What does Palantir's financial picture actually look like right now?

Kevin Paffrath
Replied byKevin Paffrath

Founder & CEO at Meet Kevin (Reinvest)

Niche: Finance
Revenue: Not Publicly Disclosed/month
Location: Ventura, California, USA
Started: 2018

The financials are genuinely strong. They have about 9.4 billion in free cash after paying around 500 million in operating costs. Revenue is up about 92 percent. Costs are only up 53 percent, so they have massive pricing power. The growth rate on Wall Street expectations is sitting around 47 percent annually. That gives them roughly a 23 PEG ratio right now, with a PE of about 109. My own forecast is closer to 50 percent growth over the next four years. At that rate, you could justify a three PEG, which puts this closer to a 250 dollar stock. I do not think it is fully priced.

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This answer is part of a full interview with Kevin Paffrath, Founder & CEO at Meet Kevin (Reinvest).

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