UiPath (PATH), mcap=$11.6bn, price $21.29 vs $20.02

– Automation software platform provider for enterprises.
– Growing at 30%+ with 98% gross retention.
– Low capital intensity and improving operating profile put the company on the path to profitable growth at scale.
– A sticky product that competitors were not able to commoditize.
– Upselling potential with adjacent product suite.
– Trade structured through Jan’23 puts provides downside protection and valuation of 4.7x FY24 ARR.
– The smaller and slower-growing competitor was taken out at 5x NTM ARR.

Valuation: Assuming 30% ARR CAGR till FY26, 40% EBITDA margins, and 20x multiple results in a $29/share fair valuation today.

Exp. gain: +44% to $29/share.

Full $PATH write-up (free guest account required):

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