Highly Regarded

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

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

699% Premium TTM fundamentals · sector averages from covered peers

PLTR trades at 433.3× TTM earnings — a 699% premium to its Technology sector average of 54.2× in our coverage.

The Numbers

P/E (TTM)

433.3×

Sector avg: 54.2×

P/S (TTM)

114.0×

Sector avg: 12.8×

Market Cap

$444.08B

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 $186.32 433.3×
NVDA $220.92 54.7×
AAPL $316.83 40.1×
MSFT $507.14 31.7×
AVGO $370.45 77.7×
AMD $470.95 177.7×
INTC $89.54 —
CSCO $110.47 42.7×
ORCL $149.14 34.5×
CRM $257.65 37.4×
TXN $260.82 47.9×
QCOM $170.46 34.4×
ADBE $292.76 17.5×

Is the Premium Justified?

August 30, 2026

Palantir Technologies commands a substantial P/E multiple of 433.1x, significantly above the Technology sector average of 85.4x. This premium reflects strong investor confidence in its specialized data analytics and AI platforms, particularly within government and defense sectors. The company secured over $1 billion in U.S. government contracts in fiscal year 2026, including a $10 billion, 10-year agreement with the U.S. Army. Q1 2026 US government revenue grew 84% year-over-year, leading to a raised full-year 2026 revenue guidance. Its critical role in AI initiatives like the Pentagon's Maven project and expanding commercial applications underscore its perceived high growth potential and strategic importance, justifying the elevated valuation.

Sources

Frequently Asked Questions

Is PLTR overvalued or undervalued?
On trailing-twelve-month earnings, PLTR trades at 433.3x versus a Technology sector average of 54.2x in our coverage — a 699.3% 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.

Keep Digging on PLTR

Palantir Technologies Inc. Overview

Price, chart, analysis & financials

PLTR: Overbought or Oversold?

Updated daily

PLTR: Why Is It Moving?

Updated daily

PLTR: Price Prediction

Updated daily

Same question, Technology peers

QCOM AAPL AMD NVDA INTC ORCL