Analysts Reports, RPA Market Size, and the Blue Prism Share Price
I am always a bit intrigued by analyst forecasts.
To us outsiders, it is impossible to know what they base their forecasts on and what numbers they use. Analysts do a powerful job, so this is not a criticism, just a question that has been bugging me…
What is the economic impact of RPA?
I’ve summarised a few of the analyst forecasts below and it is always a reassuring picture to show to anyone not convinced by the buzz around RPA. The confidence that the market is growing so fast is enough to push them over the edge.
But how do these numbers square with the most visible, undeniable, provable number that is out there… the Blue Prism share price.
If analysts are saying the market is going to be worth $1.2bn by 2021, how does that fit with the fact that one company on its own is worth $1.8bn?
And I am guessing that UiPath and Automation Anywhere have a similar valuation. So among the three of them there is $6bn of value – albeit spread across the foreseeable lifetime.
Add in the value of the other RPA-only players, the consultancies, the thousands of specialist RPA implementation firms, and the gap widens.
Then what about the business benefits being driven by the technology, adding value to the users of RPA.
It is not hard to see the value created by RPA getting to $50bn of value. Even spread across 20 years of impact, that is $2.5bn – way in excess of the numbers being quoted by the analysts.
I know that I am trying to compare analysts apples (the annual value for RPA-related services) with my pears (the value created by RPA), and I know I am not being too scientific, but I am sure you see my point.
Regardless, congratulations to Blue Prism for crossing the £20 threshold and they – along with AA and UiPath and the others – are a lesson in perseverance. None of this happened overnight. It was a long journey. And it is just a start.