On September 01, 2026, Palantir Technologies Inc PLTR shares fell by 3.5%, closing at $179.92. This decline occurred within a 52-week price range of $106.37 to $207.52, showcasing significant volatility over the past year.
- GF Valueā¢ verdict: The current price is $179.92, which is 3.4% above the GF Valueā¢ estimate of $173.98, indicating that the stock is slightly overvalued.
- GF Scoreā¢: PLTR has a robust GF Scoreā¢ of 80/100, suggesting strong fundamentals and growth potential.
- Most notable signal: Insider activity has been predominantly selling, with insiders selling $895.7 million worth of shares in the past 12 months, indicating potential concerns about the stockās future performance.
Is PLTR Overvalued or Undervalued?
According to the GF Valueā¢, which is GuruFocus' proprietary estimate of intrinsic value based on historical trading multiples, past business growth, and future performance projections, Palantir Technologies is currently trading slightly over its fair value. The GF Valueā¢ is pegged at $173.98, suggesting that at its current price of $179.92, there is a 3.4% margin of overvaluation. This slight overvaluation carries risks for potential investors, as it indicates that the stock may face downward pressure if market conditions do not support its current price level.
The GF Valuation label identifies PLTR as fairly valued, but the recent decline in share price could be interpreted as a market correction or a response to broader economic factors. Therefore, while the stock is not drastically overvalued, investors should proceed with caution given that the current price exceeds the intrinsic value estimate, and consider the implications of insider selling on the stockās future performance.
How Does PLTR's Valuation Compare to Its History?
| Metric | Current | Historical |
|---|---|---|
| P/E (TTM) | 153.8x | 270.9x |
| Forward P/E | 111.1x | - |
Palantir's current P/E ratio of 153.8x is significantly below its 5-year median P/E of 270.9x, suggesting that the stock is trading at a lower valuation compared to its historical levels. This P/E analysis aligns with the GF Valueā¢ verdict that indicates the stock is fairly valued, although it highlights the volatility and potential mispricing in the market.
What Does PLTR's GF Scoreā¢ Tell Us?
The GF Scoreā¢ is a composite score that evaluates a company's financial strength, profitability, growth, valuation, and momentum, providing insights into its overall potential. Palantir Technologies boasts a GF Scoreā¢ of 80/100, indicating strong fundamentals. The strongest sub-rank is Growth at 9/10, reflecting its solid growth prospects, while the weakest area is Profitability, rated at 4/10, suggesting that there may be challenges in generating profits relative to its peers.
| Metric | Rating |
|---|---|
| GF Scoreā¢ | 80/100 |
| Financial Strength | 8/10 |
| Profitability | 4/10 |
| Growth | 9/10 |
| Valuation | 7/10 |
| Momentum | 5/10 |
These scores suggest that Palantir is financially sound with a strong growth potential, although its profitability may need improvement. The relatively high financial strength score complements the growth rank, indicating a solid foundation despite the current valuation challenges.
What Are Gurus and Insiders Doing with PLTR?
Currently, 13 investment gurus hold positions in Palantir Technologies, with 8 increasing their holdings and 6 trimming their positions in recent quarters. This mixed activity among gurus suggests a cautious optimism about the stock's future, as more gurus are choosing to invest further.
On the other hand, insider activity shows a concerning trend, with insiders selling $895.7 million worth of shares over the past year and no new acquisitions. This pattern of significant insider selling may cast doubt on the company's short-term prospects and could reflect insider sentiment regarding the stock's valuation or future performance.
What This Means for Investors
In conclusion, based on the GF Valueā¢ assessment, Palantir Technologies Inc PLTR is currently overvalued, trading at $179.92 compared to a fair value estimate of $173.98. The stock's recent performance, combined with insider selling, suggests that investors should carefully evaluate their positions and consider the implications of these factors on future price movements. For more detailed insights, visit the Palantir Technologies Inc (PLTR) stock page.
Frequently Asked Questions
What is PLTR's GF Scoreā¢?
PLTR has a GF Scoreā¢ of 80/100, indicating strong fundamentals and growth potential.
Is PLTR overvalued or undervalued?
According to the GF Valueā¢, PLTR is currently overvalued, trading 3.4% above its fair value estimate of $173.98.
What is PLTR's P/E ratio?
Palantir's P/E ratio is 153.8x, which is significantly below its 5-year median of 270.9x, indicating a lower valuation compared to its historical levels.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
