Planet Labs (PL): Evaluating Valuation Following Expanded Satellite Fleet and Next-Gen Imaging Capabilities

Planet Labs PBC (PL) just shared that its new AI-powered Pelican-5 and Pelican-6 satellites, as well as 36 fresh SuperDoves, are officially in orbit. All eyes are on what this means for Planet's edge in satellite imagery and data services.

See our latest analysis for Planet Labs PBC.

Momentum has swung decisively in Planet Labs' favor over the past year, with the company’s innovative launches coinciding with a total shareholder return of 202.8%. This signals that investors are embracing its growth story. After a significant rally year-to-date, shorter-term returns have cooled off, but the 67.8% share price return for the past quarter shows market enthusiasm is still strong as the company pushes the boundaries of satellite technology.

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With such explosive growth in both share price and technology, the real question for investors is whether Planet Labs still has room to run or if all its future potential is already reflected in the current valuation.

Most Popular Narrative: 5.2% Overvalued

Planet Labs’ narrative fair value sits just below the last close, suggesting the stock could be priced beyond its actual near-term potential. The current market exuberance meets a more cautious outlook, hinting that elevated expectations might not square with fundamental forecasts.

Planet Labs' equity stakes in startups utilizing its data for innovative EO-based products signal potential for additional growth and indirect exposure to the burgeoning EO startup market. The Earth Observation industry is poised for a period of high growth, with Planet Labs maintaining a leading position in the market.

Read the complete narrative.

Curious what growth assumptions could justify this premium? The narrative relies on accelerated revenue and profit expansion, plus a vision of new satellite data use cases. Find out what other bold projections are shaping this high-stakes valuation debate.

Result: Fair Value of $11.31 (OVERVALUED)

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

However, slower commercial adoption or unexpected delays in major government contracts could quickly challenge the optimism surrounding Planet Labs' current valuation.

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

Build Your Own Planet Labs PBC Narrative

If you see things differently or want to dig into the numbers yourself, it only takes a few minutes to put together your own perspective. 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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