PATH
Uipath Inc
Price:  
11.97 
USD
Volume:  
6,644,211.00
United States | Software
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PATH WACC - Weighted Average Cost of Capital

The WACC of Uipath Inc (PATH) is 9.9%.

The Cost of Equity of Uipath Inc (PATH) is 13.10%.
The Cost of Debt of Uipath Inc (PATH) is 7.00%.

Range Selected
Cost of equity 11.20% - 15.00% 13.10%
Tax rate 3.20% - 4.30% 3.75%
Cost of debt 7.00% - 7.00% 7.00%
WACC 9.0% - 10.8% 9.9%
WACC

PATH WACC calculation

Category Low High
Long-term bond rate 3.9% 4.4%
Equity market risk premium 4.6% 5.6%
Adjusted beta 1.6 1.8
Additional risk adjustments 0.0% 0.5%
Cost of equity 11.20% 15.00%
Tax rate 3.20% 4.30%
Debt/Equity ratio 1 1
Cost of debt 7.00% 7.00%
After-tax WACC 9.0% 10.8%
Selected WACC 9.9%

PATH's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for PATH:

cost_of_equity (13.10%) = risk_free_rate (4.15%) + equity_risk_premium (5.10%) * adjusted_beta (1.6) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.