Palantir Technologies: Now Fairly Valued
Equity research follow-up coverage, rating unchanged
I mentioned that Palantir’s Q2 results were the best results in SaaS history. It is time to scratch that, as Palantir has outdone both themselves and my (very high) expectations of them. Intrinsic value grew ~27% QoQ, and Palantir is just about trading at fair value. That is a crazy statement to make considering they’re currently trading at pricing metrics of 117x price-to-sales and 416x price-to-earnings.
There is a massive part of the AI market that actually cares about value creation, and that’s the part we own.
Alex Karp, Chief Executive Officer
Palantir Technologies Inc, Q3 2025 Earnings Conference Call
After Q2, intrinsic value increased massively based on the statement of Palantir aiming to 10x their U.S. revenues over the next 5 years. The intrinsic value increase in Q3 stems primarily from margin expansion. Given the financial results, there is seemingly no end in sight for a massive increase in cash generation, and similarly, the growth re-acceleration seems to just be getting started.
Company profile
November 9, 2025 Follow-up coverage
Direction: Hold
Previous fair intrinsic value: $135.83, as of September 8, 2025
Symbol: PLTR, Exchange: NASDAQ
Sector: Technology, Industry: Software - Infrastructure
Theme: AI Software
Fair intrinsic value: $169.69 (-4.63%), as of November 9, 2025
Market capitalization: $457 468 million
Pricing data: P/S 117x, P/E 416x
Previous coverage:
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