PLTR (Palantir Technologies) Intrinsic Value: Projected FCF (2024)

FAQs

PLTR (Palantir Technologies) Intrinsic Value: Projected FCF? ›

As of today (2023-06-28), Palantir Technologies's Intrinsic Value: Projected FCF is $0.00. The stock price of Palantir Technologies is $15.28. Therefore, Palantir Technologies's Price-to-Intrinsic-Value-Projected-FCF of today is 0.0. in the Software industry.

So the intrinsic value is the net present value (NPV) of the sum of all future free cash flows (FCF) the company will generate during its existence. This intrinsic value reflects how much the business underlying the stock is actually worth if you would sell off the whole business and all of its assets.

As of today (2023-06-19), Palantir Technologies's share price is $16.30. Palantir Technologies's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Mar. 2023 was $0.16. Hence, Palantir Technologies's Price-to-Free-Cash-Flow Ratio for today is 101.24.

Palantir Stock Price Prediction 2030

At the same time, the management will have turned the company profitable. If we talk about, Palantir Stock Price Prediction 2030, then PLTR stock price rises to about $80. If then market scenario are barish, palatir stock price $65 in down side.

Stock Price Forecast

The 12 analysts offering 12-month price forecasts for Palantir Technologies Inc have a median target of 8.25, with a high estimate of 18.00 and a low estimate of 5.00. The median estimate represents a -49.45% decrease from the last price of 16.32.

If you read Berkshire Hathway's manual, Buffett said, “The intrinsic value can be defined simply. It is the discounted value of the cash that can be taken out of a business during its remaining life. As our definition suggests, intrinsic value is an estimate rather than a price figure.

A good price to free cash flow ratio is one that indicates its stock is undervalued. A company's P/FCF should be compared to the ratios of similar companies to determine whether it is under- or over-valued in the industry it operates in.

DCF Value. This DCF valuation model was created by Alpha Spread and was last updated on Jun 24, 2023. Estimated DCF Value of one PLTR stock is 3.58 USD. Compared to the current market price of 14.03 USD, the stock is Overvalued by 74%.

PLTR shares currently have a short interest ratio of 2.0.

Apple's free cash flow yield hit its 5-year low in September 2020 of 3.6%. Apple's free cash flow yield decreased in 2018 (5.5%, -16.5%) and 2020 (3.6%, -37.1%) and increased in 2019 (5.8%, +5.4%), 2021 (4.1%, +11.9%), and 2022 (4.8%, +19.6%).

How much will Palantir be worth in 5 years? ›

By 2025 it is expected that Palantir Technologies will be trading at around $18.57, which is its high from 2022.

Palantir stock price stood at $14.03

According to the latest long-term forecast, Palantir price will hit $15 by the middle of 2023 and then $20 by the end of 2024. Palantir will rise to $30 within the year of 2025, $35 in 2026, $45 in 2027, $50 in 2028, $55 in 2030, $60 in 2032 and $65 in 2033.

Our fair value estimate for Palantir is $9 per share, implying a 2023 enterprise value/sales multiple of 8 times. At a 2-star rating, Palantir stock is overvalued compared with its fair value estimate.

Palantir estimates that its total addressable market (TAM) is roughly $119 billion and some analysts project revenue to reach $9 billion by 2026. It seems to be on its way there as the company stands firm behind its projected annual revenue growth of 30% or more through 2025.

Splunk. Like Palantir, Splunk software analyzes and visualizes data in real-time. But Splunk specializes in machine-generated data, while Palantir ingests all data forms.

Intrinsic value is an estimate of the actual value of a company, separate from how the market values it. Value investors look for companies with higher intrinsic value than market value. They see this as a good investment opportunity.

Precious metals or any other metal having high intrinsic value used as money are called metallic money.

Is free cash flow the same as profit? Free cash flow (FCF) is a measure of a business's profitability, but is not equivalent to overall net income.

