PLTR Relative Valuation
PLTR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, PLTR is overvalued; if below, it's undervalued.
Historical Valuation
Palantir Technologies Inc (PLTR) is now in the Overvalued zone, suggesting that its current forward PE ratio of 180.88 is considered Overvalued compared with the five-year average of 117.73. The fair price of Palantir Technologies Inc (PLTR) is between 48.26 to 163.69 according to relative valuation methord. Compared to the current price of 179.30 USD , Palantir Technologies Inc is Overvalued By 9.53%.
Relative Value
Fair Zone
48.26-163.69
Current Price：179.30
9.53%
Overvalued
180.88
PE
1Y
3Y
5Y
134.28
EV/EBITDA
Palantir Technologies Inc. (PLTR) has a current EV/EBITDA of 134.28. The 5-year average EV/EBITDA is 75.29. The thresholds are as follows: Strongly Undervalued below -13.41, Undervalued between -13.41 and 30.94, Fairly Valued between 119.64 and 30.94, Overvalued between 119.64 and 163.99, and Strongly Overvalued above 163.99. The current Forward EV/EBITDA of 134.28 falls within the Overvalued range.
138.11
EV/EBIT
Palantir Technologies Inc. (PLTR) has a current EV/EBIT of 138.11. The 5-year average EV/EBIT is 80.10. The thresholds are as follows: Strongly Undervalued below -11.06, Undervalued between -11.06 and 34.52, Fairly Valued between 125.67 and 34.52, Overvalued between 125.67 and 171.25, and Strongly Overvalued above 171.25. The current Forward EV/EBIT of 138.11 falls within the Overvalued range.
69.88
PS
Palantir Technologies Inc. (PLTR) has a current PS of 69.88. The 5-year average PS is 28.49. The thresholds are as follows: Strongly Undervalued below -17.22, Undervalued between -17.22 and 5.64, Fairly Valued between 51.35 and 5.64, Overvalued between 51.35 and 74.21, and Strongly Overvalued above 74.21. The current Forward PS of 69.88 falls within the Overvalued range.
177.13
P/OCF
Palantir Technologies Inc. (PLTR) has a current P/OCF of 177.13. The 5-year average P/OCF is 99.37. The thresholds are as follows: Strongly Undervalued below -13.14, Undervalued between -13.14 and 43.11, Fairly Valued between 155.63 and 43.11, Overvalued between 155.63 and 211.88, and Strongly Overvalued above 211.88. The current Forward P/OCF of 177.13 falls within the Overvalued range.
170.37
P/FCF
Palantir Technologies Inc. (PLTR) has a current P/FCF of 170.37. The 5-year average P/FCF is -354.61. The thresholds are as follows: Strongly Undervalued below -4398.70, Undervalued between -4398.70 and -2376.66, Fairly Valued between 1667.43 and -2376.66, Overvalued between 1667.43 and 3689.48, and Strongly Overvalued above 3689.48. The current Forward P/FCF of 170.37 falls within the Historic Trend Line -Fairly Valued range.
Palantir Technologies Inc (PLTR) has a current Price-to-Book (P/B) ratio of 60.70. Compared to its 3-year average P/B ratio of 28.04 , the current P/B ratio is approximately 116.48% higher. Relative to its 5-year average P/B ratio of 23.35, the current P/B ratio is about 159.95% higher. Palantir Technologies Inc (PLTR) has a Forward Free Cash Flow (FCF) yield of approximately 0.45%. Compared to its 3-year average FCF yield of 0.96%, the current FCF yield is approximately -53.24% lower. Relative to its 5-year average FCF yield of 0.85% , the current FCF yield is about -47.02% lower.
60.70
P/B
Median3y
28.04
Median5y
23.35
0.45
FCF Yield
Median3y
0.96
Median5y
0.85
Competitors Valuation Multiple
The average P/S ratio for PLTR's competitors is 21.01, providing a benchmark for relative valuation. Palantir Technologies Inc Corp (PLTR) exhibits a P/S ratio of 69.88, which is 232.53% above the industry average. Given its robust revenue growth of 62.79%, this premium appears sustainable.
Performance Decomposition
1Y
3Y
5Y
Market capitalization of PLTR increased by 117.86% over the past 1 year. The primary factor behind the change was an increase in Margin Expansion from 20.58 to 40.37.
The secondary factor is the Revenue Growth, contributed 62.79%to the performance.
Overall, the performance of PLTR in the past 1 year is driven by Margin Expansion. Which is more sustainable.
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Frequently Asked Questions
Is Palantir Technologies Inc (PLTR) currently overvalued or undervalued?
Palantir Technologies Inc (PLTR) is now in the Overvalued zone, suggesting that its current forward PE ratio of 180.88 is considered Overvalued compared with the five-year average of 117.73. The fair price of Palantir Technologies Inc (PLTR) is between 48.26 to 163.69 according to relative valuation methord. Compared to the current price of 179.30 USD , Palantir Technologies Inc is Overvalued By 9.53% .
What is Palantir Technologies Inc (PLTR) fair value?
PLTR's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Palantir Technologies Inc (PLTR) is between 48.26 to 163.69 according to relative valuation methord.
How does PLTR's valuation metrics compare to the industry average?
The average P/S ratio for PLTR's competitors is 21.01, providing a benchmark for relative valuation. Palantir Technologies Inc Corp (PLTR) exhibits a P/S ratio of 69.88, which is 232.53% above the industry average. Given its robust revenue growth of 62.79%, this premium appears sustainable.
What is the current P/B ratio for Palantir Technologies Inc (PLTR) as of Jan 07 2026?
As of Jan 07 2026, Palantir Technologies Inc (PLTR) has a P/B ratio of 60.70. This indicates that the market values PLTR at 60.70 times its book value.
What is the current FCF Yield for Palantir Technologies Inc (PLTR) as of Jan 07 2026?
As of Jan 07 2026, Palantir Technologies Inc (PLTR) has a FCF Yield of 0.45%. This means that for every dollar of Palantir Technologies Inc’s market capitalization, the company generates 0.45 cents in free cash flow.
What is the current Forward P/E ratio for Palantir Technologies Inc (PLTR) as of Jan 07 2026?
As of Jan 07 2026, Palantir Technologies Inc (PLTR) has a Forward P/E ratio of 180.88. This means the market is willing to pay $180.88 for every dollar of Palantir Technologies Inc’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Palantir Technologies Inc (PLTR) as of Jan 07 2026?
As of Jan 07 2026, Palantir Technologies Inc (PLTR) has a Forward P/S ratio of 69.88. This means the market is valuing PLTR at $69.88 for every dollar of expected revenue over the next 12 months.