Palantir Technologies Inc. (PLTR) Fair Value & PE Analysis
Software - Infrastructure · NASDAQ
Current Price
$127.99
PE Ratio (TTM)
134.3x
Intrinsic Value
$79.6
-60.8% margin of safety
What Is Palantir Technologies Inc.'s Fair Value?
As of 2026-06-12, applying a 50.0x earnings multiple to Palantir Technologies Inc.'s (PLTR) earnings per share of $0.95 yields a fair value estimate of $79.6 per share, versus a market price of $127.99.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $69.32 to $91.05. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How our PE model works · Recalculate in PE mode · PLTR intrinsic value (DCF view)
Is Palantir Technologies Inc. (PLTR) Overvalued?
At $127.99, PLTR trades above its PE-based fair value estimate, meaning the market pays a premium over the applied earnings multiple. By this model the stock looks expensive unless earnings grow into the price.
COMPETITIVE MOAT
↑AI Platform Integration
Palantir's AIP platform integrates with major cloud providers like Google Cloud. This deep integration creates stickiness for clients adopting their AI solutions.
↑Government Data Expertise
Decades of experience handling sensitive government data builds trust and deep domain knowledge. This makes switching to competitors difficult for national security clients.
↑Proprietary Data Operating System
Palantir's unique data operating system, Foundry, offers a powerful, integrated environment. This proprietary technology is difficult for others to replicate quickly.
INVESTMENT RISKS
↓Customer Concentration
Heavy reliance on a few large government contracts poses a risk. Loss of a major client could significantly impact revenue and growth.
↓Intense AI Competition
The AI software market is highly competitive with giants like Google and emerging players. Palantir faces constant pressure to innovate and maintain its edge.
↓Sales Cycle Length
Long and complex sales cycles, especially for enterprise and government deals, can lead to unpredictable revenue streams. This makes forecasting challenging.
Base case
PLTR base case PE valuation
Intrinsic Value
$79.6
Margin of safety
-60.8%
Expected annual return
-9.1%
Base case assumptions: 20.0% annual earnings growth, 50x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the PLTR PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Palantir Technologies Inc. respond.
Open PE Calculator for PLTRCompany Overview
Palantir Technologies Inc. engineers and deploys advanced software platforms primarily for the intelligence community, supporting counterterrorism investigations and operations across the United States, the United Kingdom, and internationally. One such product is Palantir Gotham, a sophisticated software system that enables users to uncover hidden patterns within diverse datasets, from signals intelligence to confidential informant reports. Gotham also facilitates the seamless handover between analysts and operational personnel, helping operators strategize and execute real-world responses to threats pinpointed within the platform. The company also offers Palantir Foundry, a platform that revolutionizes organizational operations by providing a central data operating system, allowing individual users to integrate and analyze their essential data in one cohesive environment. Additionally, Palantir provides Apollo, a software solution for delivering applications and updates across an enterprise, enabling clients to deploy their software in virtually any setting. Its Palantir Artificial Intelligence Platform (AIP) offers unified access to open-source, self-hosted, and commercial large language models (LLMs). AIP excels at transforming both structured and unstructured data into LLM-understandable objects, converting an organization's actions and processes into practical tools for human operators and LLM-driven agents alike. Founded in 2003, Palantir Technologies Inc. maintains its headquarters in Denver, Colorado.
Financial Metrics — PLTR PE Stock Valuation Data
PE Ratio (TTM)
134.3x
PEG Ratio
0.47
Earnings Yield
0.74%
ROE (TTM)
32.2%
Revenue/Share (TTM)
$2.18
Debt/Equity
0.03x
Frequently Asked Questions
What is the PE ratio of PLTR?
The trailing twelve-month PE ratio of PLTR reflects how much investors pay per dollar of Palantir Technologies Inc.'s earnings. This metric is most useful when compared to Software - Infrastructure peers and the company's own historical range.
Is PLTR overvalued based on PE ratio?
PLTR's PE of 134.3x combined with a PEG ratio of 0.47 provides a growth-adjusted perspective. A PEG below 1.0 suggests PLTR may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Software - Infrastructure, a DCF analysis may be more appropriate.
How do I value PLTR stock using PE ratio?
To value Palantir Technologies Inc. using PE: (1) Compare the current PE (134.3x) against the Software - Infrastructure median to assess relative pricing, (2) check the PEG ratio (0.47) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of PLTR?
PLTR's PEG ratio is 0.47, calculated by dividing the PE ratio (134.3x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for PLTR stock valuation?
PE ratio gives a quick relative read — how PLTR is priced versus Software - Infrastructure peers. DCF provides an absolute value based on projected free cash flows. For PLTR, with a strong ROE of 32.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See PLTR DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Technology valuationsP/E and DCF value PLTR with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.