Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Palantir Technologies Inc., current price multiples
| Palantir Technologies Inc. | Accenture PLC | Adobe Inc. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Fair Isaac Corp. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | Software & Services | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||||||||||
| Current share price (P) | $132.12 | |||||||||||||||||||
| No. shares of common stock outstanding | 2,359,912,397 | |||||||||||||||||||
| Growth rate (g) | -17.05% | |||||||||||||||||||
| Earnings per share (EPS) | $0.20 | |||||||||||||||||||
| Next year expected EPS | $0.16 | |||||||||||||||||||
| Operating profit per share | $0.13 | |||||||||||||||||||
| Sales per share | $1.21 | |||||||||||||||||||
| Book value per share (BVPS) | $2.12 | |||||||||||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||||||||||
| Price to earnings (P/E) | 674.60 | 25.93 | 28.88 | 80.44 | — | 87.47 | 44.39 | 72.84 | 41.41 | 51.91 | 50.95 | 41.53 | 146.68 | 35.86 | 120.68 | 47.91 | 56.15 | |||
| Price to next year expected earnings | 813.27 | 22.01 | 21.83 | 63.48 | — | 41.73 | 44.08 | 64.94 | 32.53 | 18.46 | 59.57 | 39.61 | 130.93 | 31.15 | 120.65 | 39.47 | 44.81 | |||
| Price to operating profit (P/OP) | 1,004.47 | 19.63 | 23.82 | 62.86 | — | 61.14 | 28.50 | 59.45 | 33.35 | 36.54 | 192.05 | 35.72 | 153.24 | 59.87 | 152.96 | 38.97 | 43.53 | |||
| Price to sales (P/S) | 108.81 | 2.90 | 7.47 | 18.29 | 31.28 | 26.12 | 4.26 | 13.25 | 14.89 | 11.25 | 16.36 | 6.79 | 19.03 | 13.25 | 7.52 | 11.85 | 11.59 | |||
| Price to book value (P/BV) | 62.32 | 6.66 | 11.38 | 18.17 | 37.70 | — | 9.79 | 11.71 | 13.60 | 31.59 | 25.41 | 4.21 | 21.75 | 9.03 | 7.03 | 13.76 | 16.49 | |||
Based on: 10-K (reporting date: 2024-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Palantir Technologies Inc., historical price multiples
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).
The financial ratios of the company over the five-year period exhibit marked fluctuations, indicating significant changes in market valuation relative to earnings, operating profit, sales, and book value.
- Price to Earnings (P/E) Ratio
- The P/E ratio data is only available for the last two years, showing a substantial increase from 246.77 in 2023 to 632.38 in 2024. This sharp rise suggests that the market's valuation of the company's earnings has dramatically increased, potentially reflecting expectations of significant future growth or reflecting diminished earnings relative to price.
- Price to Operating Profit (P/OP) Ratio
- Similar to the P/E ratio, the P/OP ratio is recorded only for 2023 and 2024, with an increase from 431.61 to 941.61. This escalation indicates a growing market premium on the company's operating profitability, which could signal investor optimism or a decline in operating profit margins.
- Price to Sales (P/S) Ratio
- The P/S ratio shows a decreasing trend from 39.86 in 2020 to 9.34 in 2022, indicating an improving valuation relative to sales during this period. However, there is a reversal in the last two years, with increases to 23.27 in 2023 and then a sharp spike to 102 in 2024. This pattern suggests initial market correction followed by renewed valuation expansion, possibly due to changes in sales growth expectations or shifts in market sentiment.
- Price to Book Value (P/BV) Ratio
- Starting at 28.6 in 2020, the P/BV ratio decreased consistently to 6.94 in 2022 showing improving valuation relative to book value, potentially reflecting book value growth or price adjustment. However, similar to other ratios, it increased again to 14.9 in 2023 and further surged to 58.42 in 2024, indicating a substantial increase in market valuation over book value in the most recent years. This could indicate increased investor confidence or overvaluation based on book value fundamentals.
