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Palantir TechnologiesPLTR +1.99%81 Cash Ratio is 5.80 as of Mar. 2026, which is 29% above its 10-year median of 4.51. GuruFocus rates PLTR with a GF Score™ of 81/100 and a GF Value™ of $141.72 (Fairly Valued). The stock has 4 warning signs investors should review. Among 2,817 Software companies, Palantir Technologies ranks better than 93.61% on this metric.
Palantir Technologies has a Cash Ratio of 5.80. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Palantir Technologies's Cash Ratio or its related term are showing as below:
PLTR'
s Cash Ratio Range Over the Past 10 Years
Min: 1.48 Med: 4.51 Max: 6.11
Current: 5.8
During the past 8 years, Palantir Technologies's highest Cash Ratio was 6.11. The lowest was 1.48. And the median was 4.51.
PLTR's Cash Ratio is ranked better than 93.61% of 2817
companies
in the Software industry
Industry Median: 0.78
vs PLTR: 5.80
Palantir Technologies (NAS:PLTR) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Infrastructure subindustry, Palantir Technologies's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Palantir Technologies Cash Ratio vs Software Industry
For the Software industry and Technology sector, Palantir Technologies's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Palantir Technologies's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Palantir Technologies (PLTR) has a Cash Ratio of 5.80 as of Mar. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Palantir Technologies and its competitors. This is 29% above median its historical median of 4.51. Over the past decade, Palantir Technologies' Cash Ratio has ranged from 1.48 to 6.11. According to the industry distribution chart, Palantir Technologies ranks #180 out of 2817 companies in the Software industry, placing it in the top 6.4%.
Is Palantir Technologies' Cash Ratio too high?
Palantir Technologies' current Cash Ratio of 5.80 is 29% above median its 10-year median of 4.51. Over the past 10 years, this metric has ranged from a low of 1.48 to a high of 6.11. The Software industry median Cash Ratio is 0.78. Palantir Technologies' value of 5.80 is 643.6% above this industry median. Based on the distribution chart, Palantir Technologies ranks #180 out of 2817 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Palantir Technologies has a GF Score™ of 81/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Palantir Technologies' Cash Ratio compare to PANW and CRWD?
According to the Software industry distribution chart, Palantir Technologies ranks #180 out of 2817 companies for Cash Ratio. This places Palantir Technologies in the top 6% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.78. Palantir Technologies' value of 5.80 is 643.6% above this benchmark. Historically, Palantir Technologies' own Cash Ratio has ranged from 1.48 to 6.11 over the past decade. While the company's 10-year median is 4.51 vs. the industry median of 0.78, Palantir Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Software company?
The median Cash Ratio among Software companies is 0.78, based on 2,817 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palantir Technologies's current Cash Ratio of 5.80 is 643.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Palantir Technologies and its competitors. For the Software industry, the median Cash Ratio is 0.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palantir Technologies's current Cash Ratio is 5.80, which is 29% above median its own 10-year median of 4.51. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palantir Technologies stock overvalued right now?
Based on GuruFocus' analysis, Palantir Technologies (PLTR) is currently considered Fairly Valued. The stock's GF Value™ is $141.72, compared to a current price of $135.02 — trading 4.7% below its estimated fair value. The current Cash Ratio is 5.80, which is 29% above median its 10-year median of 4.51 and 643.6% above the Software industry median of 0.78. Palantir Technologies' overall GF Score™ is 81/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Palantir Technologies (PLTR), the current Cash Ratio is 5.80 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Palantir Technologies (PLTR) Overvalued in 2026?
Based on GuruFocus' analysis, Palantir Technologies stock appears to be undervalued.
The current stock price of $135.02 is trading 4.7% below its estimated GF Value™ of $141.72.
GuruFocus considers Palantir Technologies to be Fairly Valued.
Key valuation signals for PLTR:
Cash Ratio: 5.80 (29% above median its 10-year median of 4.51)
GF Value™: $141.72 vs. price of $135.02 (4.7% below fair value)
Industry Position: 643.6% above the Software median (#180 of 2817)
No single metric tells the full story. See the PLTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palantir is an artificial intelligence, analytics, and automated decision-making company that leverages data to drive efficiency across its clients' organizations. The firm serves commercial and government clients via its Foundry and Gotham platforms, respectively. Palantir works only with entities in Western-allied nations and reserves the right not to work with anyone that is antithetical to Western values. The company was founded in 2003 and went public in 2020.
81GF Score
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