Is it over valued


Aime
Palantir Technologies Inc. (PLTR) is currently overvalued. This conclusion is based on the following points:
- High P/E Ratio: The P/E ratio for Palantir is 326.371, which suggests that the stock is trading at a significant premium compared to the earnings it generates. A high P/E ratio can indicate that the stock's price is high relative to earnings and possibly overvalued.
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PLTR P/E(TTM), Diluted EPS
- Elevated P/S Ratio: The P/S ratio stands at 37.122, which is another indicator of a high valuation. This ratio compares the stock's price to its sales, and a higher number may imply that the price is high compared to the company's revenue.
PLTR P/S, Price to Book Ratio
- Intrinsic Value Analysis: The intrinsic value of Palantir has been calculated to be significantly lower than the current market price, with an 81% overvaluation3. This analysis uses the Discounted Cash Flow (DCF) method and relative valuation techniques, providing an objective basis for concluding that the stock is overvalued.
- Technical Indicators: Despite strong financial results and bullish technical indicators, the stock's high P/S and P/CF ratios and mixed signals from indicators suggest near-term weakness4. This indicates that while there is potential for continued upward momentum, the current valuation may be stretched.
- Analyst Sentiments: There are divergent views among analysts, with some bullish on Palantir's AI prospects, while others recommend a sell due to earnings lagging behind the price surge56. However, the consensus seems to be that the stock's valuation is high relative to its earnings and may not be justified by its current performance.
In summary, the combination of high valuation metrics, intrinsic value calculations, and analyst sentiments strongly suggest that Palantir Technologies Inc. is overvalued at its current price of $43.51.
Source:
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PLTR P/E ratio, EPS, ROE
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