UiPath Inc. (PATH) Intrinsic Value & DCF Valuation
Software - Infrastructure · NYSE
Current Price
$12.59
Intrinsic Value
$15.28
+17.6% margin of safety
What Is UiPath Inc.'s Intrinsic Value?
As of 2026-07-29, the base-case DCF model estimates the intrinsic value of UiPath Inc. (PATH) at $15.28 per share, compared with a market price of $12.59, a margin of safety of +17.6%. The base case assumes 8.4% annual free cash flow growth and a 10.0% discount rate.
Across the sensitivity grid the estimate spans $12.24 to $18.78. 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 $12.59, PATH trades about 17.6% 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
↑Early Mover in Enterprise Automation
UiPath established itself as a leader in the Robotic Process Automation (RPA) market. This early advantage created significant brand recognition and a substantial customer base.
↑Network Effects in Platform Adoption
As more enterprises adopt UiPath's platform, the value increases for all users. This includes a growing ecosystem of developers and third-party integrations.
↑Switching Costs for Enterprise Clients
Integrating UiPath deeply into enterprise workflows creates high switching costs. Retraining staff and reconfiguring complex automation processes is time-consuming and expensive.
INVESTMENT RISKS
↓Dependence on Enterprise Adoption Pace
UiPath's success hinges on the speed and scale of enterprise adoption of its expanding automation ambitions. Slower adoption rates could impact revenue and market share.
↓Technological Disruption in AI
Rapid advancements in AI could lead to new, more efficient automation solutions that bypass UiPath's current platform architecture. This poses a long-term threat to its competitive edge.
↓Valuation Sensitivity to Growth Expectations
The stock's valuation appears sensitive to growth expectations, particularly around its AI strategy. Any earnings test or missed ARR targets could lead to significant price volatility.
Base case
PATH base case valuation
Intrinsic Value
$15.28
Margin of safety
+17.6%
Expected annual return
+4.0%
Base case assumptions: 8.4% annual growth, 10.0% discount rate, 18x exit multiple, 5 year projection. Data as of 2026-07-29.
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
17.8x
EV/EBITDA
38.4x
FCF Yield
5.60%
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 17.8x and FCF yield of 5.60% 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 $12.59, 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 17.8x with a free cash flow yield of 5.60%. 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 38.4x, 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 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.