Palantir Technologies is stepping up its healthcare ambitions through a new multi-year agreement with OneMedNet, bringing its Artificial Intelligence Platform to the forefront of transforming how clinical data is accessed and analyzed. This move expands Palantir’s footprint well beyond its roots in government work and targets scalable, recurring revenue opportunities across healthcare and life sciences.
See our latest analysis for Palantir Technologies.
After an incredible run that saw its 1-year total shareholder return soar more than 300%, Palantir’s latest partnerships and technical wins have sustained the positive buzz. However, short-term share price momentum has cooled slightly since recent highs. Big deals in government, healthcare, and commercial AI, together with significant top-line growth, indicate the company’s operational momentum remains strong and investor appetite is bullish for the long term.
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With Palantir’s valuation now at historic highs and its revenue guidance accelerating, the spotlight is on whether all this growth is already reflected in the stock price or if there is a real buying opportunity left for new investors.
Palantir’s market price has surged well above the narrative’s long-term value estimate, suggesting intense optimism is fueling a premium not seen in its past cycles. Below, according to BlackGoat, is a highlight from the most followed narrative on Palantir’s valuation outlook.
Based on a 5-year DCF valuation and very optimistic assumptions, I value Palantir today (Feb 2024) at around $89, while price is above $110. My updated assumptions: Revenue growth of approximately 37% per annum, driven by the company’s expanding footprint in commercial and government sectors. Net profit margins increasing further to 40%, reflecting sustained operational efficiency balanced with growth investments. A future P/E ratio of 70x, assuming Palantir continues to command a premium valuation as a leader in the AI and data analytics space.
Want to know which numbers drive this bold premium? One key: eye-popping profit margins plus a valuation multiple that would make even big tech blush. Curious how such aggressive growth and profitability projections fuel this high price target? The answers may surprise you. Dive in for the full playbook behind this narrative.
Result: Fair Value of $89 (OVERVALUED)
Have a read of the narrative in full and understand what’s behind the forecasts.
However, a surprise slowdown in commercial growth or a major government contract setback could quickly disrupt Palantir’s strong valuation narrative.
Find out about the key risks to this Palantir Technologies narrative.
If you see things differently or want to shape your own perspective, you can build a custom narrative in just a few minutes. Do it your way.
A good starting point is our analysis highlighting 2 key rewards investors are optimistic about regarding Palantir Technologies.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PLTR.
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