Think Palantir Stock Is Expensive? This 1 Chart Might Change Your Mind.

Core Insights - Palantir Technologies has experienced a remarkable stock performance, gaining 134% year to date and over 2,000% since the launch of its Artificial Intelligence Platform in April 2023 [1][9] - The company's market capitalization has surged from $16 billion to $422 billion, despite a recent drop of 25% [2] - Palantir's stock is trading at a high valuation, with a price-to-earnings ratio of 244 and a price-to-sales ratio of 96 [2] Financial Performance - In the third quarter, Palantir reported a 63% year-over-year revenue increase and a 200% rise in earnings per share [5] - The U.S. commercial revenue specifically saw a significant jump of 121% [5] - The company has raised its revenue growth outlook to at least 61%, with a history of exceeding its own forecasts [5] Cash Flow and Valuation - Palantir has generated nearly $3.9 billion in revenue over the past year, converting $1.8 billion into free cash flow, resulting in a free cash flow margin of 47% [6] - The combination of increasing demand and growing margins suggests that Palantir may not be as overvalued as it appears [7]