<div id="readability-page-1"><div><ul> <li>Wondering whether UiPath shares offer value at today's price, or if the market is pricing in too much hope already? This article walks through what the numbers are actually saying about the stock.</li> <li>UiPath's recent share price has moved to US$12.59, with returns of 14.9% decline over 7 days, 20.7% decline over 30 days, 20.7% decline year to date, 11.5% decline over 1 year and 25.5% decline over 3 years.</li> <li>Recent coverage has focused on UiPath as an AI and automation player in a competitive software space, which has kept investor attention on how the company is positioned against other software peers. This context helps explain why even modest shifts in sentiment around growth or automation themes can coincide with sharp price moves.</li> <li>On Simply Wall St's valuation checks, UiPath currently scores 4 out of 6. Next, we will walk through the different valuation approaches behind that score, before finishing with a way to think about valuation that goes beyond any single metric.</li> </ul> Find out why UiPath's -11.5% return over the last year is lagging behind its peers. <h3>Approach 1: UiPath Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow, or DCF, model projects a company’s future cash flows and then discounts them back to today to estimate what the business might be worth right now. For UiPath, the model used is a 2 Stage Free Cash Flow to Equity approach. The latest twelve month free cash flow is about $319.9 million. Analysts provide explicit free cash flow estimates for the next few years. Simply Wall St then extends those estimates, with the ten year projection reaching $684.9 million in 2035, all in $ and all still under $1b per year. After discounting those cash flows back to today, the DCF model arrives at an estimated intrinsic value of $17.90 per share. Compared with the recent share price of $12.59, this implies the stock trades at a 29.7% discount. On this cash flow view alone, UiPath shares appear undervalued. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests UiPath is undervalued by 29.7%. Track this in your watchlist or portfolio, or discover 875 more undervalued stocks based on cash flows. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/118d0bce-2400-4b69-91a8-370093ccb2e9/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/118d0bce-2400-4b69-91a8-370093ccb2e9/chart/dcf"/><figcaption>PATH Discounted Cash Flow as at Feb 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for UiPath. <h3>Approach 2: UiPath Price vs Earnings</h3> For a profitable company, the P/E ratio is a useful shorthand for how much investors are currently paying for each dollar of earnings. It ties the share price directly to the bottom line, which is what ultimately supports long term valuations. What counts as a “normal” P/E depends a lot on how fast earnings are expected to grow and how risky those earnings are. Higher growth and more predictable earnings can justify a higher P/E, while slower or more uncertain earnings usually call for a lower P/E. UiPath currently trades on a P/E of 29.31x. That sits above the Software industry average of 28.24x and below the peer group average of 46.19x, so the stock is priced between the wider sector and closer, higher rated peers. Simply Wall St’s “Fair Ratio” for UiPath is 13.13x. This is a proprietary estimate of what P/E might make sense given factors such as the company’s earnings growth profile, industry, profit margins, market cap and specific risks. Because it blends these fundamentals, the Fair Ratio can be more tailored than simple peer or industry comparisons, which do not adjust for company specific differences. Comparing UiPath’s actual P/E of 29.31x to the Fair Ratio of 13.13x suggests the shares trade at a higher multiple than that model would imply. Result: OVERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/118d0bce-2400-4b69-91a8-370093ccb2e9/chart/pe-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/118d0bce-2400-4b69-91a8-370093ccb2e9/chart/pe-multiple-vs-industry"/><figcaption>NYSE:PATH P/E Ratio as at Feb 2026</figcaption></figure> P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1426 companies where insiders are betting big on explosive growth. <h3>Upgrade Your Decision Making: Choose your UiPath Narrative</h3> Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, a simple way to attach your own story about UiPath to the numbers you see on screen. A Narrative is your view of what the company is trying to achieve, translated into a set of assumptions about future revenue, earnings and margins, which then flow through to a fair value estimate. On Simply Wall St, Narratives sit in the Community page and are designed to be easy to use, so you can see how your fair value compares with the current market price and decide for yourself whether UiPath looks attractive, fully priced or expensive. Narratives also update when new information appears, such as fresh earnings or news, so your forecasts and fair value stay connected to what is actually happening with the business. For example, one UiPath Narrative might assume a relatively low fair value with cautious revenue and margin assumptions, while another might set a much higher fair value based on stronger revenue growth and profitability expectations, showing how different investors can look at the same company and reach very different conclusions. Do you think there's more to the story for UiPath? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/118d0bce-2400-4b69-91a8-370093ccb2e9/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/118d0bce-2400-4b69-91a8-370093ccb2e9/chart/quote-price"/><figcaption>NYSE:PATH 1-Year Stock Price Chart</figcaption></figure> This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.</div></div>

PATH

UiPath's shares have recently declined to $12.59, reflecting a 14.9% drop over the past week and a 25.5% decline over three years. A Discounted Cash Flow (DCF) analysis suggests the stock is undervalued by 29.7%, with an intrinsic value of $17.90 per share. However, its P/E ratio of 29.31x is above the industry average, indicating it may be overvalued. Investors are encouraged to consider their own narratives about the company's future to assess its attractiveness in the market.

Has The Recent Slide In UiPath (PATH) Opened A Window Of Opportunity For Investors?