UiPath Inc. (PATH) is currently trading at a forward price-to-sales (P/S) ratio of 4.37, significantly lower than the industry average of 5.68. This valuation has raised interest among growth-focused investors, indicating that PATH may offer a relative bargain in the robotic process automation sector. The company’s expansion across finance, healthcare, and logistics has been bolstered by its strong recurring revenues and international growth despite broader macroeconomic uncertainties.
Compared to peers like ServiceNow (NOW) and Pegasystems (PEGA), which trade at higher P/S ratios, UiPath’s valuation appears modest. ServiceNow benefits from a broad enterprise suite and consistent profitability, while Pegasystems enjoys strong client relationships. However, PATH’s faster revenue growth and focus on automation position it for potential upside within the enterprise software landscape. The company currently holds a Zacks Rank of #2 (Buy).
