Palantir Technologies

Methodology

Palantir's government and commercial software platforms create growing earnings visibility as the business matures from investment mode to profitability. Long sales cycles and lumpy deal timing add uncertainty. The calculation becomes more applicable as Palantir demonstrates consistent profitability, though stock-based compensation adjustments complicate earnings analysis.

Methodology

Palantir's PEG ratio varies widely based on growth expectations and profitability trajectory as the company transitions from growth investments to margin expansion. During periods of accelerating commercial adoption, premium ratios can be justified. Compare to enterprise software peers while accounting for stock-based compensation impacts and government versus commercial revenue mix.

Methodology

Palantir pays no dividend, making PEGY equal to PEG as management prioritizes platform development and market expansion. Capital allocation focuses entirely on R&D and go-to-market investments. For this growth software company, commercial customer additions and margin improvement matter far more than current shareholder income.