Palantir Technologies Inc.PLTR
NMS • Technology
$173.96
P/E
138.03
PEG
0.61
FCF Yield
0.5%
Rev Growth YoY
+92.8% YoY
Gross Margin
84.7%
Health Score
9/10
D/E Ratio
—
Confidence
LOW
Business Snapshot
Palantir Technologies operates in the software-infrastructure space, delivering data analytics and artificial-intelligence platforms primarily to government and commercial customers. Its flagship products — Gotham, Foundry, and the AIP (Artificial Intelligence Platform) — drive revenue through large, long-duration enterprise contracts. The company competes as a specialist challenger in the AI/data-analytics market against larger diversified software vendors, differentiating itself through deep government relationships and mission-critical deployment capabilities. With a market cap of $418.04B and TTM revenue of $6.16B, it sits squarely in large-cap territory, commanding an exceptionally high revenue multiple that reflects premium growth expectations. Its defining characteristic is the combination of high-margin software economics — 84.7% gross margin — with an asset-light model that carries no debt.
Financial Health
Gross margin of 84.7% shows a slight contraction from the prior year's 86.8%, while net margin of 49.0% illustrates strong bottom-line conversion after operating expenses. The balance sheet is effectively fortress-grade: debt-to-equity sits at 0.0x, and the current ratio of 7.23x provides abundant short-term liquidity coverage far above the 1.0x comfort threshold...
Risk Assessment
- VALUATION — P/E of 138.03x is more than 3.5x the sector average of 38.3x, pricing in years of uninterrupted hypergrowth.
- VALUATION — Price/Sales of 67.91x and Price/Book of 42.76x leave essentially no margin of safety if growth decelerates.
- EV/EBITDA — EV/EBITDA of 153.59x — note this figure may be distorted or reflect a data error; EBITDA is likely near zero, negative, or reflects a transitional period. Use P/E or P/S as primary valuation anchors.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
- INSIDER ACTIVITY — 6 insider sells versus 0 buys over the last 90 days signals that those closest to the company are monetizing their positions.
- FCF YIELD — Free cash flow of $2.10B represents only a 0.5% FCF yield, meaning equity holders receive minimal cash return relative to the price paid.
- DCF DIVERGENCE — The market price of $173.96 is roughly 493% above the Python DCF estimate of $29.33, indicating extreme sensitivity to the 3.0% terminal growth assumption in that model....
Gross margin of 84.7% shows a slight contraction from the prior year's 86.8%, while net margin of 49.0% illustrates strong bottom-line conversion after operating expenses. The balance sheet is effectively fortress-grade: debt-to-equity sits at 0.0x, and the current ratio of 7.23x provides abundant short-term liquidity coverage far above the 1.0x comfort threshold. The company generates $2.10B in free cash flow, though the FCF yield of 0.5% is minimal relative to the share price, reflecting the extremely rich valuation. Return on equity of 38.1% demonstrates highly efficient capital deployment and substantial value creation on a relatively small equity base. Overall, the financial position leaves ample room for reinvestment in growth initiatives, with zero financial-leverage risk and no immediate need to raise external capital. For income-oriented investors, however, the 0.5% FCF yield means cash returns to shareholders are negligible at current prices.
- VALUATION — P/E of 138.03x is more than 3.5x the sector average of 38.3x, pricing in years of uninterrupted hypergrowth. - VALUATION — Price/Sales of 67.91x and Price/Book of 42.76x leave essentially no margin of safety if growth decelerates. - EV/EBITDA — EV/EBITDA of 153.59x — note this figure may be distorted or reflect a data error; EBITDA is likely near zero, negative, or reflects a transitional period. Use P/E or P/S as primary valuation anchors. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed. - INSIDER ACTIVITY — 6 insider sells versus 0 buys over the last 90 days signals that those closest to the company are monetizing their positions. - FCF YIELD — Free cash flow of $2.10B represents only a 0.5% FCF yield, meaning equity holders receive minimal cash return relative to the price paid. - DCF DIVERGENCE — The market price of $173.96 is roughly 493% above the Python DCF estimate of $29.33, indicating extreme sensitivity to the 3.0% terminal growth assumption in that model.
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