Assessing Planet Labs (PL) Valuation After Major Defense Contract Renewal and Growing Government Partnerships

Planet Labs PBC (PL) reported the renewal of a sizable contract with an established international defense and intelligence partner, securing an 8-figure deal for their high-resolution imagery services. The agreement underscores the company's continuing traction in the defense space.

See our latest analysis for Planet Labs PBC.

Planet’s renewed deal caps off a breakout stretch, with the 90-day share price return rocketing 92.6% and the year-to-date move surging to 222.7%. Steady wins like these, on the back of multiple fresh government contracts, have sent total shareholder return soaring nearly 391% over the last year. This highlights major momentum as confidence in the business trajectory builds.

If Planet’s strong run in the defense world has you looking for more sector standouts, check out See the full list for free.

After such a meteoric rise, the real question for investors is whether Planet Labs PBC remains undervalued with more upside to capture, or if the market has already factored in all that future growth. Is there still a buying opportunity here, or has the stock's rally run its course?

Most Popular Narrative: 13.3% Overvalued

Planet Labs PBC’s most widely followed narrative sees the fair value at $11.31, meaning the stock’s recent $12.81 close trades noticeably above this figure. This price gap raises questions about what is driving such bullish sentiment and sets the stage for a closer look at the story behind the number.

Planet Labs leads the EO market with the largest satellite constellation and is poised to capitalize on the growing demand for Earth Observation and geospatial data from companies and governments. Plunging space launch and GPU computation costs, combined with advancements in CubeSat and AI technologies, are boosting the utility of Earth Observation data.

Read the complete narrative.

Curious what’s behind the valuation jump? The linchpin of this thesis is a set of eye-catching sales growth and future profit margin assumptions you’ll want to see for yourself. Wonder which seismic industry shifts this narrative is betting on? The answer could surprise you. Find out what really supports this pricing logic by diving into the full analysis.

Result: Fair Value of $11.31 (OVERVALUED)

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

However, any disruption to government contract renewals or slower adoption of commercial satellite data could challenge the bullish valuation story of Planet Labs PBC.

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

Build Your Own Planet Labs PBC Narrative

If you see the story differently or want to dig into the numbers yourself, you can shape your own view 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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