Latest Ratios: P/E Ratio 304.4x · EV/EBITDA 304.9x · ROE 25.8%. (2018–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $440.4B | $456.0B | $185.4B | $39.5B | $13.2B | $35.0B | $23.1B | — | — |
| Enterprise Value | $439.2B | $454.8B | $183.5B | $38.9B | $10.9B | $33.0B | $21.5B | — | — |
| P/E Ratio → | 304.43 | 282.14 | 398.05 | 188.06 | — | — | — | — | — |
| P/S Ratio | 98.40 | 101.88 | 64.69 | 17.73 | 6.95 | 22.72 | 21.11 | — | — |
| P/B Ratio | 65.70 | 60.89 | 36.38 | 11.08 | 5.01 | 15.29 | 15.15 | — | — |
| P/FCF | 209.64 | 217.06 | 162.42 | 56.60 | 72.12 | 109.05 | — | — | — |
| P/OCF | 206.31 | 213.62 | 160.64 | 55.40 | 59.22 | 104.92 | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 101.61 | 64.04 | 17.46 | 5.72 | 21.40 | 19.68 | — | — |
| EV / EBITDA | 304.94 | 315.78 | 536.55 | 253.42 | — | — | — | — | — |
| EV / EBIT | 310.58 | 274.39 | 375.11 | 161.51 | — | — | — | — | — |
| EV / FCF | — | 216.50 | 160.79 | 55.74 | 59.33 | 102.73 | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 82.4% | 82.4% | 80.2% | 80.6% | 78.6% | 78.0% | 67.7% | 67.4% | 72.2% |
| Operating Margin | 31.6% | 31.6% | 10.8% | 5.4% | -8.5% | -26.7% | -107.4% | -77.6% | -104.7% |
| Net Profit Margin | 36.3% | 36.3% | 16.1% | 9.4% | -19.6% | -33.7% | -106.7% | -78.1% | -97.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| ROE | 25.8% | 25.8% | 10.7% | 6.8% | -15.1% | -27.3% | -76.6% | — | — |
| ROA | 21.3% | 21.3% | 8.5% | 5.3% | -11.1% | -17.5% | -54.4% | -38.3% | -40.5% |
| ROIC | 22.3% | 22.3% | 7.5% | 5.5% | -43.7% | -269.8% | — | — | — |
| ROCE | 21.6% | 21.6% | 6.8% | 3.6% | -5.9% | -17.6% | -79.5% | -65.3% | -69.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.05 | 0.06 | 0.09 | 0.11 | 0.30 | — | — |
| Debt / EBITDA | 0.16 | 0.16 | 0.70 | 1.50 | — | — | — | — | — |
| Net Debt / Equity | — | -0.16 | -0.36 | -0.17 | -0.89 | -0.89 | -1.02 | — | — |
| Net Debt / EBITDA | -0.83 | -0.83 | -5.44 | -3.92 | — | — | — | — | — |
| Debt / FCF | — | -0.57 | -1.63 | -0.86 | -12.79 | -6.32 | — | — | — |
| Interest Coverage | — | — | — | 69.33 | -87.97 | -133.20 | -82.39 | -184.32 | -164.97 |
Net cash position: cash ($1.4B) exceeds total debt ($229M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 7.11 | 7.11 | 5.96 | 5.55 | 5.17 | 4.34 | 3.74 | 1.67 | 2.29 |
| Quick Ratio | 7.11 | 7.11 | 5.96 | 5.55 | 5.17 | 4.34 | 3.74 | 1.67 | 2.29 |
| Cash Ratio | 6.11 | 6.11 | 5.25 | 4.93 | 4.48 | 3.83 | 3.33 | 1.48 | 2.10 |
| Asset Turnover | — | 0.50 | 0.45 | 0.49 | 0.55 | 0.47 | 0.41 | 0.47 | 0.42 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 84.99 | 73.25 | 59.84 | 49.48 | 45.20 | 52.42 | 24.73 | 11.76 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 |
|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 0.3% | 0.4% | 0.3% | 0.5% | — | — | — | — | — |
| FCF Yield | 0.5% | 0.5% | 0.6% | 1.8% | 1.4% | 0.9% | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $2.6B | $2.5B | $2.3B | $2.1B | $1.9B | $979M | $716M | $716M |
Includes 30+ ratios · 8 years · Updated daily
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Quick answers to the most common questions about buying PLTR stock.
