Palantir Stock: Is It Finally Fairly Valued?

Summary

  • I'm sharing with you the updated results of my improved Sum-Of-The-Parts valuation model of Palantir Technologies Inc. stock that I developed 5 articles ago.
  • Sales growth justifies the current valuation of Palantir stock. But that is the only excuse for the bulls.
  • I will show you the difference between a quality company and Palantir using Microsoft stock, among others, as an example.
  • I reiterate my sell rating on Palantir stock and do not recommend anyone buy it at current prices.
  • Looking for a helping hand in the market? Members of Beyond the Wall Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Annual Allen And Co. Meeting In Sun Valley Draws CEO"s And Business Leaders To The Mountain Resort Town

Drew Angerer

Intro & Thesis

Palantir Technologies Inc. (NYSE:PLTR) has >191K followers here on Seeking Alpha, most of whom I assume are quite bullish on this stock. Investor demand for confirmation has created a large supply of analysis materials here (in the

Author's calculations, based on PLTR's filings

Author's calculations, based on PLTR's filings

Chart
Data by YCharts

Author's calculations, sensitivity table of the SOTP model

Author's calculations, sensitivity table of the SOTP model

Twitter [@FundamentEdge]

Twitter [@FundamentEdge]

Chart
Data by YCharts

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This article was written by

Danil Sereda profile picture
3.33K Followers
Discover What Wall Street Is Buying

Chief investment analyst at a small Singapore-registered family office. Mainly focused on special situations, IPOs, and undercovered/hidden stocks.


BS in Finance. In my bachelor's thesis, I looked at finding the best statistical/machine learning methods to predict underpricing of Initial Public Offerings (IPOs). A brief summary of my findings: using the KNN method, you could add about 24% of alpha compared to the average return of each initial public offer. In other words, with the AI algorithm I developed, it was possible to distinguish good IPOs from bad IPOs, where the average underpricing of selected companies in the test sample was 64.5%, while the overall average underpricing would be only 41.39%. More can be found here.


Ranked in the top 4% of financial bloggers by Tipranks (as of June 17, 2022, compared to the S&P 500 Index over a 1-year period). 


**Disclaimer: Associated with Oakoff Investments, another Seeking Alpha Contributor

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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