Uipath Inc Stock Fair Value – UiPath Stock Set to Soar on Inflationary Pressure
April 19, 2023
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UIPATH ($NYSE:PATH): UiPath Inc. is an automation software company that provides robotic process automation (RPA) solutions for businesses and organizations. UiPath’s cloud-based platform enables organizations to rapidly develop and deploy automation to help improve business processes such as customer service, finance, and operations. Recently, UiPath’s stock is set to soar due to inflationary pressure. Inflation is a sustained increase in the cost of goods and services over time. It affects all businesses, including UiPath Inc. As the cost of goods and services rise, the cost of doing businesses increases, thus leading to an increase in the stock prices of UiPath Inc. This is because companies will be able to make more profits due to higher revenues, which will be reflected in their stock prices.
Moreover, UiPath Inc.’s RPA solutions can help to offset the costs associated with inflation by reducing overheads and increasing efficiency, allowing companies to remain competitive despite rising costs. This could also lead to increased demand for UiPath’s solutions, further driving up its stock prices. With its RPA solutions providing the potential to reduce overhead costs and increase efficiency, UiPath Inc. stands to benefit from the current economic environment.
Market Price
On Tuesday, UIPATH INC saw a significant drop in its share price as the stock opened at $16.5 and closed at $16.0, down 1.6% from the prior closing price of 16.2. This could cause UIPATH INC to become less attractive to investors due to their higher cost which could result in a decrease in their stock price.
However, this may only be a short-term drop and analysts are expecting the stock to soar in the long run. UIPATH INC has been making great strides in the automation industry and their products and services have become an invaluable asset for many businesses. With its focus on innovation and customer satisfaction, UIPATH INC is positioned to take advantage of future market opportunities and could be set for another surge in its stock price. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Uipath Inc. More…
| Total Revenues | Net Income | Net Margin |
| 1.06k | -328.35 | -31.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Uipath Inc. More…
| Operations | Investing | Financing |
| -9.98 | -289.14 | -60.67 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Uipath Inc. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.74k | 815.05 | 3.37 |
Key Ratios Snapshot
Some of the financial key ratios for Uipath Inc are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 46.6% | – | -32.9% |
| FCF Margin | ROE | ROA |
| -3.2% | -11.5% | -8.0% |
Analysis – Uipath Inc Stock Fair Value
At GoodWhale, we have taken a deep dive into the financials of UIPATH INC. Our proprietary Valuation Line has estimated the fair value of UIPATH INC shares to be around $39.6. Right now, the stock is trading at $16.0, undervalued by 59.6%. This could be an attractive opportunity for investors looking to capitalize on the potential upside. We believe that UIPATH INC is in a strong position to grow in the coming years and has the potential to be a rewarding investment. More…
Peers
In the world of robotic process automation (RPA), there are a few major players. UiPath Inc is one of the largest, and its main competitors are Microsoft Corp, Pegasystems Inc, and Salesforce Inc. While all four companies offer similar products and services, UiPath has managed to set itself apart as a leader in the industry.
– Microsoft Corp ($NASDAQ:MSFT)
Microsoft Corporation is an American multinational technology company with a market cap of 1.78 trillion as of 2021. The company develops, manufactures, licenses, supports, and sells computer software, consumer electronics, personal computers, and related services. Its best known software products are the Microsoft Windows line of operating systems, the Microsoft Office suite, and the Internet Explorer and Edge web browsers. The company’s hardware products include the Xbox video game consoles and the Microsoft Surface lineup of touchscreen personal computers. Microsoft has a Return on Equity of 45.3% as of 2022.
Microsoft was founded by Bill Gates and Paul Allen on April 4, 1975, to develop and sell BASIC interpreters for the Altair 8800. It rose to dominate the personal computer operating system market with MS-DOS in the mid-1980s, followed by Microsoft Windows. The company’s 1986 initial public offering (IPO), and subsequent rise in its share price, created three billionaires and an estimated 12,000 millionaires from Microsoft employees. Since the 1990s, Microsoft has increasingly diversified from the operating system market and has made a number of corporate acquisitions. In May 2011, Microsoft acquired Skype Technologies for $8.5 billion in its largest acquisition to date.
– Pegasystems Inc ($NASDAQ:PEGA)
Pegasystems is a software company that specializes in customer relationship management (CRM) and business process management (BPM) software. The company has a market cap of 2.65B as of 2022 and a return on equity of -51.8%. The company’s products are used by large organizations in a variety of industries, including banking, insurance, healthcare, and manufacturing.
– Salesforce Inc ($NYSE:CRM)
Salesforce is an American cloud-based software company specializing in customer relationship management (CRM) products. As of March 2021, it was the world’s largest CRM company with a market capitalization of over $153 billion. The company’s customer relationship management (CRM) product is called Salesforce CRM.
Salesforce was founded in 1999 by Marc Benioff, Parker Harris, Dave Moellenhoff, and Frank Dominguez as a company specializing in software as a service (SaaS). The company’s initial public offering was in June 2004, raising $110 million. In 2015, Salesforce had annual revenue of $5 billion. In 2016, it was ranked the fastest growing software company in the world with a market capitalization of $50 billion. In 2018, Salesforce was ranked the third most innovative company in the world by Forbes.
Summary
UiPath is a provider of Robotic Process Automation (RPA) services which has been gaining traction in recent years as companies look to automate processes and improve efficiency. Analysts believe that the inflationary trend in the economy will be a positive for UiPath’s stock. This is because inflation reduces the cost of labor, making automation more attractive to firms, which could result in increased demand for UiPath’s services.
Additionally, UiPath has established a strong position in the RPA market and is viewed as a leader in the industry. Furthermore, they have a broad customer base across different industries and have a recurring revenue stream. For these reasons, many analysts are bullish on the stock and believe that it could have strong upside potential in the long-term.
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