A sliding mode observer is presented, which is rigorously proven to achieve finite-time state estimation of a dual-parallel underactuated (i.e., single-input multi-output) cart inverted pendulum system in the presence of parametric uncertainty. A salient feature of the proposed sliding mode observer design is that a rigorous analysis is provided, which proves finite-time estimation of the complete system state in the presence of input-multiplicative parametric uncertainty. The performance of the proposed observer design is demonstrated through numerical case studies using both sliding mode control (SMC)- and linear quadratic regulator (LQR)-based closed-loop control systems. The main contribution presented here is the rigorous analysis of the finite-time state estimator under input-multiplicative parametric uncertainty in addition to a comparative numerical study that quantifies the performance improvement that is achieved by formally incorporating the proposed compensator for input-multiplicative parametric uncertainty in the observer. In summary, our results show performance improvements when applied to both SMC- and LQR-based control systems, with results that include a reduction in the root-mean square error of up to 39% in translational regulation control and a reduction of up to 29% in pendulum angular control.