Is Palantir Technologies, Inc. overvalued or undervalued?

As of 4 August 2025, the valuation grade for Palantir Technologies, Inc. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. Despite this change, the company remains overvalued based on its current financial metrics. Key ratios include a Price to Book Value of 55.57, an EV to EBITDA of 679.96, and an EV to Sales ratio of 95.03, which are significantly higher than industry norms, suggesting that the stock price does not align with its underlying financial performance.
When compared to peers, Palantir's valuation ratios stand out unfavorably; for instance, CrowdStrike Holdings, Inc. has a negative P/E ratio of -664.80, while Roper Technologies, Inc. shows a more reasonable EV to EBITDA of 22.34. The substantial difference in these metrics indicates that Palantir is priced at a premium relative to its peers. Notably, Palantir has demonstrated impressive returns, with a 1Y return of 386.45% compared to the S&P 500's 17.14%, reinforcing the notion that while the stock has performed well recently, it remains overvalued in the context of its financial ratios.