UiPath Inc. (PATH) Intrinsic Value & DCF Valuation
Software - Infrastructure · NYSE
Current Price
$16.39
Intrinsic Value
$21.11
+22.4% margin of safety
What Is UiPath Inc.'s Intrinsic Value?
As of 2026-08-21, the base-case DCF model estimates the intrinsic value of UiPath Inc. (PATH) at $21.11 per share, compared with a market price of $16.39, a margin of safety of +22.4%. The base case assumes 11.2% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $17.35 to $25.41. Intrinsic value is an estimate built on assumptions, not a fact. A higher discount rate or slower growth pushes the estimate down, while stronger cash flow growth lifts it.
How the DCF works · Recalculate with your own assumptions · What is intrinsic value?
Is UiPath Inc. (PATH) Undervalued?
At $16.39, PATH trades about 22.4% below the base-case intrinsic value estimate. That is a real discount, but it stays short of the 30% margin of safety required before calling a stock undervalued.
COMPETITIVE MOAT
↑Large enterprise customer adoption
UiPath's extensive adoption by large enterprises creates significant switching costs. These customers have integrated UiPath deeply into their workflows, making it difficult and costly to replace.
↑Developer and partner ecosystem
A growing ecosystem of developers and partners builds specialized solutions on UiPath's platform. This network effect enhances the platform's value and creates stickiness for customers.
↑Data and AI capabilities
UiPath's platform collects vast amounts of process data, enabling continuous improvement and AI-driven automation insights. This data advantage fuels product innovation and customer value.
INVESTMENT RISKS
↓Dependence on enterprise sales cycles
UiPath's revenue is heavily reliant on long and complex enterprise sales cycles. Any slowdown in these cycles can significantly impact financial results.
↓Execution risk in AI integration
While AI is a growth driver, UiPath faces execution risk in effectively integrating and monetizing advanced AI capabilities across its platform.
↓Valuation and market sentiment volatility
The stock's performance is sensitive to market sentiment and valuation expectations, as seen in recent price drops despite positive sector news.
Base case
PATH base case valuation
Intrinsic Value
$21.11
Margin of safety
+22.4%
Expected annual return
+5.2%
Base case assumptions: 11.2% annual growth, 10.0% discount rate, 23.23x exit multiple, 5 year projection. Data as of 2026-08-21.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PATH valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for UiPath Inc. respond.
Open DCF Calculator for PATHCompany Overview
UiPath Inc. delivers a comprehensive automation ecosystem, specializing in Robotic Process Automation (RPA) solutions, with a significant presence in the United States, Romania, and Japan. The company's integrated software suite empowers organizations to design, administer, execute, interact with, evaluate, and oversee their automation initiatives. This robust platform seamlessly blends artificial intelligence with features such as desktop activity recording and in-depth analysis of both human actions and system logs. Through intuitive visualization tools within a centralized portal, users can effectively discover, analyze, and identify processes ripe for automation. It provides low-code development environments, enabling personnel across an organization to create both human-assisted and fully autonomous automations without needing prior programming knowledge. These automation bots can be deployed for interactive use or run independently in the background, leveraging native connectors for integration with common line-of-business applications. UiPath also offers centralized tools for managing, testing, and deploying automations and machine learning models enterprise-wide, and supports the orchestration of complex, long-running processes that coordinate work between robots and humans. Moreover, the platform allows users to track, measure, and forecast automation performance, assisting businesses in ensuring compliance with industry standards. Beyond its core technology, the company provides essential maintenance and support services, along with professional services like training and implementation to facilitate smooth platform adoption. UiPath's diverse clientele includes entities in banking, healthcare, financial services, and government. Founded in 2005, UiPath Inc. maintains its headquarters in New York, New York.
Financial Metrics — PATH Stock Valuation Data
Revenue/Share (TTM)
$3.19
FCF/Share (TTM)
$0.72
ROIC (TTM)
5.0%
ROE (TTM)
17.3%
P/FCF
23.2x
EV/EBITDA
51.0x
FCF Yield
4.30%
Debt/Equity
0.04x
On a trailing twelve-month basis, PATH generates free cash flow per share of $0.72 alongside a ROIC of 5.0%, both central inputs for a DCF valuation. Its P/FCF ratio of 23.2x and FCF yield of 4.30% then frame how PATH is priced against peers on a cash flow basis.
Frequently Asked Questions
What is the intrinsic value of PATH?
UiPath Inc. currently generates $0.72 in free cash flow per share. At the current price of $16.39, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is PATH undervalued?
PATH trades at a P/FCF ratio of 23.2x with a free cash flow yield of 4.30%. This P/FCF is in a moderate range. However, whether PATH is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value PATH stock using DCF?
To perform a DCF valuation on UiPath Inc.: (1) Start with the trailing free cash flow per share ($0.72) as the base, (2) project future FCF growth over 5-10 years based on Software - Infrastructure industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting PATH's risk profile — with a debt-to-equity of 0.04x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to PATH?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For UiPath Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Software - Infrastructure trends, then discounting those amounts to today's dollars. PATH's ROIC of 5.0% means the company's return on invested capital sits below the level that typically clears its cost of capital.
How does WACC affect PATH stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For PATH, with a debt-to-equity ratio of 0.04x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 51.0x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See PATH PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Technology valuationsDCF and P/E value PATH with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-08-21. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.