A Fresh Look at Planet Labs (PL) Valuation Following Strong Q2 Results and Satellite Launches

If you’ve been keeping tabs on Planet Labs PBC (PL) lately, it’s tough to ignore the flurry of news giving investors plenty to consider. The company just released its second quarter earnings, delivering not only a healthy year-on-year increase in revenue but also a sharply narrowed net loss. For many investors, these results help paint a picture of a business making meaningful progress. In addition, the launch of their new Pelican-3 and Pelican-4 satellites and updated guidance projecting ongoing revenue growth make it clear why PL has landed on more watchlists.

Looking back over the past year, Planet Labs PBC’s stock price has climbed about 4%, with most of the momentum gathering over the past month and throughout the past three months. The positive developments come from both the financial and operational side, as revenue is up, losses are shrinking, and the company’s latest satellites demonstrate its ability to execute ambitious technology plans. The market appears to be responding to these signals, as investors try to weigh the pace of improvement against the remaining risks.

With tangible progress now showing up in both the earnings and the operational updates, the question is whether the current share price still offers value to those eyeing growth, or if the market has already priced in Planet Labs PBC’s next chapter.

Most Popular Narrative: 14.6% Undervalued

The prevailing narrative sees Planet Labs as undervalued, with a fair value above current levels. This view is based on strong projected growth and leading market position.

Planet Labs leads the EO market with the largest satellite constellation. The company is positioned to capitalize on the growing demand for Earth Observation and geospatial data from companies and governments.

Wondering what is driving this surge in optimism? The fair value calculation behind this narrative quietly relies on aggressive growth forecasts and profit margins more often seen in top-performing tech disruptors. What are the bold numbers and hidden assumptions setting this stock apart in the race to space? Read on to discover the figures that might push Planet Labs into a higher orbit.

Result: Fair Value of $11.31 (UNDERVALUED)

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

However, shifting demand in Earth Observation or delays in scaling commercial contracts could challenge Planet Labs' path to sustained growth.

Find out about the key risks to this Planet Labs PBC narrative.

Another View: What Do Market Ratios Tell Us?

While growth forecasts suggest upside, another look at Planet Labs’ current market value using industry-standard price-to-sales ratios presents a much less optimistic picture. Could the market, in fact, be overestimating the company’s prospects?

See what the numbers say about this price — find out in our valuation breakdown.

Stay updated when valuation signals shift by adding Planet Labs PBC to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own Planet Labs PBC Narrative

If this perspective does not quite fit your outlook or you want to follow your own research path, there is always the opportunity to craft a personalized take in just a few minutes. Do it your way.

A great starting point for your Planet Labs PBC research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.

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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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