Palantir Technologies Inc. (NASDAQ:PLTR)

Price to Earnings (P/E) Ratio

The P/E ratio data is available starting from March 31, 2023. It shows a general decline from 279.03 in March 2023 to 147.19 in December 2023, indicating a reduction in the multiple investors are willing to pay per dollar of earnings during that year. However, this trend reverses sharply afterward, with the ratio increasing to 632.38 by June 2024, followed by a subsequent decline but remaining elevated, ending at 450.16 by March 2025. This volatility suggests significant fluctuations in investor sentiment or earnings performance across recent quarters.

Price to Operating Profit (P/OP) Ratio

Similar to the P/E ratio, the P/OP ratio data starts from March 31, 2023. Initially, it decreases considerably from 1130.92 in March 2023 to 203.93 in December 2023, suggesting an improvement in operating profitability relative to the stock price or a decrease in valuation multiples. Nevertheless, the ratio experiences a marked increase again, peaking at 941.61 in June 2024 before falling to 633.43 by March 2025. This pattern mirrors that of the P/E ratio, indicating fluctuating operating profit relative to market valuation over this period.

Price to Sales (P/S) Ratio

The P/S ratio is available for the entire timeline beginning March 31, 2021. It starts very high at 15.58 in the first period and declines steadily to a low of 7.98 in December 2021, reflecting a drop in the valuation relative to sales during this initial phase. Subsequently, there is volatility with moderate increases and decreases through 2022 and early 2023. Starting in March 2023, the ratio rises sharply, reaching a peak of 102 by December 2024, before declining slightly to 82.47 by March 2025. This sharp increase signals an exceptionally high valuation relative to sales in these most recent periods, potentially driven by investor expectations exceeding sales growth.

Price to Book Value (P/BV) Ratio

The P/BV ratio shows notable fluctuation throughout the timeframe. Initially, it was at 19.63 in March 2021, increased to 23.5 in June 2021, then decreased substantially to 6.46 by March 2022. From this point, the ratio remained relatively stable in the single digits through most of 2022 but began to rise again in 2023, reaching 14.9 by December 2023. After a slight dip in early 2024, a sharp ascent occurs in late 2024 and early 2025, peaking at 58.42 in December 2024, before settling at 47.36 in March 2025. These changes indicate shifts in market valuation relative to the company's net asset base, with pronounced increases in the later periods suggesting growing market optimism or reduced book value growth relative to the stock price.

Share Price

The share price exhibited notable volatility over the observed period. Initially, it rose from $18.89 as of March 31, 2021, to a peak of $24.89 by June 30, 2021, followed by a general decline that reached a low point around March 31, 2022, at $7.46. Subsequently, the price fluctuated modestly, staying in the range of approximately $7.02 to $9.55 through March 31, 2023. After this period, the stock price showed a strong upward trend, climbing substantially to $26.59 by June 30, 2024. This positive momentum continued sharply, reaching a peak of $124.62 on December 31, 2024, before experiencing a moderate pullback to $108.86 as of March 31, 2025.

Earnings Per Share (EPS)

EPS data emerged starting at December 31, 2021, where the company recorded negative earnings of -$0.26 per share. This negative trend in EPS persisted through December 31, 2022, although the magnitude of losses slightly decreased, with the loss narrowing to -$0.18. From March 31, 2023, onward, the EPS steadily improved, transitioning into positive territory by September 30, 2023, with earnings of $0.07 per share. This positive trajectory continued, with EPS increasing progressively each quarter to reach $0.24 by March 31, 2025.

Price to Earnings (P/E) Ratio

P/E ratio data is reported starting from September 30, 2023. It showed elevated levels initially at 279.03, which decreased slightly to 246.77 in the following quarter and further declined to 159.62 by March 31, 2024. The ratio then hovered between 147.19 and 244.4 through June 30, 2024, before rising sharply to an extreme level of 632.38 by December 31, 2024. By March 31, 2025, the P/E ratio had moderated somewhat yet remained high at 450.16. This pattern reflects the rapid share price appreciation relative to earnings growth during the most recent quarters.

Share Price Trends

The share price demonstrated significant volatility over the observed period. Initially, it rose from $18.89 at the end of Q1 2021 to a peak near $24.89 in Q2 2021, followed by a decline to $7.46 by Q1 2022. From this low point, the price showed a steady recovery through 2023, reaching $23.40 by Q4 2023. The upward momentum continued strongly into 2024, peaking sharply at $124.62 in Q4 before moderating slightly to $108.86 by Q1 2025.

