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GitLab (GTLB) Expands AI Automation, Is The Stock Still Cheap?

Simply Wall St · 2d ago

GitLab (GTLB) drew fresh attention after releasing GitLab 19.4, a product update centered on GitLab Duo Agent Platform automation, open weight AI model options, cost controls, and tighter governance across enterprise development workflows.

Against this backdrop, GitLab’s share price has moved to $46.71, with a 90-day share price return of 48.14% and a 30-day share price return of 4.10%, while the 1-year total shareholder return of 3.62% points to strong recent momentum compared with more muted longer term gains.

Spot 88 AI infrastructure stocks that, like GitLab, are building the automation and AI foundations behind the workflows many enterprises now rely on.

After a sharp 90 day rebound, and with GitLab trading about 14% below an intrinsic estimate and nearly 19% under analyst targets, is this a reasonable market discount or caution that fits the risk profile?

Most Popular Narrative: 13% Undervalued

On the most followed view, GitLab’s fair value of $53.57 sits above the $46.71 last close. This frames the current discount as meaningful rather than marginal and places extra weight on how convincingly its AI and pricing plans can reshape the story.

GitLab's expansion of AI-driven capabilities across its DevSecOps platform, including the upcoming Duo Agent Platform with hybrid usage-based monetization, is expected to capture increased demand for automation and developer productivity tools, potentially accelerating revenue growth and expanding margins as high-value features command premium pricing and upsell opportunities.

See why 79 investors see GitLab as 13% undervalued.

Result: Fair Value of $53.57 (UNDERVALUED)

Still, GitLab’s reliance on unproven hybrid seat plus usage pricing, along with intense competition from GitHub and AI native tools, could quickly weaken this undervaluation story.

Find out about the key risks to this GitLab narrative.

Another View: GitLab Through Sales Multiples

On price to sales, GitLab looks less clear cut. The stock trades around 7.4x P/S, which is almost double the US Software industry average of 3.7x and above its own fair ratio estimate of 7x, even though it sits below a 8.7x peer average. That mix of premium to the sector but discount to peers raises a simple question for investors: Is this a reasonable price for a higher growth story, or a valuation that leaves less room for error if execution on AI and pricing stumbles?

See what the numbers say about this price — find out in our valuation breakdown.

NasdaqGS:GTLB P/S Ratio as at Sep 2026
NasdaqGS:GTLB P/S Ratio as at Sep 2026

Next Steps

Not sure whether GitLab’s current setup feels like opportunity or just noise around AI pricing experiments and fierce competition. Act quickly, review the numbers and sentiment for yourself, then weigh the balance of 1 key reward and 1 important warning sign.

Looking for more GitLab style investment ideas?

If you like the thesis around GitLab but do not want to stop at one ticker, use the Simply Wall Street Screener to widen your opportunity set before the next move.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.