Palantir (PLTR): Exploring Valuation After a 223% Surge in Share Price This Year

Palantir Technologies (PLTR) has seen its stock deliver impressive gains over the past year, with shares up roughly 223%. Investors are taking a closer look at what factors might underpin this momentum, particularly given the broader interest in data analytics and AI-driven companies.

See our latest analysis for Palantir Technologies.

This surge in Palantir’s share price reflects growing optimism about its role in AI and data analytics, and that momentum is still firmly in place. Just look at the company’s 1-year total shareholder return of 322.71%, after notching another solid 17.38% gain over the past 90 days. In both the short and long term, performance has outpaced sector peers, fueling debate about whether the current valuation leaves room for further upside or adds risk if expectations stall.

If you’re curious about other tech stocks building momentum in AI and software, this is an ideal time to explore See the full list for free.

With Palantir’s remarkable run and premium valuation, the big question for investors is clear: is there still upside left in these shares, or has the market already priced in all the future growth?

Most Popular Narrative: 62.6% Overvalued

With Palantir Technologies closing at $181.51 and the narrative’s fair value set at $111.66, the stock sits well above this widely followed benchmark. Investors following the most upvoted narrative are wrestling with whether the market’s optimism can last, especially given the ambitious growth built into the fair value calculation.

Palantir’s financial performance underscores its impressive growth trajectory and operational efficiency. Over the past year, earnings surged by 223%, with a compound annual growth rate (CAGR) of 52.4% over the last five years, highlighting the company’s ability to scale rapidly and capitalise on increasing market demand.

Read the complete narrative.

What is behind this massive valuation gap? The narrative centers on relentless earnings momentum and a future multiple usually reserved for only the market’s most dominant tech stories. Curious about which bold assumptions drive the fair value and why the gap to the current price is so wide? Find out what could justify or challenge these numbers by diving into the full story.

Result: Fair Value of $111.66 (OVERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, any slowdown in revenue growth or a hiccup in government contracts could quickly challenge Palantir’s high valuation and optimistic sentiment.

Find out about the key risks to this Palantir Technologies narrative.

Build Your Own Palantir Technologies Narrative

If you want to check the numbers for yourself or craft a story that fits your own view of Palantir’s future growth, you can build your own perspective in just a few minutes, Do it your way.

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Palantir Technologies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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