Is UiPath, Inc. overvalued or undervalued?

As of 4 September 2025, the valuation grade for UiPath, Inc. has moved from risky to attractive, indicating a more favorable outlook. Despite this improvement, the company appears to be overvalued based on its current financial metrics. The Price to Book Value stands at 4.45, while the EV to Sales ratio is 4.14, both suggesting a premium valuation relative to its underlying assets and sales. Additionally, the EV to EBITDA ratio is notably negative at -69.78, reflecting significant operational challenges.
In comparison to its peers, UiPath's valuation metrics are starkly higher, with a P/E ratio of 190.42 compared to Jack Henry & Associates, Inc. at 36.61 and Dayforce, Inc. at 125.57, indicating that investors may be paying excessively for growth that has yet to materialize. Furthermore, UiPath's recent stock performance shows a decline of 4.41% year-to-date, contrasting sharply with the S&P 500's gain of 12.22% over the same period, reinforcing the notion that the stock may be overvalued in the current market context.