Is Palantir Technologies, Inc. overvalued or undervalued?

As of 31 October 2025, the valuation grade for Palantir Technologies, Inc. has moved from expensive to very expensive, indicating a significant increase in its perceived overvaluation. The company is considered overvalued based on its current metrics, with a Price to Book Value of 55.57, an EV to EBITDA ratio of 679.96, and an EV to Sales ratio of 95.03.
In comparison to its peers, Palantir's valuation is notably higher than CrowdStrike Holdings, Inc., which has an EV to EBITDA of 90217.66, and Cadence Design Systems, Inc., which has an EV to EBITDA of 65.01. This suggests that Palantir is trading at a premium relative to its industry. Additionally, Palantir has significantly outperformed the S&P 500 across multiple periods, with a year-to-date return of 152.02% compared to the S&P 500's 16.30%, reinforcing the notion of its current overvaluation.