Palantir Stock Could Still Be 20% Undervalued as Analysts Raise Their Forecasts

Core Insights - Palantir, Inc. (PLTR) stock is potentially undervalued by nearly 20% based on analysts' increased revenue forecasts and a projected free cash flow (FCF) margin of 48% [1][3] - The stock is currently trading at $181.07, up from a recent low of $153.11 [1] - Analysts have raised their revenue forecast for 2026 to $5.61 billion, an increase from previous estimates of $5.33 billion [4] Financial Performance - Palantir's adjusted FCF margin is projected to exceed 48% of revenue, translating to $2 billion in adjusted FCF from a revenue estimate of $4.15 billion [3][4] - The company reported an impressive Q2 adjusted FCF margin of 56.7%, with $569 million in adjusted FCF from $1 billion in revenue [4] - The trailing 12-month unadjusted FCF margin stands at 49.7% [4] Valuation Metrics - Current trading reflects a FCF multiple of over 215 times, based on a market cap of $431 billion and a forecasted adjusted FCF of $2 billion [6] - This results in a FCF yield of less than 0.5%, indicating a dividend yield of 0.46% if all adjusted FCF were distributed to shareholders [6] - With a potential adjusted FCF of $2.69 billion in 2026, this represents a 34.5% increase from the high-end estimate of $2 billion for 2025 [5]