$Palantir Technologies Inc.(PLTR)$is a companythat is not very well understood by many people. According to wikipedia, it is a company that is into big data analytics. On their own website, they indicate that they make products for human-driven analysis of real-world data. This is all very abstract and thus many people are unable to value the company properly because it does not fall nicely into any category.
Broadly speaking, what they actually do is to use their custom software tools to make sense of huge volumes of data coming in from many sources to spot patterns and trends which human in the loop analysts can then use these findings to improve the company or discover new directions or issues to solve..
What is more important however is their business growth and potential. Their revenue growth Year on year is 47% with a 71% gross revenue margin. Although the company is still losing money, their debt to equity ratio is 0.121, which means they do not owe a lot of money. As they are not profitable, using price to sales ratio as a valuation method is more appropriate. With a PS ratio of 36, it is a bit on the high side even for high growth companies.
I would watch and wait for prices to drop to around 20 per share which would be a more acceptable entry value. As always, do your own research before investing. Stay safe.
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