Overall, the analyzed ratios reveal a pattern of initial valuation contraction from 2020 to 2022, followed by significant expansion from 2023 to 2024. The sharp rises in all valuation multiples in the last two years suggest heightened market expectations or speculative valuation levels despite limited earnings and operating profit data. Such disparities warrant closer examination of profitability trends and market conditions to fully understand the underlying drivers of these valuation changes.
Price to Earnings (P/E)
Palantir Technologies Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,345,356,506 | 2,212,732,992 | 2,101,387,197 | 2,030,118,339 | 1,822,267,548 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to common stockholders (in thousands) | 462,190) | 209,825) | (373,705) | (520,379) | (1,166,391) | |
| Earnings per share (EPS)2 | 0.20 | 0.09 | -0.18 | -0.26 | -0.64 | |
| Share price1, 3 | 124.62 | 23.40 | 8.47 | 11.83 | 23.90 | |
| Valuation Ratio | ||||||
| P/E ratio4 | 632.38 | 246.77 | — | — | — | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Accenture PLC | 31.07 | 27.81 | 22.93 | 36.58 | 28.32 | |
| Adobe Inc. | 31.98 | 49.64 | 33.15 | 48.90 | 41.69 | |
| Cadence Design Systems Inc. | 67.09 | 78.64 | 59.70 | 53.88 | 62.89 | |
| CrowdStrike Holdings Inc. | 892.67 | — | — | — | — | |
| Fair Isaac Corp. | 99.26 | 54.13 | 29.67 | 27.12 | 56.83 | |
| International Business Machines Corp. | 39.68 | 22.50 | 71.56 | 19.40 | 19.30 | |
| Intuit Inc. | 58.94 | 64.61 | 57.31 | 75.17 | 49.52 | |
| Microsoft Corp. | 35.67 | 33.96 | 28.34 | 35.14 | 35.04 | |
| Oracle Corp. | 37.63 | 38.96 | 26.85 | 15.84 | 16.69 | |
| Palo Alto Networks Inc. | 42.42 | 170.35 | — | — | — | |
| Salesforce Inc. | 71.24 | 879.57 | 135.68 | 48.20 | 1,204.70 | |
| ServiceNow Inc. | 146.40 | 90.80 | 284.28 | 487.70 | 978.47 | |
| Synopsys Inc. | 33.69 | 70.08 | 51.76 | 73.37 | 55.92 | |
| Workday Inc. | 50.53 | — | 1,957.29 | — | — | |
| P/E Ratio, Sector | ||||||
| Software & Services | 41.74 | 39.95 | 34.37 | 37.37 | 38.32 | |
| P/E Ratio, Industry | ||||||
| Information Technology | 45.10 | 35.92 | 26.81 | 29.49 | 31.10 | |
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
EPS = Net income (loss) attributable to common stockholders ÷ No. shares of common stock outstanding
= 462,190,000 ÷ 2,345,356,506 = 0.20
3 Closing price as at the filing date of Palantir Technologies Inc. Annual Report.
4 2024 Calculation
P/E ratio = Share price ÷ EPS
= 124.62 ÷ 0.20 = 632.38
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a notable volatility over the observed period. Starting at $23.9 at the end of 2020, it declined significantly to $11.83 in 2021 and further to $8.47 in 2022. However, a strong recovery was seen afterward, with the price rising sharply to $23.4 in 2023 and then experiencing an extraordinary increase to $124.62 in 2024. This indicates a substantial surge in market valuation in the most recent year.
- Earnings Per Share (EPS)
- The EPS demonstrated a continuous improvement trend over the period. Initially, EPS was negative, at -$0.64 in 2020, improving to -$0.26 in 2021 and -$0.18 in 2022, indicating decreasing losses. By 2023, the earnings per share turned positive to $0.09 and further increased to $0.2 in 2024, reflecting the company’s transition towards profitability and improving earnings performance.
- Price-to-Earnings (P/E) Ratio
- P/E ratio data is only available for 2023 and 2024, showing extremely high values of 246.77 and 632.38 respectively. These unusually elevated P/E ratios suggest that the stock price was growing at a much faster pace than earnings, possibly indicating high market expectations for future growth or an overvaluation relative to current earnings.
