Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
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Palantir Technologies Inc. pages available for free this week:
- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Reportable Segments
- Operating Profit Margin since 2020
- Total Asset Turnover since 2020
- Price to Earnings (P/E) since 2020
- Price to Book Value (P/BV) since 2020
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Current Valuation Ratios
Palantir Technologies Inc., current price multiples
| Palantir Technologies Inc. | Accenture PLC | Adobe Inc. | AppLovin Corp. | Cadence Design Systems Inc. | CrowdStrike Holdings Inc. | Datadog Inc. | International Business Machines Corp. | Intuit Inc. | Microsoft Corp. | Oracle Corp. | Palo Alto Networks Inc. | Salesforce Inc. | ServiceNow Inc. | Synopsys Inc. | Workday Inc. | Software & Services | Information Technology | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||
| Current share price (P) | |||||||||||||||||||||
| No. shares of common stock outstanding | |||||||||||||||||||||
| Growth rate (g) | |||||||||||||||||||||
| Earnings per share (EPS) | |||||||||||||||||||||
| Next year expected EPS | |||||||||||||||||||||
| Operating profit per share | |||||||||||||||||||||
| Sales per share | |||||||||||||||||||||
| Book value per share (BVPS) | |||||||||||||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||||||||||||
| Price to earnings (P/E) | |||||||||||||||||||||
| Price to next year expected earnings | |||||||||||||||||||||
| Price-earnings-growth (PEG) | |||||||||||||||||||||
| Price to operating profit (P/OP) | |||||||||||||||||||||
| Price to sales (P/S) | |||||||||||||||||||||
| Price to book value (P/BV) | |||||||||||||||||||||
Based on: 10-K (reporting date: 2025-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Palantir Technologies Inc., historical price multiples
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The valuation ratios exhibit significant fluctuations over the observed period. Initially, information is limited for 2021 and 2022, but a clear pattern of increasing valuation multiples emerges from 2022 to 2024, followed by a decline in 2025. This suggests a period of heightened investor optimism followed by a potential correction or reassessment.
- Price to Earnings (P/E)
- The Price to Earnings ratio is unavailable for 2021 and 2022. In 2023, it stood at 246.77, increasing substantially to 632.38 in 2024 before decreasing to 195.77 in 2025. This indicates a dramatic increase in the price investors were willing to pay for each dollar of earnings, peaking in 2024, and then a considerable reduction in 2025. The high values suggest substantial growth expectations were priced into the stock.
- Price to Operating Profit (P/OP)
- Similar to the P/E ratio, the Price to Operating Profit ratio is not available for 2021 and 2022. It was 431.61 in 2023, rising to 941.61 in 2024, and then declining to 224.99 in 2025. This mirrors the trend observed in the P/E ratio, indicating a similar dynamic in how the market valued the company’s operating profitability.
- Price to Sales (P/S)
- The Price to Sales ratio began at 15.58 in 2021, decreased to 9.34 in 2022, then increased significantly to 23.27 in 2023. The most substantial increase occurred between 2023 and 2024, reaching 102.00, before decreasing to 71.09 in 2025. This suggests that revenue growth became a more significant driver of valuation, particularly in 2024, but experienced a moderation in 2025.
- Price to Book Value (P/BV)
- The Price to Book Value ratio was 10.48 in 2021 and 6.94 in 2022. It increased to 14.90 in 2023, then rose sharply to 58.42 in 2024, before decreasing to 43.07 in 2025. This indicates a growing premium placed on the company’s net asset value, peaking in 2024, and then a subsequent reduction. The increasing trend suggests investors placed increasing value on intangible assets or future growth potential relative to the company’s book value.
Overall, the observed ratios suggest a period of escalating valuation from 2022 through 2024, followed by a notable decrease in 2025. This pattern warrants further investigation to understand the underlying factors driving these changes, such as shifts in market sentiment, company performance, or macroeconomic conditions.
Price to Earnings (P/E)
Palantir Technologies Inc., historical P/E calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to common stockholders (in thousands) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| P/E Ratio, Sector | ||||||
| Software & Services | ||||||
| P/E Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
EPS = Net income (loss) attributable to common stockholders ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Palantir Technologies Inc. Annual Report.
