Palantir (PLTR) Valuation Check After a Huge Share Price Run in 2024

Palantir Technologies (PLTR) keeps drawing attention as its share price continues to swing after a huge run this year, prompting investors to revisit what is actually driving the story at current levels.

See our latest analysis for Palantir Technologies.

After a blistering run this year, Palantir’s latest share price of $187.54 reflects a market that is pausing to reassess expectations. This comes even as its year to date share price return of 149.42 percent and three year total shareholder return of 2,575.32 percent point to powerful, but increasingly scrutinised, momentum.

If Palantir’s surge has you rethinking where the next wave of software winners could come from, it might be a good time to explore other high growth tech and AI stocks as potential additions to your watchlist.

With revenue and profits accelerating but the share price already above Wall Street’s target, the big question now is whether Palantir is still trading below its true potential or if the market has fully priced in future growth.

Most Popular Narrative Narrative: 21.8% Overvalued

According to BlackGoat, the narrative fair value of $153.97 sits well below Palantir’s $187.54 share price, which frames today’s debate around stretched expectations.

Palantir remains an exceptional company with groundbreaking technology and a clear mission. I have high conviction in its long-term potential and believe it could evolve into another Salesforce, Oracle, or SAP. However, even when factoring in flawless execution and strong future growth, the stock appears overvalued following recent price surges.

Read the complete narrative.

Curious how a business projected to grow revenue fast, expand margins sharply, and still command a premium earnings multiple ends up labeled overvalued? Read the narrative for the full playbook.

Result: Fair Value of $153.97 (OVERVALUED)

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

However, slowing commercial uptake or a sharp derating in richly valued AI peers could quickly challenge the conviction behind Palantir’s stretched multiple.

Find out about the key risks to this Palantir Technologies narrative.

Build Your Own Palantir Technologies Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a fresh narrative in just a few minutes: Do it your way

A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Palantir Technologies.

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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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