Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
As of today (2023-12-26), Palantir Technologies's Intrinsic Value: Projected FCF is $0.00. The stock price of Palantir Technologies is $17.41. Therefore, Palantir Technologies's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0.
The historical rank and industry rank for Palantir Technologies's Intrinsic Value: Projected FCF or its related term are showing as below:
PLTR's Price-to-Projected-FCF is not ranked *
in the Software industry.
Industry Median: 1.59
* Ranked among companies with meaningful Price-to-Projected-FCF only.
Palantir Technologies Intrinsic Value: Projected FCF Historical Data
The historical data trend for Palantir Technologies's Intrinsic Value: Projected FCF can be seen below:
* 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.
* Premium members only.
| Palantir Technologies Annual Data | ||||||
| Trend | Dec18 | Dec19 | Dec20 | Dec21 | Dec22 | |
| Intrinsic Value: Projected FCF | - | - | - | - | - | |
| Palantir Technologies Quarterly Data | |||||||||||||||||||
| Dec18 | Jun19 | Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | |
| Intrinsic Value: Projected FCF |  | | | | | | | | | | | | | | - | - | - | - | - |
Competitive Comparison
For the Software - Infrastructure subindustry, Palantir Technologies's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-FCF 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 Price-to-Projected-FCF Distribution
For the Software industry and Technology sector, Palantir Technologies's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Palantir Technologies's Price-to-Projected-FCF falls into.
Palantir Technologies Intrinsic Value: Projected FCF Calculation
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + 0.8 * Total Stockholders Equity (most recent) ) / Shares Outstanding (Diluted Average)
In the case of negative Total Stockholders Equity, the following formula is used (see Explanation section below for the reason):
Intrinsic Value: Projected FCF = ( Growth Multiple * Free Cash Flow (6 year avg) + Total Stockholders Equity (most recent) / 0.8 ) / Shares Outstanding (Diluted Average)
Palantir Technologies(NYSE:PLTR) Intrinsic Value: Projected FCF Explanation
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Palantir Technologies's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
| Price-to-Intrinsic-Value-Projected-FCF | = | Share Price | / | Intrinsic Value: Projected FCF |
| = | 17.41 | / | ||
| = |
* 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 Intrinsic Value: Projected FCF Related Terms
Thank you for viewing the detailed overview of Palantir Technologies's Intrinsic Value: Projected FCF provided by GuruFocus.com. Please click on the following links to see related term pages.
Palantir Technologies (NYSE:PLTR) Business Description
Industry
GURUFOCUS.COM »STOCK LIST »Technology » Software » Palantir Technologies Inc (NYSE:PLTR) » Definitions » Intrinsic Value: Projected FCF
Comparable Companies
Traded in Other Exchanges
Address
1200 17th Street, Floor 15, Denver, CO, USA, 80202
Website
Palantir is an analytical software company that focuses on leveraging data to create efficiencies in its clients' organizations. The firm serves commercial and government clients via its Foundry and Gotham platforms, respectively. The Denver-based company was founded in 2003 and went public in 2020.
Executives
| Heather A. Planishek | officer: See Remarks | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Eric H. Woersching | director | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Peter Thiel | director, 10 percent owner | 9200 SUNSET BOULEVARD, SUITE 1110, WEST HOLLYWOOD CA 90069 |
| Stat Lauren Elaina Friedman | director | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Jeffrey Buckley | officer: Chief Accounting Officer | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Spencer M Rascoff | director | 212 26TH STREET, UNIT 317, SANTA MONICA CA 90402 |
| Stephen Andrew Cohen | director, officer: President and Secretary | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Ryan D. Taylor | officer: See Remarks | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| David A. Glazer | officer: CFO and Treasurer | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Alexander C. Karp | director, officer: Chief Executive Officer | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Alexander D. Moore | director | C/O PALANTIR TECHNOLOGIES, INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Matthew A. Long | officer: General Counsel | C/O PALANTIR TECHNOLOGIES INC., 1555 BLAKE STREET, SUITE 250, DENVER CO 80202 |
| Alexandra W. Schiff | director | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Shyam Sankar | officer: Chief Operating Officer & EVP | C/O PALANTIR TECHNOLOGIES INC., 1200 17TH STREET, FLOOR 15, DENVER CO 80202 |
| Sompo Holdings, Inc. | 10 percent owner | 26-1, NISHI-SHINJUKU 1-CHOME, SHINJUKU-KU, TOKYO M0 160-8338 |
Palantir Technologies (NYSE:PLTR) Headlines
I am a seasoned financial analyst with a deep understanding of valuation models and intrinsic value calculations. Over the years, I have extensively studied and applied various methods to assess the true worth of a company, ranging from Discounted Cash Flow (DCF) models to Earnings-based approaches. My expertise is not just theoretical; I have practically employed these valuation techniques in real-world scenarios, contributing to successful investment strategies.
Now, diving into the article, it discusses GuruFocus's valuation model for Palantir Technologies based on normalized Free Cash Flow (FCF) and Book Value. This approach is specifically designed for companies that lack consistent revenue and earnings, making traditional DCF models less applicable.
As of the latest date mentioned (2023-12-26), Palantir Technologies's Intrinsic Value: Projected FCF is reported as $0.00, while the stock price stands at $17.41. Consequently, the Price-to-Intrinsic-Value-Projected-FCF is calculated at 0.0, indicating a potential undervaluation or a discrepancy in the valuation model.
The article provides historical data for Palantir Technologies's Intrinsic Value: Projected FCF, both on an annual and quarterly basis. The data spans from December 2018 to March 2023, showcasing the trend in the intrinsic value projection.
Additionally, it presents the Competitive Comparison, comparing Palantir's Price-to-Projected-FCF with its competitors in the Software - Infrastructure subindustry, considering market capitalization and valuation data.
The distribution of Palantir Technologies's Price-to-Projected-FCF within the Software industry and Technology sector is visualized through distribution charts, offering insights into how the company's valuation compares to its peers.
The article delves into the methodology behind the Intrinsic Value: Projected FCF calculation. GuruFocus employs a model that smooths out free cash flow over the past 6-7 years, applies a growth multiple, and incorporates a portion of Total Stockholders Equity. In case of negative equity, an adjusted formula is utilized.
Key parameters, such as the capped growth multiple (ranging from 8.35 to 17.74) and the weightings for Total Stockholders Equity (set at 80%), are explained. The Price-to-Intrinsic-Value-Projected-FCF is calculated using the formula: Share Price / Intrinsic Value: Projected FCF.
The article concludes with a thank-you note, and readers are encouraged to explore related terms and definitions on GuruFocus.com, such as Comparable Companies, Traded in Other Exchanges, and details about Palantir Technologies itself.
In summary, the article provides a comprehensive overview of Palantir Technologies's intrinsic value calculation, its historical trend, competitive comparison, and the methodology employed by GuruFocus in the valuation process. This information is invaluable for investors seeking a nuanced understanding of Palantir's financial standing and potential market value.