4 2025 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The price to earnings (P/E) ratio exhibits significant fluctuation over the observed period. Initially, the P/E ratio is not calculable for the years 2021 and 2022 due to negative earnings per share. A substantial increase is then noted, followed by a moderation in the most recent periods.
- P/E Ratio Trend
- The P/E ratio transitions from being undefined in 2021 and 2022 to a value of 246.77 in 2023. This represents a considerable shift coinciding with the move to positive earnings. The ratio then experiences a marked increase to 632.38 in 2024, before decreasing to 195.77 in 2025.
The share price demonstrates an initial decline from 2021 to 2022, followed by a substantial increase through 2024, and a more moderate increase in 2025. This price movement appears to be a key driver of the P/E ratio’s behavior.
- Earnings Per Share (EPS) and P/E Relationship
- The P/E ratio’s emergence and subsequent changes are directly linked to the progression of earnings per share. Negative EPS values in 2021 and 2022 preclude P/E calculation. As EPS turns positive in 2023 and continues to grow through 2025, the P/E ratio is established and fluctuates, reflecting the relative changes in share price compared to earnings.
The considerable P/E values observed, particularly in 2024, suggest that the share price grew at a faster rate than earnings during that period. The decrease in the P/E ratio in 2025 indicates a potential moderation in this trend, with earnings growth beginning to catch up to the share price.
- Volatility
- The P/E ratio demonstrates considerable volatility, moving from undefined to very high values and then decreasing. This suggests a degree of uncertainty or rapid change in investor expectations regarding future earnings potential.
Price to Operating Profit (P/OP)
Palantir Technologies Inc., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Income (loss) from operations (in thousands) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| P/OP Ratio, Sector | ||||||
| Software & Services | ||||||
| P/OP Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Operating profit per share = Income (loss) from operations ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Palantir Technologies Inc. Annual Report.
4 2025 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= ÷ =
5 Click competitor name to see calculations.
The Price to Operating Profit (P/OP) ratio exhibits a significant upward trend followed by a stabilization. Initially unavailable for 2021 and 2022, the ratio emerges in 2023 and increases substantially through 2024 before decreasing in 2025. This movement correlates with changes in both share price and operating profit per share.
- P/OP Ratio Trend
- The P/OP ratio is not calculable for the periods ending December 31, 2021 and December 31, 2022, likely due to negative operating profit per share. A value of 431.61 is recorded for December 31, 2023. This ratio then increases dramatically to 941.61 by December 31, 2024, before declining to 224.99 on December 31, 2025.
- Share Price Influence
- The share price demonstrates a decrease from US$11.83 in 2021 to US$8.47 in 2022. A substantial increase is then observed, reaching US$23.40 in 2023, US$124.62 in 2024, and US$133.02 in 2025. This upward trajectory in share price contributes significantly to the increasing P/OP ratio, particularly between 2023 and 2024.
- Operating Profit per Share Influence
- Operating profit per share is negative in both 2021 (US$-0.20) and 2022 (US$-0.08). It becomes positive in 2023 at US$0.05, and continues to increase to US$0.13 in 2024 and US$0.59 in 2025. The growth in operating profit per share, especially between 2024 and 2025, moderates the increase in the P/OP ratio, resulting in the observed decline from 2024 to 2025.
The substantial increase in the P/OP ratio from 2023 to 2024 suggests a significant shift in investor expectations relative to operating profitability. The subsequent decrease in 2025, while still at a high level, indicates a potential recalibration as operating profit per share increases at a faster rate than the share price.
Price to Sales (P/S)
Palantir Technologies Inc., historical P/S calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenue (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| P/S Ratio, Sector | ||||||
| Software & Services | ||||||
| P/S Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
Sales per share = Revenue ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Palantir Technologies Inc. Annual Report.
4 2025 Calculation
P/S ratio = Share price ÷ Sales per share
= ÷ =
5 Click competitor name to see calculations.
The price to sales ratio exhibited significant fluctuations over the observed period. Initially, the ratio decreased before increasing substantially, followed by a decline in the most recent year presented.
