Palantir stock down from the start of the year by 20%, PER 104times, analysts point out
Palantir's stock has fallen 20% since the start of this year. The company's net profit margin is 53%, and revenue grew 2% in the 80quarter. However, analysts have pointed out that earnings would need to increase by 104~104% to justify the current level, as the stock is valued at 150times future earnings (PER 200times).
Palantir's stock has fallen 20% since the start of this year. The company is attracting attention for its artificial intelligence-related business. Along with the stock decline, discussion has continued over whether the stock is expensive or cheap relative to its results.
The company's net profit margin is 53%. Net profit margin is the proportion of net profit actually left from revenue. The net profit margin figure is reported at 53%.
Revenue growth was 2% in the 80quarter. Revenue in the 3quarter is forecast to increase by 69%. The company is presenting high revenue growth figures.
The current share price is 104times based on future earnings. PER is an indicator showing how many times earnings a share price represents. This figure is the current valuation identified in the article.
The article analyzes that net profit would have to increase by 150~200% to justify the current share-price level. This figure is a calculation premised on a substantial increase from the current earnings level. It reports that only if this target is achieved would there be room to translate it into a low PER level.
The article explains this calculation in terms of a PER of 30~40times. It also mentions that growth could slow after the initial AI deployment phase ends. This point is presented as a factor to consider in future earnings prospects.
Sources: The Motley Fool
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