Is FCF a good investment? ›

When free cash flow is positive, it indicates the company is generating more cash than is used to run the business and reinvest to grow the business. It's fully capable of supporting itself, and there is plenty of potential for further growth.

Well, while there's no one-size-fits-all ratio that your business should be aiming for – mainly because there are significant variations between industries – a higher cash flow margin is usually better. A cash flow margin ratio of 60% is very good, indicating that Company A has a high level of profitability.

According to Wall Street analysts, the average 1-year price target for PLTR is 9 USD with a low forecast of 5.05 USD and a high forecast of 15.75 USD.

The LTV is therefore approximately $5.6m per customer per year * (6.6 + 3.5) years = ~$57m per customer. The CAC is a bit harder to estimate, and I admit I could be way off here. Palantir discloses that it brought in $5.6m of revenue from new customers in H1 2020.

The range of the Intrinsic Value is 79.77 - 337.55 USD.

The company's average customer spends $8.1 million per year on Palantir contracts and carries an average contract length between three to four years. Image source: Getty Images. The sales process consists of three phases that Palantir calls acquire, expand, and scale.

If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.

Palantir Technologies's float percentage of total shares outstanding is 87.11%.

A higher free cash flow yield is ideal because it means a company has enough cash flow to satisfy all of its obligations. If the free cash flow yield is low, it means investors aren't receiving a very good return on the money they're investing in the company.

As of 2023-06-21, the Intrinsic Value of Apple Inc (AAPL) is 170.93 USD. This value is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 185.01 USD, the upside of Apple Inc is -7.6%.

Does Palantir have potential? ›

Palantir Technologies is forecasted to grow earnings and revenue by 55.6% and 16% per annum respectively. EPS is expected to grow by 56.7%. Return on equity is forecast to be 10.7% in 3 years.

Around a year back, Palantir estimated sales to grow by 30% annually through 2025. But in 2022, its sales were up 24% and are on track to increase by “just” 16% this year. Wall Street, though expects sales growth to accelerate by 19% in 2024, which is still much lower than Palantir's forecast.

Palantir Stock Forecast & Predictions: 1Y Price Target $10.50 | Buy or Sell NYSE: PLTR 2023 | WallStreetZen.

Summary. Palantir's shares had a difficult year in 2022, just like the rest of the tech industry. Palantir extending its services to the private sector is what will create a ton of new chances for growth in the future. Palantir, if executed properly, has the potential to play a significant role in the metaverse.

Palantir Technologies Inc.

may be overvalued. Its Value Score of D indicates it would be a bad pick for value investors. The financial health and growth prospects of PLTR, demonstrate its potential to underperform the market.

As you can see above, the fair value is about $41 billion under the given assumptions. This means the stock is more than 20% undervalued even after a massive year-to-date rally.

We note that hedge funds don't have a meaningful investment in Palantir Technologies. The company's largest shareholder is The Vanguard Group, Inc., with ownership of 7.8%.

Palantir is enjoying broad-based growth

That included a 50% jump in U.S. commercial customers, to 155. Palantir's Q1 revenue, in turn, rose by 18% year over year to $525 million. The gains were wide-ranging. Commercial sales expanded by 15% to $236 million, while government revenue increased by 20% to $289 million.

Based on analyst ratings, Palantir Technologies's 12-month average price target is $11.13. Currently there's no upside potential for PLTR, based on the analysts' average price target.

Historical dividend payout and yield for Palantir Technologies (PLTR) since 1971. The current TTM dividend payout for Palantir Technologies (PLTR) as of June 23, 2023 is $0.00. The current dividend yield for Palantir Technologies as of June 23, 2023 is 0.00%.

Does Palantir use AI? ›

“Palantir has demonstrated its clear leadership in AI on a global scale from both a market share and revenue perspective...we're excited to see how Palantir continues to separate itself from the competition by solving the toughest business challenges out there with their platforms.”