- Price to Sales (P/S) Ratio - Trend Analysis
- In 2021, the P/S ratio stood at 15.58. A decrease was observed in 2022, with the ratio falling to 9.34. The ratio then increased notably in 2023, reaching 23.27. A dramatic increase occurred in 2024, with the P/S ratio reaching 102.00. Subsequently, the ratio decreased in 2025 to 71.09.
The share price demonstrated a similar pattern of volatility. It decreased from 2021 to 2022, increased significantly in 2023, and experienced a substantial rise in 2024, followed by a more moderate increase in 2025.
- Share Price - Trend Analysis
- The share price began at 11.83 in 2021 and decreased to 8.47 in 2022. An increase to 23.40 was recorded in 2023. The share price then rose sharply to 124.62 in 2024, and continued to increase, albeit at a slower pace, reaching 133.02 in 2025.
Sales per share consistently increased throughout the period. This upward trend in sales per share appears to have been a contributing factor to the fluctuations in the P/S ratio, particularly when considered in conjunction with the share price movements.
- Sales per Share - Trend Analysis
- Sales per share increased from 0.76 in 2021 to 0.91 in 2022. This upward trend continued with values of 1.01 in 2023, 1.22 in 2024, and 1.87 in 2025. The rate of increase appears to have accelerated in the later years of the period.
The substantial increase in the P/S ratio in 2024, followed by a decrease in 2025, suggests a potential shift in investor sentiment or market expectations regarding the company’s future growth relative to its sales.
Price to Book Value (P/BV)
Palantir Technologies Inc., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Total Palantir’s stockholders’ equity (in thousands) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Accenture PLC | ||||||
| Adobe Inc. | ||||||
| AppLovin Corp. | ||||||
| Cadence Design Systems Inc. | ||||||
| CrowdStrike Holdings Inc. | ||||||
| Datadog Inc. | ||||||
| International Business Machines Corp. | ||||||
| Intuit Inc. | ||||||
| Microsoft Corp. | ||||||
| Oracle Corp. | ||||||
| Palo Alto Networks Inc. | ||||||
| Salesforce Inc. | ||||||
| ServiceNow Inc. | ||||||
| Synopsys Inc. | ||||||
| Workday Inc. | ||||||
| P/BV Ratio, Sector | ||||||
| Software & Services | ||||||
| P/BV Ratio, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 Data adjusted for splits and stock dividends.
2 2025 Calculation
BVPS = Total Palantir’s stockholders’ equity ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Palantir Technologies Inc. Annual Report.
4 2025 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
The price to book value ratio exhibits significant fluctuation over the observed period. Initially, the ratio decreased before increasing substantially in later years. This suggests a changing market perception of the relationship between the company’s market capitalization and its net asset value.
- Price to Book Value (P/BV) Trend
- The P/BV ratio began at 10.48 in 2021, then decreased to 6.94 in 2022. A subsequent increase was observed in 2023, reaching 14.90. The most dramatic change occurred between 2023 and 2024, with the ratio rising to 58.42. While still high, the ratio decreased slightly in 2025 to 43.07.
The share price demonstrated a similar pattern of initial decline followed by substantial growth. The share price fell from US$11.83 in 2021 to US$8.47 in 2022, then increased to US$23.40 in 2023. The most significant increase occurred between 2023 and 2024, reaching US$124.62, and continued to rise modestly to US$133.02 in 2025.
- Book Value per Share (BVPS) Trend
- Book value per share consistently increased throughout the period. Starting at US$1.13 in 2021, it rose to US$1.22 in 2022, US$1.57 in 2023, US$2.13 in 2024, and US$3.09 in 2025. This indicates a steady growth in the company’s net asset base relative to the number of outstanding shares.
The substantial increase in the P/BV ratio from 2023 to 2024, coupled with the increasing share price and BVPS, suggests a significant shift in investor expectations. The market appears to have assigned a considerably higher premium to the company’s book value in 2024, although this premium moderated slightly in 2025. The consistent growth in BVPS provides a fundamental basis for some of the observed increase in valuation, but the magnitude of the P/BV increase suggests factors beyond asset value are influencing market perception.