Home A Forecast How Much UiPath Shares Might Cost in Five Years

A Forecast How Much UiPath Shares Might Cost in Five Years

by sol-admin

In April, UiPath went public at $56 per share, jumping 23% on the first day. Given the company’s background, namely the exponential growth of the RPA industry and UiPath’s leadership in this market, it’s not surprising that investors raced to buy this tech stock. But sometimes hype drives a stock price more than the underlying fundamentals. So before you invest your hard-earned dollars, let’s look more closely at UiPath and its long-term prospects.

UiPath’s platform blends RPA and AI, which includes natural-language processing, computer vision, and machine learning. In other words, UiPath can transform enterprises by replacing humans with bots. This boosts efficiency by freeing people from tedious or repetitive tasks, allowing them to spend their time on more valuable activities. Given the potential here, UiPath estimates its current market opportunity at $60 billion, but management expects this figure to grow over time.

Research firm Gartner has recognized UiPath as the leader in the RPA market, citing its ability to handle complex processes as a key differentiator. More recently, research firm Forrester also noted UiPath’s leadership, citing a stronger current offering and a stronger growth strategy than any rival.

In addition, the company had 7,968 customers as of Jan. 31, 2021, up from 2,671 just two years earlier. That means UiPath’s customer base has grown by 198% during that short time period which has powered stellar top-line growth.

While UiPath is not currently profitable, it did generate a positive free cash flow of $26 million during fiscal 2021. That’s a good sign, suggesting that its business is self-sustaining. In other words, the company won’t need to issue debt or dilute shareholders to fund growth.

UiPath’s net retention rate was 145% during 2021, indicating a 45% uptick in average customer spend. That speaks to its platform’s stickiness; it’s hard for clients to stop using it once they’ve started. In the coming years, that should help UiPath continue to grow quickly.


UiPath is a newly public company, and the public spotlight can negatively impact a business, from its culture to its financial performance. Investors should pay close attention to how UiPath handles this transition.


For investors, it’s important to understand how a company fits into an industry’s competitive landscape. And while rivals like Microsoft are much larger than UiPath, this tech company has still achieved a greater market presence which is awesome. Given its sizable market opportunity, solid competitive position, and strong top-line growth, UiPath looks like a long-term winner. Of course, it’s impossible to know exactly where a company will be in five years, but it would be no surprise if this growth stock* doubled or tripled during that time period.

* – a growth stock is the stock of a company that’s expected to increase its profits or revenues faster than the average business in its industry or the market broadly. Growth stocks appeal to many investors because Wall Street often values a company based on a multiple of its earnings (its profits), which may be diminished if the company is reinvesting most of its leftover cash in further expansion.

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