PLTRNEUTRAL

PLTR FCF Yield Analysis

0.5%

Higher than 26% of Technology sector peers

Updated 536h ago·SEC filings & market data

Key Takeaway

The FCF yield of 0.7% means Palantir generates free cash flow equal to 0.7% of its stock price each year, so an investor gets very little cash return relative to what they pay for the shares.

Sector Performance

26th percentile

PLTR

0.5%

Sector Median

2.5%

Sector Avg

3.9%

Prior Period

0.7%(Aug 2026)

↓ Declining

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Deep Analysis

The FCF yield of 0.7% means Palantir generates free cash flow equal to 0.7% of its stock price each year, so an investor gets very little cash return relative to what they pay for the shares.

This sits far below the technology sector median of 2.5%, placing the company in the 28th percentile among its peers, meaning most sector companies offer a higher cash yield. The trend is mostly unavailable: the year-over-year change is N/A, but the quarter-over-quarter change shows a decline of 12.5%, with historical values moving from 0.8% down to 0.7% most recently. A low yield combined with a recent drop implies that Palantir’s valuation is not supported by strong current cash generation, which adds downside risk if growth expectations fade. However, the absolute decline is small and the metric remains positive, so it does not signal a severe cash problem. This metric directly supports the overall NEUTRAL verdict because it shows neither a compelling cash opportunity nor a critical weakness.

Frequently Asked Questions

What does the FCF Yield tell investors about PLTR?

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.

How is the FCF Yield calculated?

FCF Yield is calculated as: Free Cash Flow / Market Cap.

How does PLTR's FCF Yield compare to its sector?

PLTR's FCF Yield of 0.5% compares to a Technology sector median of 2.5%, placing it in the 26th percentile.

Who are PLTR's closest peers by FCF Yield?

The closest Technology peers by FCF Yield include: SMAR (2.4%), AAPL (2.2%), AMBA (2.1%), MODN (2.0%), MSFT (1.9%).

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Learn More About FCF Yield

Understanding Free Cash Flow

Free cash flow is the lifeblood of any business. In this post, we explore why it matters more than net income for long-term investors.

Free Cash Flow Yield: Why It Matters More Than Earnings Per Share

EPS is accounting. FCF is reality. Here's how to calculate free cash flow yield, why Warren Buffett prioritizes it, and how to use it to spot genuinely profitable companies.

The Formula

Free Cash Flow / Market Cap

Why It Matters

One of the purest measures of value. High FCF yield means the company generates a lot of cash relative to its price — favoured by value investors.