Planet Labs (PL): Assessing Valuation After Pelican-3 and Pelican-4 Satellite Expansion

Planet Labs PBC (PL) recently revealed the successful launch and commissioning of its Pelican-3 and Pelican-4 satellites. Both are equipped with high-resolution sensors and AI-driven processing, made possible by a partnership with NVIDIA. These latest additions to the Pelican fleet expand the company’s commercial satellite constellation and demonstrate an increased capacity to deliver actionable insights to customers more rapidly. For investors, this milestone stands out as it suggests strategic follow-through on product development and an ability to scale up to meet customer demand for quality imagery and faster data.

This news comes alongside a surge in Planet Labs PBC’s stock price, with shares up nearly 8% year-to-date and showing an increase of more than 84% over the past three months. While growth has accelerated recently, there has been significant volatility over the past year, with momentum sometimes fading before this latest boost. The launch may strengthen the longer-term case as Planet seeks to establish a place in high-value geospatial data services amid competition and shifting investor risk appetites.

With the stock moving higher after this product breakthrough, questions remain about whether the market is underestimating Planet’s future earnings potential, or if investor enthusiasm has already priced in the next phase of growth.

Most Popular Narrative: 37.4% Undervalued

According to the narrative by andreas_eliades, Planet Labs PBC is seen as significantly undervalued, with the stock price estimated to be trading at a notable discount to its true worth. The fair value assessment is based on optimistic expectations for market leadership and sector growth.

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

The Earth Observation industry is expected to experience a period of high growth, with Planet Labs maintaining a leading position in the market.

Curious why so many see Planet Labs as a sleeper hit in the space revolution? The narrative combines bold assumptions about industry leadership with striking future projections. Explore which growth metrics and margin forecasts are influencing its estimated valuation to reach these levels—there is more to this story than meets the eye.

Result: Fair Value of $11.31 (UNDERVALUED)

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

However, persistent net losses and dependence on government contracts could challenge the optimistic outlook if commercial adoption does not accelerate as expected.

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

Another View: DCF Tells a Different Story

Taking a step back from market optimism, our DCF model paints a less exuberant but still positive outlook. It suggests Planet Labs may indeed be undervalued, but this is based on more modest, cash flow-driven estimates. Does this more grounded view point to untapped upside, or does it indicate that expectations need to be adjusted?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Planet Labs PBC for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own Planet Labs PBC Narrative

If you have your own perspective or want to dig deeper into the numbers, you can shape your own unique view in just a few minutes. Do it your way.

A great starting point for your Planet Labs PBC research is our analysis highlighting 3 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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