Palantir Overvalued: Hold and Wait for a Better Price

2 months ago

Parkev Tatevosian, CFA

"So on November 3rd, I reiterated the hold rating or reinvigorated the rating of do not buy Palenteer stock. And my reasoning was that the price was too expensive. And whether I measured the company using the forward price to earnings ratio or if I evaluated the company utilizing my proprietary discounted cash flow model, the stock looked overvalued. In fact, following the company's latest quarterly financial performance, I upgraded the free cash flow expectations for this company and I downgraded the risk profile of this company. When I adjust the beta lower, it decreases the weighted average cost of capital."

The speaker updates his hold rating on Palantir stock, emphasizing that despite excellent performance metrics, the valuation remains far too high. Using both forward price to earnings metrics and a discounted cash flow model, he finds the stock overvalued, trading at multiples that significantly exceed its intrinsic value. He advises investors to wait for a better price before considering a purchase.

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