Price to Operating Profit (P/OP)
Palantir Technologies Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,345,356,506 | 2,212,732,992 | 2,101,387,197 | 2,030,118,339 | 1,822,267,548 | |
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in thousands) | 310,403) | 119,966) | (161,201) | (411,046) | (1,173,679) | |
| Operating profit per share2 | 0.13 | 0.05 | -0.08 | -0.20 | -0.64 | |
| Share price1, 3 | 124.62 | 23.40 | 8.47 | 11.83 | 23.90 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | 941.61 | 431.61 | — | — | — | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Accenture PLC | 23.52 | 21.69 | 16.83 | 28.35 | 22.21 | |
| Adobe Inc. | 26.38 | 40.52 | 25.85 | 40.64 | 51.75 | |
| Cadence Design Systems Inc. | 52.42 | 65.43 | 47.21 | 48.13 | 57.54 | |
| CrowdStrike Holdings Inc. | — | — | — | — | — | |
| Fair Isaac Corp. | 69.38 | 36.15 | 20.43 | 21.03 | 45.39 | |
| International Business Machines Corp. | 25.48 | 17.99 | 14.35 | 16.23 | 15.90 | |
| Intuit Inc. | 48.11 | 49.04 | 46.05 | 62.00 | 41.56 | |
| Microsoft Corp. | 28.73 | 27.76 | 24.72 | 30.79 | 29.30 | |
| Oracle Corp. | 25.65 | 25.30 | 16.51 | 14.31 | 12.17 | |
| Palo Alto Networks Inc. | 159.88 | 193.40 | — | — | — | |
| Salesforce Inc. | 58.80 | 177.62 | 357.52 | 431.39 | 511.08 | |
| ServiceNow Inc. | 152.95 | 206.26 | 260.26 | 436.46 | 583.07 | |
| Synopsys Inc. | 56.25 | 67.90 | 43.85 | 75.64 | 59.90 | |
| Workday Inc. | 381.31 | — | — | — | — | |
| P/OP Ratio, Sector | ||||||
| Software & Services | 33.96 | 31.98 | 27.23 | 33.52 | 31.79 | |
| P/OP Ratio, Industry | ||||||
| Information Technology | 34.96 | 29.91 | 22.75 | 26.04 | 26.91 | |
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= 310,403,000 ÷ 2,345,356,506 = 0.13
3 Closing price as at the filing date of Palantir Technologies Inc. Annual Report.
4 2024 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 124.62 ÷ 0.13 = 941.61
5 Click competitor name to see calculations.
The financial data reveals several noteworthy trends regarding the company's performance and market valuation over the observed five-year period.
- Share Price
- The share price experienced a significant decline from US$23.9 at the end of 2020 to US$8.47 at the end of 2022. Subsequently, there was a notable recovery and sharp increase in the share price, reaching US$23.4 by the end of 2023 and surging further to US$124.62 by the end of 2024. This indicates heightened market optimism or improved investor sentiment in the latter years of the period.
- Operating Profit Per Share
- The operating profit per share showed a consistent improvement throughout the period. Starting with a negative value of -US$0.64 in 2020, losses decreased successively to -US$0.2 in 2021 and -US$0.08 in 2022. By 2023, the company achieved a positive operating profit per share of US$0.05, improving further to US$0.13 in 2024. This trend suggests a gradual movement towards operational profitability and improved cost management or revenue growth.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio data is only available for the last two years, showing extremely high values of 431.61 in 2023 and 941.61 in 2024. Such elevated ratios imply that the market valuation relative to operating profits is very high, which can indicate investor expectations of future growth or potentially overvaluation relative to current operating earnings.
Overall, the company demonstrated a clear progression from operating losses toward profitability, alongside a volatile but ultimately very strong recovery in share price. The extremely high P/OP ratios in the most recent years may warrant further analysis to determine the sustainability of the current valuation levels in relation to operational performance.
