<div id="readability-page-1"><div><ul> <li>If you are wondering whether Palantir Technologies' share price still makes sense after a strong run, this article will walk through what the current market price could be implying about its value.</li> <li>Palantir's stock last closed at US$151.86, with returns of 87.0% over the past year, while showing a 7 day return of 8.5% decline, a 30 day return of 16.0% decline, and a year to date return of 9.5% decline.</li> <li>Recent news coverage has focused on Palantir's role in large scale data analytics and its contracts with government and commercial customers, which often shapes how investors think about its growth runway and risk profile. At the same time, commentary around the broader software sector and interest in data focused companies has provided extra context for the stock's sharp moves.</li> <li>On our valuation checks, Palantir scores 0 out of 6 for being undervalued. You can see this in more detail in our valuation score. Next, we will look at the usual methods investors use to assess this before finishing with a different way to think about what the current price might be telling you.</li> </ul> Palantir Technologies scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. <h3>Approach 1: Palantir Technologies Discounted Cash Flow (DCF) Analysis</h3> A Discounted Cash Flow model takes estimated future cash flows, then discounts them back to today to get an implied value per share. It is essentially asking what Palantir Technologies' future cash generation could be worth in today's dollars. For Palantir, the model used is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections. The latest twelve month Free Cash Flow is about $1.79b. Analysts have provided explicit Free Cash Flow estimates out to 2030, such as $2.77b in 2026 and $10.36b in 2030, with further years extrapolated by Simply Wall St beyond those analyst inputs. After discounting these projected cash flows back to today, the DCF model arrives at an estimated intrinsic value of $95.62 per share. Compared with the recent share price of $151.86, this implies the stock is about 58.8% overvalued on this set of assumptions. On this model, the current price already embeds very optimistic expectations. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests Palantir Technologies may be overvalued by 58.8%. Discover 866 undervalued stocks or create your own screener to find better value opportunities. <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f8e4a674-51cb-4764-b739-5058e13a50ef/chart/dcf?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f8e4a674-51cb-4764-b739-5058e13a50ef/chart/dcf"/><figcaption>PLTR Discounted Cash Flow as at Jan 2026</figcaption></figure> Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Palantir Technologies. <h3>Approach 2: Palantir Technologies Price vs Book</h3> For profitable, asset light software companies, the price to book, or P/B, ratio is often used alongside cash flow work because it shows how much investors are paying relative to the equity on the balance sheet. In general, the higher a company’s expected growth and the lower its perceived risk, the higher the “normal” or “fair” valuation multiple investors might accept. The opposite tends to be true for slower growth or higher risk profiles. Palantir is currently trading on a P/B of 54.92x. That is well above the Software industry average P/B of 3.24x and also higher than the peer group reference of 37.85x. On simple comparisons, the market is paying a much richer price for Palantir’s equity base than for the average software stock. Simply Wall St’s Fair Ratio is a proprietary estimate of what a more appropriate P/B might be for Palantir, based on factors such as its earnings growth profile, industry, profit margins, market cap and stock specific risks. This tends to be a more tailored yardstick than a straight industry or peer comparison, because it adjusts for Palantir’s own fundamentals instead of assuming it should trade like the average company. As the Fair Ratio is not available here, the P/B comparison alone points to the shares looking expensive on this metric. Result: OVERVALUED <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f8e4a674-51cb-4764-b739-5058e13a50ef/chart/pb-multiple-vs-industry?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f8e4a674-51cb-4764-b739-5058e13a50ef/chart/pb-multiple-vs-industry"/><figcaption>NasdaqGS:PLTR P/B Ratio as at Jan 2026</figcaption></figure> P/B ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1414 companies where insiders are betting big on explosive growth. <h3>Upgrade Your Decision Making: Choose your Palantir Technologies Narrative</h3> Earlier we mentioned that there is an even better way to understand valuation, so this is where Narratives come in as a simple way to link your view of Palantir Technologies to the numbers. A Narrative is your story about the company, expressed through your own assumptions for fair value, future revenue, earnings and margins, rather than just accepting a single model output. On Simply Wall St, Narratives live in the Community page and connect three pieces: what you think Palantir is doing in the real world, how that feeds into a financial forecast, and what that implies for a fair value that you can compare to the current share price when you are deciding whether to buy, hold or sell. Because Narratives update as new information like earnings releases or major news is added, your Palantir view stays current. You can see, for example, one investor who thinks Palantir is worth far more than US$151.86 while another assigns a fair value well below that level, even though both are using the same shared tools. Do you think there's more to the story for Palantir Technologies? Head over to our Community to see what others are saying! <figure><img height="476" src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f8e4a674-51cb-4764-b739-5058e13a50ef/chart/quote-price?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="746" original-src="https://imageproxy.pbkrs.com/https://images.simplywall.st/company/f8e4a674-51cb-4764-b739-5058e13a50ef/chart/quote-price"/><figcaption>NasdaqGS:PLTR 1-Year Stock Price Chart</figcaption></figure> 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.</div></div>

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Palantir Technologies' stock, currently at $151.86, has seen an 87% return over the past year but has declined by 8.5% in the last week and 16% over the past month. Valuation checks indicate it is overvalued by 58.8% based on a Discounted Cash Flow analysis, with an intrinsic value of $95.62 per share. Additionally, its Price-to-Book ratio of 54.92x significantly exceeds industry averages, suggesting the stock is expensive. Investors are encouraged to consider their own narratives and assumptions regarding Palantir's future performance.

- Palantir Technologies’ stock closed at US$151.86, reflecting an 87.0% annual return, with recent declines of 8.5% over 7 days, 16.0% over 30 days, and 9.5% year-to-date.  
- Valuation checks indicate Palantir is overvalued by 58.8%, with a Discounted Cash Flow analysis estimating intrinsic value at $95.62 per share and a Price-to-Book ratio of 54.92x, far exceeding industry averages.  
- Investors are encouraged to consider their narratives about the company, linking their views to financial forecasts for decision-making on whether to buy, hold, or sell.

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Is It Too Late To Consider Palantir Technologies (PLTR) After Its Strong Share Price Run?