WHY PLTR VALUATION ACTUALLY ISN'T AS EXPENSIVE AS YOU THINK
$Palantir Technologies Inc.(PLTR)$
Everyone loves to scream Palantir is expensive -- but that’s just lazy. If all you’re doing is looking at P/S or headline multiples, of course it looks stretched. Spend five minutes on the fundamentals and the story flips.
Earnings are growing twice as fast as revenue -- which is why PEG matters. Palantir (1.6x) is priced no differently than $CRM (1.5x). The difference? Salesforce faces AI disruption, while Palantir already has the platform built for it.
That’s why the Citron short reports was outright idiotic -- they’re looking through an outdated SaaS lens. Palantir isn’t selling software seats or dashboards. It’s embedding itself into the operational core of the digital economy, where AI isn’t just a tool but the system by which decisions are made. U.S. commercial revenue is compounding near 100%, government contracts are expanding into multi-billion-dollar renewals, and customers stay because AIP becomes the coordination layer that makes fractured systems act as one.
And that matters. The new economy isn’t about collecting more data -- every company already has lakes and dashboards. The gap is execution. In healthcare, it’s scheduling staff against real-time patient inflows. In energy, it’s rebalancing grids in response to weather and demand surges. In defense, it’s orchestrating logistics and targeting at insane speeds.
This is why the valuation debate misses the point. A revenue multiple doesn’t capture what happens when an enterprise effectively outsources its nervous system to Palantir’s architecture. Every new deployment lowers marginal cost, unlocks new use cases, and widens the moat competitors would have to cross. That’s not SaaS. It’s infrastructure for decision-making in environments where failure is catastrophic and speed is the edge.
So yes, if you look at it like another SaaS vendor, Palantir screens expensive. But in the context of a digital economy that’s moving from data collection to AI-native execution, it’s one of the few companies already operating at scale. The whole software space is at risk from becoming a commodity. Palantir is priced like a company building the lifeboat for the AI tsunami -- and when you run the math on PEG and CAGR for the next decade, that lifeboat looks a lot less expensive than people think.
Image
For whom haven't open CBA can know more from below:
🏦 Open a CBA today and enjoy privileges of up to SGD 20,000 in trading limit with 0 commission. Trade SG, HK, US stocks as well as ETFs unlimitedly!
Find out more here：
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