Operating Profit Per Share (OPPS)

Operating profit per share was initially negative and showed a consistent improving trend. Starting around -$0.20 in Q4 2021, it progressively increased, turning positive in Q4 2023 and further rising to $0.17 by Q1 2025. This indicates improving operational efficiency and profitability over the time frame.

Price to Operating Profit Ratio (P/OP)

The price to operating profit multiples were very high and fluctuated considerably when operating profit per share was near zero or negative, reflecting the sensitivity of this ratio to profitability changes. Values peaked beyond 1000 in early 2023, then generally decreased to a range of 200-400 during 2023 and 2024, with a slight upward spike towards Q4 2024 and Q1 2025, suggesting the market price growth outpaced profit gains at those points.

Overall Observations

The data suggest a company in transition towards profitability with improving operational results over time. Share price appreciation is substantial, particularly in late 2024, indicating increasing investor confidence or other external market factors. The high and volatile P/OP ratio reflects early low profitability, followed by market adjustments as profits became positive and grew. Continued monitoring of profit growth against share price trends would be prudent to assess valuation sustainability.

Share Price Trend

The share price showed considerable volatility throughout the period. Starting at $18.89 in March 2021, it rose to a peak of $24.89 by June 2021, then declined steadily to a low of $7.02 by September 2022. After this trough, the share price began a notable recovery, reaching $23.40 by December 2023. The most significant growth occurred in the last year, with shares rising sharply from $21.40 in March 2024 to a peak of $124.62 by December 2024, before settling slightly lower at $108.86 in March 2025.

Sales per Share Trend

Sales per share data became available starting March 2022, with an initial value of $0.76. From then on, there was a consistent upward trend, reaching $1.32 by March 2025. The growth was steady and incremental each quarter, reflecting gradual improvement in revenue generation on a per-share basis.

Price-to-Sales (P/S) Ratio Analysis

The P/S ratio exhibited substantial fluctuations over the period analyzed. Initial values around 15.58 in March 2022 decreased to 7.98 by December 2022, indicating the share price moved closer to its sales per share value at that time. However, a significant upward momentum occurred afterward, with the P/S ratio escalating to 44.01 by December 2024 and peaking at 102 in March 2025. This sharp increase suggests that the market price is growing disproportionately faster than sales per share, potentially indicating heightened market expectations or speculative investor behavior.

Summary of Patterns and Insights

The data reveals a marked turnaround for the company after a period of share price decline through 2021 and 2022. Sales per share steadily grew, demonstrating consistent operational improvement. However, the P/S ratio's rapid escalation in the final twelve months implies that the share price appreciation has outpaced sales growth significantly. This divergence could be indicative of increased investor optimism or speculative valuation, and may warrant cautious consideration regarding sustainability. Overall, the trends suggest a transition from valuation correction toward significant market optimism well beyond operational sales growth.

The data shows notable fluctuations in the share price over the analyzed periods. Initially, the share price increased from $18.89 to $24.89 between March and June 2021, followed by a gradual decrease to $7.46 by March 2022. After this low point, the share price exhibited a general upward trend, reaching $23.40 by December 2023. This upward momentum accelerated significantly in 2024, with the share price peaking at $124.62 at the end of December 2024 before a slight decline to $108.86 by March 2025.

Book value per share (BVPS) demonstrated a steady and gradual increase throughout the entire period. Starting from $0.96 in March 2021, BVPS consistently rose to $2.30 by March 2025. This suggests a steady growth in the company's net asset base on a per-share basis, indicating strengthening fundamentals over time.

The price-to-book value ratio (P/BV) reflects considerable volatility tied closely to the movements in the share price. The ratio started at 19.63 in March 2021, peaking at 23.50 in June 2021. It then declined sharply to a low of 6.12 in September 2022, corresponding with the trough in share price values. This ratio increased substantially after September 2022, reaching an extremely high value of 58.42 by December 2024, driven primarily by the rapid increase in share price, while BVPS growth remained steady but modest. A decrease in the P/BV ratio to 47.36 occurred by March 2025 alongside the slight share price drop.

Overall, while the book value per share improved steadily, the share price experienced significant volatility with a marked peak in late 2024. This, coupled with the dramatic swings in the P/BV ratio, indicates changing market perceptions and varying investor sentiment that may not be fully aligned with underlying asset growth. The exceptionally high P/BV values in late 2024 suggest that market price increases were driven more by speculative or sentiment factors rather than corresponding increases in book value.