Highly Regarded

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

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

718% Premium TTM fundamentals · sector averages from covered peers

PLTR trades at 466.2× TTM earnings — a 718% premium to its Technology sector average of 57.0× in our coverage.

The Numbers

P/E (TTM)

466.2×

Sector avg: 57.0×

P/S (TTM)

122.6×

Sector avg: 13.1×

Market Cap

$477.83B

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 $200.48 466.2×
NVDA $217.23 53.8×
AAPL $341.95 43.3×
MSFT $539.24 33.7×
AVGO $344.31 72.2×
AMD $562.16 212.1×
INTC $95.36 —
CSCO $109.85 42.4×
ORCL $134.50 31.1×
TXN $279.15 51.2×
CRM $246.71 35.8×
QCOM $178.39 36.0×
ADBE $251.65 15.1×

Is the Premium Justified?

October 4, 2026

Palantir Technologies' P/E of 439.0x, a substantial premium over the sector average of 91.7x, is justified by its explosive growth trajectory. The company reported a 93% year-over-year revenue increase in Q2 2026, driven by surging demand for its Artificial Intelligence Platform (AIP). U.S. commercial revenue, a key growth driver, soared 149% year-over-year, and is projected to surpass government revenue by 2026. Palantir has raised its full-year 2026 revenue guidance to 82% growth, supported by a formidable backlog in its commercial segment. While the valuation is high, it reflects market expectations for continued rapid expansion and improving profitability in the burgeoning AI software market.

Sources

Frequently Asked Questions

Is PLTR overvalued or undervalued?
On trailing-twelve-month earnings, PLTR trades at 466.2x versus a Technology sector average of 57.0x in our coverage — a 718.2% 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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