Highly Regarded

Is Palantir Technologies Inc. (PLTR) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Technology sector peers in our coverage

459% Premium TTM fundamentals · sector averages from covered peers

PLTR trades at 308.2× TTM earnings — a 459% premium to its Technology sector average of 55.1× in our coverage.

The Numbers

P/E (TTM)

308.2×

Sector avg: 55.1×

P/S (TTM)

81.1×

Sector avg: 12.8×

Market Cap

$315.88B

EPS (TTM): $0.43

Revenue (TTM)

$3.90B

Net income: $1.10B

Technology Peer Comparison

How PLTR's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
PLTR This page $132.53 308.2×
NVDA $195.52 48.4×
AAPL $312.73 39.6×
MSFT $386.79 24.2×
AVGO $373.72 78.3×
AMD $551.70 208.2×
INTC $122.14 —
CSCO $113.98 44.0×
ORCL $143.82 33.3×
TXN $303.53 55.7×
QCOM $186.38 37.7×
CRM $165.63 24.0×
ADBE $218.11 13.1×

Is the Premium Justified?

July 6, 2026

Palantir Technologies' P/E multiple of 308.3x, a substantial premium to the Technology sector average of 76.3x, is largely justified by its explosive growth and strategic positioning in AI and data analytics. The company reported Q1 2026 revenue growth of 85% year-over-year, driven by significant increases in both U.S. commercial (133%) and government (84%) segments. Palantir has consistently beaten earnings and revenue expectations for 11 consecutive quarters and raised its full-year 2026 revenue guidance, implying robust future growth. Its unique AI platform and numerous high-value government contracts, including with the U.S. Army and UK's NHS, underscore its critical role in institutional infrastructure. While concerns regarding data handling and transparency exist in some public sector engagements, the strong demand for its AI solutions and impressive profitability metrics support this premium valuation.

Sources

Frequently Asked Questions

Is PLTR overvalued or undervalued?
On trailing-twelve-month earnings, PLTR trades at 308.2x versus a Technology sector average of 55.1x in our coverage — a 459% premium. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing PLTR with its own Technology peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Technology names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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QCOM NVDA ORCL ADBE TXN MSFT