Price to Sales (P/S)
Palantir Technologies Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,345,356,506 | 2,212,732,992 | 2,101,387,197 | 2,030,118,339 | 1,822,267,548 | |
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | 2,865,507) | 2,225,012) | 1,905,871) | 1,541,889) | 1,092,673) | |
| Sales per share2 | 1.22 | 1.01 | 0.91 | 0.76 | 0.60 | |
| Share price1, 3 | 124.62 | 23.40 | 8.47 | 11.83 | 23.90 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 102.00 | 23.27 | 9.34 | 15.58 | 39.86 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Accenture PLC | 3.48 | 2.98 | 2.56 | 4.28 | 3.26 | |
| Adobe Inc. | 8.27 | 13.88 | 8.95 | 14.94 | 17.04 | |
| Cadence Design Systems Inc. | 15.26 | 20.02 | 14.23 | 12.55 | 13.85 | |
| CrowdStrike Holdings Inc. | 26.10 | 12.81 | 30.15 | 48.70 | 22.79 | |
| Fair Isaac Corp. | 29.64 | 15.36 | 8.05 | 8.08 | 10.38 | |
| International Business Machines Corp. | 3.81 | 2.73 | 1.94 | 1.94 | 1.47 | |
| Intuit Inc. | 10.72 | 10.72 | 9.30 | 16.09 | 11.78 | |
| Microsoft Corp. | 12.82 | 11.60 | 10.40 | 12.81 | 10.85 | |
| Oracle Corp. | 7.44 | 6.63 | 4.25 | 5.38 | 4.33 | |
| Palo Alto Networks Inc. | 13.62 | 10.87 | 9.62 | 10.72 | 6.66 | |
| Salesforce Inc. | 8.45 | 5.84 | 7.40 | 9.24 | 8.88 | |
| ServiceNow Inc. | 18.99 | 17.52 | 12.75 | 19.02 | 25.66 | |
| Synopsys Inc. | 12.45 | 14.75 | 10.03 | 13.22 | 10.08 | |
| Workday Inc. | 9.61 | 7.71 | 11.19 | 13.95 | 10.65 | |
| P/S Ratio, Sector | ||||||
| Software & Services | 10.32 | 8.77 | 7.46 | 9.46 | 7.68 | |
| P/S Ratio, Industry | ||||||
| Information Technology | 9.31 | 7.33 | 6.01 | 6.96 | 6.11 | |
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= 2,865,507,000 ÷ 2,345,356,506 = 1.22
3 Closing price as at the filing date of Palantir Technologies Inc. Annual Report.
4 2024 Calculation
P/S ratio = Share price ÷ Sales per share
= 124.62 ÷ 1.22 = 102.00
5 Click competitor name to see calculations.
The financial data reveals significant volatility and overall positive trends across the assessed periods.
- Share Price
- The share price demonstrated considerable fluctuations. It declined from $23.9 in 2020 to a low of $8.47 in 2022, indicating a period of weakening market valuation. However, a strong recovery followed, with the share price rising sharply to $23.4 in 2023 and then surging to $124.62 in 2024. This pattern suggests increased investor confidence or significant positive developments impacting market perception during the last two years.
- Sales Per Share
- Sales per share exhibited steady growth over the five-year period, increasing from $0.6 in 2020 to $1.22 in 2024. The growth rate, while consistent, is moderate and reflects gradual improvement in revenue generation per share. Incremental increases each year indicate a continuous yet measured expansion in sales performance.
- Price-to-Sales (P/S) Ratio
- The P/S ratio followed a trend similar to the share price but with more pronounced extremes. It started at a high of 39.86 in 2020, dropped sharply alongside share price to 9.34 in 2022, and then rebounded significantly to 102 in 2024. The elevated P/S ratio in the final year indicates a market valuation that is considerably higher relative to the company’s sales per share, reflecting either high growth expectations or possible overvaluation.
In summary, while sales per share showed stable growth, the share price and P/S ratio displayed considerable volatility with a steep recovery and substantial market re-rating in recent years. The marked increase in share price and P/S ratio by 2024 suggests heightened market optimism, which warrants further analysis regarding the sustainability of this valuation given the more moderate growth in sales.
