Is UiPath Stock Trading at a Bargain Valuation?

The more things change, the more they stay the same. That’s going to be the theme of our article as we do our annual check in with UiPath (PATH), a robotic process automation (RPA) company that just cracked $1 billion in revenue for its wide-ranging automation software for enterprises that does just about everything but the breakroom dishes. 

Originally founded in Romania (apparently not where the pope lives) in 2005, UiPath went public two years ago when the markets were still hot. A year later after that IPO, shares of UiPath fell 75% compared to a mere 5% drop across the NYSE, the exchange where UiPath stock trades, over the same time frame. We were kind of puzzled over why UiPath shares had fallen so dramatically given the solid thesis and positive financial metrics. But as you all know, share prices are irrelevant. It all comes down to valuation.

Markets are Down

In our last check in with UiPath a year ago, we speculated that the drop in share price might have been a natural market correction from the pre- and post-IPO hype around UiPath stock. We then calculated that the software company’s valuation at the time aligned with those of its peers. Today, we see the same thing. UiPath sports a simple valuation ratio of 7.5 compared to our catalog average of 6. One might argue it should be trading at a premium since robotic process a