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

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

484% Premium TTM fundamentals · sector averages from covered peers

PLTR trades at 307.8× TTM earnings — a 484% premium to its Technology sector average of 52.7× in our coverage.

The Numbers

P/E (TTM)

307.8×

Sector avg: 52.7×

P/S (TTM)

81.0×

Sector avg: 12.3×

Market Cap

$315.45B

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)	P/S (TTM)	Market Cap
PLTR This page	$132.35	307.8×	81.0×	$315.45B
NVDA NVIDIA Corporation	$202.77	50.2×	26.3×	$4.93T
AAPL Apple Inc.	$333.66	42.2×	11.2×	$4.90T
MSFT Microsoft Corporation	$393.89	24.6×	9.6×	$2.92T
AVGO Broadcom Inc.	$370.92	77.8×	27.5×	$1.76T
AMD Advanced Micro Devices Inc.	$495.65	187.0×	23.3×	$808.11B
INTC Intel Corporation	$94.98	—	9.0×	$474.44B
CSCO Cisco Systems Inc.	$111.92	43.2×	7.7×	$442.21B
ORCL Oracle Corporation	$126.41	29.3×	6.2×	$363.31B
TXN Texas Instruments Inc.	$283.97	52.1×	14.6×	$257.72B
QCOM Qualcomm Inc.	$171.79	34.7×	4.1×	$183.30B
CRM Salesforce Inc.	$170.83	24.8×	4.1×	$160.07B
ADBE Adobe Inc.	$237.22	14.2×	4.1×	$97.38B

Is the Premium Justified?

July 12, 2026

Palantir Technologies Inc. trades at a substantial trailing twelve-month (TTM) P/E of 294.7x, representing a significant premium over the Technology sector average of 76.4x. This elevated multiple reflects high investor expectations for future growth, primarily driven by its specialized data analytics and artificial intelligence platforms for both government and commercial clients. Palantir has a strong track record of securing large federal contracts, including over $1.9 billion from the U.S. government since 2008, with recent deals like a $1.3 billion DoD contract for AI tools. In Q1 2026, federal government contracts generated $687 million, an 84% year-over-year increase, surpassing domestic commercial revenue. The company's Gotham and Foundry platforms are critical for managing complex datasets and AI/ML capabilities for agencies. While the company has faced scrutiny regarding privacy and surveillance, its robust government partnerships and expanding commercial footprint in AI-driven solutions appear to justify the market's optimistic growth projections, despite its relatively small size.

Sources

Frequently Asked Questions

Is PLTR overvalued or undervalued?

On trailing-twelve-month earnings, PLTR trades at 307.8x versus a Technology sector average of 52.7x in our coverage — a 483.6% 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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