May 8 (Reuters) - Palantir Technologies (PLTR. N) said on Monday it expects to turn a profit every quarter in 2023, betting on interest "unlike anything we have seen" in its new artificial intelligence platform, sending its shares up about 20% in extended trading.

Funds operated by ARK bought over 4.37 million shares of Palantir at an estimated valuation of over $43 million. The purchase was done through the flagship ARK Innovation ETF (NYSE:ARKK) and the ARK Next Generation Internet ETF (NYSE:ARKW).

1 in Worldwide Artificial Intelligence Software Study in Market Share and Revenue. DENVER —(BUSINESS WIRE)—Palantir Technologies Inc. (NYSE: PLTR, "Palantir"), a leading builder of operating systems for the modern enterprise, today announced it was ranked the No.

Palantir has come under criticism due to its partnership developing software for U.S. Immigration and Customs Enforcement. Palantir has responded that its software is not used to facilitate deportations.

Palantir and Snowflake are both considered Data Warehousing Tools. They offer unique methods for interacting with large, non-relational data sets. While Palantir uses private operating system models (a specialized solution), Snowflake offers a more conventional, cloud-based warehousing approach (a general solution).

Intrinsic Value = Σ CF / (1 + r) ^ t

Where: CF = Future Cash Flows. r = Discount Rate (WACC, Cost of Equity) t = Time Period.

Free cash flow (FCF) is the money a company has left over after paying its operating expenses (OpEx) and capital expenditures (CapEx). The more free cash flow a company has, the more it can allocate to dividends, paying down debt, and growth opportunities.

Free cash flow = sales revenue - (operating costs + taxes) - required investments in operating capital. Free cash flow = net operating profit after taxes - net investment in operating capital.

What is the intrinsic value of FL stock? ›

As of 2023-06-18, the Intrinsic Value of Foot Locker Inc (FL) is 41.10 USD.

If you remember, Warren said to calculate intrinsic value involves discounting the cash. So, what does that exactly mean? Basically, it means valuing an investment based on how much money it could generate in the future. Then, discounting future earnings to arrive at a meaningful number today.

A second way to work out intrinsic value is by applying a financial metric, like the price-to-earnings ratio. In this case, where r = expected earnings growth rate: Intrinsic Value = Earnings Per Share (EPS) x (1 + r) x P/E Ratio.

Graham Calculator

Benjamin Graham, also known as the father of value investing, was known for picking cheap stocks. The graham calculator is a good tool to find a rough estimate of the intrinsic value. It is simple and very easy to use.

What is a good price to cash flow ratio? A good price to cash flow ratio is anything below 10. The lower the number, the better the value of the stock. This is because a lower ratio indicates that the company is undervalued with respect to its cash flows.

A higher free cash flow yield is ideal because it means a company has enough cash flow to satisfy all of its obligations. If the free cash flow yield is low, it means investors aren't receiving a very good return on the money they're investing in the company.

First, he studies what he refers to as "owner's earnings." This is essentially the cash flow available to shareholders, technically known as free cash flow-to-equity (FCFE). Buffett defines this metric as net income plus depreciation, minus any capital expenditures (CAPX) and working capital (W/C) costs.

Apple free cash flow for the twelve months ending March 31, 2023 was , a year-over-year. Apple annual free cash flow for 2022 was $111.443B, a 19.89% increase from 2021.

As of today (2023-06-25), Coca-Cola Co's Intrinsic Value: Projected FCF is $24.13. The stock price of Coca-Cola Co is $61.20. Therefore, Coca-Cola Co's Price-to-Intrinsic-Value-Projected-FCF of today is 2.5.

What is the intrinsic value of Google? ›

As of today (2023-06-25), Alphabet(Google)'s Intrinsic Value: Projected FCF is $65.74. The stock price of Alphabet(Google) is $123.02. Therefore, Alphabet(Google)'s Price-to-Intrinsic-Value-Projected-FCF of today is 1.9.