UiPath Valuation

Dear Reader,

UiPath, the automation software company, staged an IPO on the 21.04.2021.

The market currently values UiPath at 35.385 bilion USD.

I estimate UiPath is worth around 17 billion USD or less than half its current market valuation. 

Based on its financial statements UiPath made 336.2 mln. USD and 607.6 mln. USD in revenue in the fiscal years 2020 and 2021 ending in January respectively  and lost 520 mln. USD and 92.4 mln. USD in 2020 and 2021 respectively.

Yes, UiPath's revenue almost doubled year on year and its losses shrank markedly. That said, the market is discounting too fast a revenue growth and too high future profit margin. Yes, automation driven by artificial intelligence is the future, but UiPath's future will not come so fast as the market seems too think. This is a classic case of overvaluation.

Currently, we are experiencing another dot-com bubble evidenced by the excessively high valuations of technology companies, the number of listed technology companies with no revenue and the extremely large and brisk financing rounds of private technology companies who are yet to show a yearly net profit.

Disclaimer: The blogposts and comments on this blog and posts on social networks(Twitter, LinkedIn, Facebook etc.) are not investment recommendation, are provided solely for informational purposes, and do not constitute an offer or solicitation to buy or sell any securities. The opinions expressed on the blog are Petar Posledovich's. Petar Posledovich does not guarantee the accuracy of the information presented on this blog and social networks. The information presented is "as is".

Petar Vladimirov Posledovich is not liable for any investment losses incurred by reading and interpreting blogposts on this blog and posts on social networks.

Conflicts of interest: I may possess some of the securities, currencies or their derivatives mentioned in the blogpost and posts on social networks(Twitter, LinkedIn etc.)!

Respectfully yours,

Petar Posledovich