Palantir Technologies Stock To $259?
Palantir Technologies (PLTR) stock has jumped 13% during the past week, and is currently trading at $198.81. Our machine-driven multi-factor assessment suggests that it may be time to buy more shares of PLTR stock. We have, overall, a positive view of the stock, and a price of $259 may not be out of reach. We believe there is not much to fear in PLTR stock given its overall Very Strong operating performance and financial condition. Hence, despite its Very High valuation, the stock appears Attractive but Volatile.
Below is our assessment:
| CONCLUSION | |
|---|---|
| What you pay: | |
| Valuation | Very High |
| What you get: | |
| Growth | Very Strong |
| Profitability | Strong |
| Financial Stability | Very Strong |
| Downturn Resilience | Moderate |
| Operating Performance | Very Strong |
| Stock Opinion | Attractive but Volatile |
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Let’s get into details of each of the assessed factors but before that, for quick background: With $470 Bil in market cap, Palantir Technologies provides software platforms that help U.S. intelligence identify hidden patterns in data and support counterterrorism investigations and operational collaboration.
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[1] Valuation Looks Very High
| PLTR | S&P 500 | |
|---|---|---|
| Price-to-Sales Ratio | 136.8 | 3.3 |
| Price-to-Earnings Ratio | 616.6 | 23.7 |
| Price-to-Free Cash Flow Ratio | 275.5 | 21.0 |
This table highlights how PLTR is valued vs broader market. For more details see: PLTR Valuation Ratios
[2] Growth Is Very Strong
- Palantir Technologies has seen its top line grow at an average rate of 25.7% over the last 3 years
- Its revenues have grown 39% from $2.5 Bil to $3.4 Bil in the last 12 months
- Also, its quarterly revenues grew 48.0% to $1.0 Bil in the most recent quarter from $678 Mil a year ago.
| PLTR | S&P 500 | |
|---|---|---|
| 3-Year Average | 25.7% | 5.3% |
| Latest Twelve Months* | 38.8% | 5.2% |
| Most Recent Quarter (YoY)* | 48.0% | 6.4% |
This table highlights how PLTR is growing vs broader market. For more details see: PLTR Revenue Comparison
[3] Profitability Appears Strong
- PLTR last 12 month operating income was $570 Mil representing operating margin of 16.6%
- With cash flow margin of 50.3%, it generated nearly $1.7 Bil in operating cash flow over this period
- For the same period, PLTR generated nearly $763 Mil in net income, suggesting net margin of about 22.2%
| PLTR | S&P 500 | |
|---|---|---|
| Current Operating Margin | 16.6% | 18.8% |
| Current OCF Margin | 50.3% | 20.4% |
| Current Net Income Margin | 22.2% | 12.7% |
This table highlights how PLTR profitability vs broader market. For more details see: PLTR Operating Income Comparison
[4] Financial Stability Looks Very Strong
- PLTR Debt was $238 Mil at the end of the most recent quarter, while its current Market Cap is $470 Bil. This implies Debt-to-Equity Ratio of 0.05%
- PLTR Cash (including cash equivalents) makes up $6.0 Bil of $7.4 Bil in total Assets. This yields a Cash-to-Assets Ratio of 81.5%
| PLTR | S&P 500 | |
|---|---|---|
| Current Debt-to-Equity Ratio | 0.1% | 21.1% |
| Current Cash-to-Assets Ratio | 81.5% | 6.9% |
[5] Downturn Resilience Is Moderate
PLTR saw an impact slightly worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.
2022 Inflation Shock
- PLTR stock fell 84.6% from a high of $39.00 on 27 January 2021 to $6.00 on 27 December 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 3 October 2024
- Since then, the stock increased to a high of $198.81 on 29 October 2025 $198.81
| PLTR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -84.6% | -25.4% |
| Time to Full Recovery | 646 days | 464 days |
2020 Covid Pandemic
- PLTR stock fell 22.5% from a high of $29.05 on 25 November 2020 to $22.51 on 2 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
- However, the stock fully recovered to its pre-Crisis peak by 22 January 2021
| PLTR | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -22.5% | -33.9% |
| Time to Full Recovery | 51 days | 148 days |
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read PLTR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – S&P 500, Russell, and S&P midcap. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.