Palantir Technologies Inc.'s current P/E ratio is 304.4x. The historical average is 188.1x. This places it at the 100th percentile of its historical range.
Palantir Technologies Inc.'s current EV/EBITDA is 304.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA.
Palantir Technologies Inc.'s return on equity (ROE) is 25.8%. This is above the typical threshold of 15-20% considered good for most companies. The historical average is -12.6%.
Based on historical data, Palantir Technologies Inc. is trading at a P/E of 304.4x. This is at the 100th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Palantir Technologies Inc. has 82.4% gross margin and 31.6% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Palantir Technologies Inc.'s Debt/EBITDA ratio is 0.2x, indicating low leverage. A ratio below 2x is generally considered financially healthy.
Key Metrics
Top Statement Risk
Valuation premium vs. fundamentals
Metrics are mathematically derived from official filings.
Margin Inflection Driven by Operating Leverage
Operating margin expanded from 1.3% in 2024Q4 to 47.1% in 2026Q2, per SEC filings, as revenue growth outpaced expense growth, signaling strong operating leverage.
The 46-percentage-point expansion in operating margin over six quarters reflects a scalable software model where incremental revenue carries minimal variable cost. Gross margin improved from 78.9% to 84.7% in the same period, indicating pricing power and efficient delivery. However, net margin of 54.9% exceeds operating margin by 780 basis points, suggesting non-operating income—likely interest on the $1.4B cash pile—boosts reported profitability. Investors should monitor whether this gap narrows as interest rates normalize.
ROIC Inflection Signals Compounding Potential
ROIC rose from 0.2% in 2024Q4 to 9.4% in 2026Q2, as reported in financial statements, indicating a decisive shift from value destruction to value creation.
The improvement in ROIC is driven by margin expansion rather than asset turnover, which remains low at 0.18x due to the asset-light model. With negligible debt and a growing equity base, the company is now generating returns above its cost of capital, a prerequisite for sustainable compounding. The trajectory suggests that if margins hold, ROIC could continue to climb, but the sustainability depends on maintaining revenue growth without proportional cost increases.
Working Capital Efficiency Masked by Contract Timing
DSO remained stable around 67-68 days in 2026, per balance sheet data, while DPO dropped to 11 days, indicating limited supplier leverage despite strong cash conversion.
The cash conversion cycle is not calculable due to missing DIO data, but the low DPO suggests the company pays suppliers quickly, possibly reflecting a lack of bargaining power or a preference for maintaining strong relationships. DSO stability at ~67 days is reasonable for enterprise software with government contracts, but the volatility in working capital components, as noted in cash flow analysis, points to milestone-based billing. The high current ratio of 7.23 provides ample liquidity, but efficiency gains in working capital management appear limited.
Minimal Leverage Provides Strategic Flexibility
Debt-to-equity stands at 0.02 with D/EBITDA at 0.23, per balance sheet data, indicating negligible leverage and substantial capacity for future capital deployment.
The company's fortress balance sheet, with $2.0B cash and minimal debt, means interest coverage is effectively infinite, though not explicitly reported. This low leverage reduces refinancing risk and provides a buffer against economic downturns. However, the lack of debt also means the company is not using leverage to amplify returns, which is appropriate given the high valuation multiple. Investors should watch whether management initiates share repurchases or M&A, as the cash pile grows.
Ample Liquidity with Minimal Inventory Risk
Current ratio improved to 7.23 in 2026Q2, per balance sheet data, with quick ratio identical, reflecting a cash-rich, asset-light model with no inventory dependence.
The current and quick ratios are equal because the company holds no inventory, typical for software. With $2.0B in cash and short-term investments, the company can fund operations for years without external financing. This liquidity position would hold up well under severe stress, as the high-margin recurring revenue provides a stable cash flow base. The main risk is not liquidity but the opportunity cost of holding excess cash that could be returned to shareholders.
P/E Misleads for Hypergrowth Software
The trailing P/E of 285.6, per valuation data, is misleading for a company with 93% revenue growth; EV/EBITDA of 286.05 better captures the market's premium.
Traditional P/E ratios are distorted by the company's transition to GAAP profitability and the impact of stock-based compensation. EV/EBITDA, while still elevated, provides a clearer picture of operating performance relative to enterprise value. However, even EV/EBITDA fails to account for the company's high growth rate; a PEG ratio would be more informative, but it is not available. Investors should use forward multiples and consider the sustainability of growth, as any deceleration could trigger multiple compression.