Stock Analysis on Net
Stock Analysis on Net

Palantir Technologies Inc. (NASDAQ:PLTR)

Enterprise Value to FCFF (EV/FCFF)

Microsoft Excel

Free Cash Flow to The Firm (FCFF)

Palantir Technologies Inc., FCFF calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Net income (loss) attributable to common stockholders 462,190 209,825 (373,705) (520,379) (1,166,391)
Net income attributable to noncontrolling interests 5,728 7,550 2,611 — —
Net noncash charges 756,044 488,572 856,048 946,282 1,303,517
Changes in operating assets and liabilities, net of effect of acquisitions (70,097) 6,236 (261,217) (92,052) (433,734)
Net cash provided by (used in) operating activities 1,153,865 712,183 223,737 333,851 (296,608)
Cash paid for interest, net of tax1 — — 4 2,191 11,310
Purchases of property and equipment (12,634) (15,114) (40,027) (12,627) (12,236)
Free cash flow to the firm (FCFF) 1,141,231 697,069 183,714 323,415 (297,534)

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Palantir Technologies Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Palantir Technologies Inc. FCFF increased from 2022 to 2023 and from 2023 to 2024.

Interest Paid, Net of Tax

Palantir Technologies Inc., interest paid, net of tax calculation

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Effective Income Tax Rate (EITR)
EITR1 4.35% 8.32% 21.00% 21.00% 1.07%
Interest Paid, Net of Tax
Cash paid for interest, before tax — — 5 2,774 11,432
Less: Cash paid for interest, tax2 — — 1 583 122
Cash paid for interest, net of tax — — 4 2,191 11,310

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

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2 2024 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 0 × 4.35% = 0

Enterprise Value to FCFF Ratio, Current

Palantir Technologies Inc., current EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Selected Financial Data (US$ in thousands)
Enterprise value (EV) 244,102,173
Free cash flow to the firm (FCFF) 1,141,231
Valuation Ratio
EV/FCFF 213.89
Benchmarks
EV/FCFF, Competitors1
Accenture PLC 27.50
Adobe Inc. 24.50
Cadence Design Systems Inc. 57.75
CrowdStrike Holdings Inc. 110.74
International Business Machines Corp. 20.74
Intuit Inc. 34.19
Microsoft Corp. 48.52
Oracle Corp. 37.77
Palo Alto Networks Inc. 41.87
Salesforce Inc. 30.99
ServiceNow Inc. 57.50
Synopsys Inc. 56.30
EV/FCFF, Sector
Software & Services 46.95
EV/FCFF, Industry
Information Technology 55.18

Based on: 10-K (reporting date: 2024-12-31).

1 Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Enterprise Value to FCFF Ratio, Historical

Palantir Technologies Inc., historical EV/FCFF calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Enterprise value (EV)1 287,139,473 48,189,177 15,242,186 21,491,473 41,738,848
Free cash flow to the firm (FCFF)2 1,141,231 697,069 183,714 323,415 (297,534)
Valuation Ratio
EV/FCFF3 251.61 69.13 82.97 66.45 —
Benchmarks
EV/FCFF, Competitors4
Accenture PLC 25.76 20.26 16.99 24.76 17.90
Adobe Inc. 21.98 37.75 20.82 33.61 40.43
Cadence Design Systems Inc. — 63.83 44.54 35.05 44.13
CrowdStrike Holdings Inc. 81.46 38.65 96.35 141.44 807.14
International Business Machines Corp. — 15.27 16.47 13.10 9.35
Intuit Inc. 36.79 31.28 32.85 48.64 37.90
Microsoft Corp. 49.30 41.75 32.31 38.37 33.99
Oracle Corp. 31.24 35.83 31.60 16.36 14.99
Palo Alto Networks Inc. 34.69 28.15 29.30 32.74 26.50
Salesforce Inc. 29.95 28.41 35.97 44.91 39.63
ServiceNow Inc. 60.21 56.55 40.86 60.13 83.74
Synopsys Inc. 56.23 55.87 30.82 38.59 42.88
EV/FCFF, Sector
Software & Services — 35.79 29.67 32.32 27.87
EV/FCFF, Industry
Information Technology — 34.40 26.66 27.46 23.88

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

1 See details »

2 See details »

3 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 287,139,473 ÷ 1,141,231 = 251.61

4 Click competitor name to see calculations.

Valuation ratio Description The company
EV/FCFF Enterprise value to free cash flow to the firm is whole company valuation indicator. Palantir Technologies Inc. EV/FCFF ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.