Which AI Stock Offers a Stronger Long-Term Value Proposition: Figma or UiPath?

The AI automation sector has become a battleground for innovation and growth, with companies like Figma and UiPath vying for dominance in distinct but overlapping markets. As investors weigh long-term value propositions, the critical question is whether Figma's rapid design-software expansion or UiPath's enterprise automation focus offers a more sustainable and efficiently valued opportunity.

Growth Sustainability: Figma's Momentum vs. UiPath's Strategic Depth

Figma, the design collaboration platform, has demonstrated explosive growth in 2025, with third-quarter revenue rising 38% year-over-year to $274.2 million and full-year guidance projecting $1.044–$1.046 billion in revenue-a 40% increase at the midpoint of the range. Its 131% net dollar retention rate for high-ARR customers underscores strong cross-selling and retention capabilities. However, Figma's growth is largely confined to the design and prototyping niche, a market that, while expanding, faces saturation risks as AI tools democratize design workflows.

UiPath, by contrast, is leveraging its RPA (robotic process automation) foundation to pivot into agentic automation, a broader category that integrates AI-driven workflows across enterprise processes. In late 2025, the company reported 450 customers actively using its Agentic Automation suite, with over one million agent runs since launch. This shift has translated into tangible financial results: UiPath achieved its first GAAP profitable quarter in Q3 2025, with a $13 million operating income and raised Q4 revenue guidance to $462–$467 million. Its strategic acquisitions, such as Peak AI, and partnerships with tech giants like Google and Microsoft position it to capitalize on the broader AI automation wave.

Valuation Efficiency: Figma's Premium vs. UiPath's Undervaluation

Figma's valuation appears stretched relative to its peers. As of late 2025, it trades at a forward 12-month P/S ratio of 11.45X, significantly higher than UiPath's 5.79X. While Figma's 40% revenue growth is impressive, its P/S ratio exceeds the software industry average of 5.33X and is 30% above UiPath's peer group average of 8.84X. This premium may reflect optimism about its AI-powered design tools but could also signal overvaluation if growth slows or competition intensifies.

UiPath, meanwhile, appears undervalued by traditional metrics. A DCF analysis estimates its intrinsic value at $17.89 per share, implying an 11.3% discount to current pricing. The company's free cash flow is projected to grow from $318.9 million in 2025 to $700.8 million by 2035, supported by a robust balance sheet and a current ratio of 2.65. Its P/S ratio of 5.79X, while above the industry average, reflects a more conservative multiple for a company with expanding margins and diversified AI integration.

Strategic Positioning in the AI Automation Ecosystem

Figma's strength lies in its dominance of the design-collaboration space, where AI tools are enhancing prototyping and user experience workflows. However, this market is increasingly competitive, with Adobe and Canva investing heavily in AI-driven design features. UiPath's advantage is its enterprise focus: its Agentic Automation platform addresses complex, industry-specific use cases, from healthcare to finance, through partnerships and vertical-specific AI models. The company's FedRAMP certification also opens doors to the public sector, a high-margin growth segment.

Conclusion: Balancing Growth and Efficiency

For investors prioritizing growth sustainability, Figma's 40% revenue growth and high net retention rate are compelling. Yet its valuation premium and niche market exposure introduce risks. UiPath, with its diversified AI strategy, improving profitability, and undervalued stock, offers a more balanced proposition. Its ability to scale agentic automation across industries-backed by strategic acquisitions and cash reserves-positions it as a stronger long-term bet in the AI automation space.

In the end, UiPath's combination of valuation efficiency, strategic AI integration, and enterprise scalability makes it the more attractive investment for those seeking durable value in the evolving automation landscape.