Price to Book Value (P/BV)
Palantir Technologies Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 2,345,356,506 | 2,212,732,992 | 2,101,387,197 | 2,030,118,339 | 1,822,267,548 | |
| Selected Financial Data (US$) | ||||||
| Total Palantir’s stockholders’ equity (in thousands) | 5,003,275) | 3,475,561) | 2,565,326) | 2,291,030) | 1,522,550) | |
| Book value per share (BVPS)2 | 2.13 | 1.57 | 1.22 | 1.13 | 0.84 | |
| Share price1, 3 | 124.62 | 23.40 | 8.47 | 11.83 | 23.90 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 58.42 | 14.90 | 6.94 | 10.48 | 28.60 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Accenture PLC | 7.98 | 7.44 | 7.13 | 11.06 | 8.51 | |
| Adobe Inc. | 12.61 | 16.31 | 11.22 | 15.94 | 16.53 | |
| Cadence Design Systems Inc. | 15.15 | 24.05 | 18.46 | 13.68 | 14.90 | |
| CrowdStrike Holdings Inc. | 34.61 | 19.61 | 42.67 | 48.91 | 14.78 | |
| Fair Isaac Corp. | — | — | — | — | 40.58 | |
| International Business Machines Corp. | 8.75 | 7.49 | 5.34 | 5.90 | 5.24 | |
| Intuit Inc. | 9.47 | 8.92 | 7.20 | 15.71 | 17.71 | |
| Microsoft Corp. | 11.71 | 11.92 | 12.38 | 15.16 | 13.11 | |
| Oracle Corp. | 45.25 | 308.71 | — | 41.57 | 14.01 | |
| Palo Alto Networks Inc. | 21.15 | 42.84 | 252.00 | 71.88 | 20.61 | |
| Salesforce Inc. | 4.94 | 3.13 | 3.37 | 4.73 | 4.48 | |
| ServiceNow Inc. | 21.71 | 20.60 | 18.36 | 30.36 | 40.91 | |
| Synopsys Inc. | 8.48 | 14.02 | 9.24 | 10.50 | 7.57 | |
| Workday Inc. | 8.63 | 8.58 | 12.68 | 18.38 | 15.54 | |
| P/BV Ratio, Sector | ||||||
| Software & Services | 11.99 | 11.44 | 10.73 | 13.58 | 11.64 | |
| P/BV Ratio, Industry | ||||||
| Information Technology | 13.25 | 11.50 | 10.49 | 12.51 | 11.10 | |
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 Data adjusted for splits and stock dividends.
2 2024 Calculation
BVPS = Total Palantir’s stockholders’ equity ÷ No. shares of common stock outstanding
= 5,003,275,000 ÷ 2,345,356,506 = 2.13
3 Closing price as at the filing date of Palantir Technologies Inc. Annual Report.
4 2024 Calculation
P/BV ratio = Share price ÷ BVPS
= 124.62 ÷ 2.13 = 58.42
5 Click competitor name to see calculations.
The share price of the company exhibits notable fluctuations over the analyzed period. Initially, the share price decreased significantly from $23.90 at the end of 2020 to a low of $8.47 by the end of 2022. Subsequently, there is a marked recovery and sharp increase, with the share price rising to $23.40 by the end of 2023 and experiencing a substantial surge to $124.62 by the end of 2024.
Concurrently, the book value per share (BVPS) demonstrates a consistent positive trend. It increased from $0.84 in 2020 to $2.13 by the end of 2024, indicating a gradual strengthening of the company's net asset value per share over the five-year period.
The price-to-book value (P/BV) ratio also shows significant variation reflective of the trends in both share price and book value per share. The ratio decreased sharply from an elevated 28.6 in 2020 to a low of 6.94 in 2022, corresponding with the declining share price and modest increase in BVPS. However, following the share price recovery, the P/BV ratio increased substantially to 14.9 in 2023 and then soared dramatically to 58.42 by the end of 2024, indicating that the market price increasingly outpaced the book value per share in the most recent year.
Overall, the data reflects a period of initial share price decline followed by a rapid recovery and strong market optimism reflected in the share price and valuation multiples by the end of 2024. The steady growth in book value per share suggests improvement in underlying asset value, but the extreme rise in the P/BV ratio toward the end may imply elevated market expectations relative to the book value base.