Palantir Stock Isn't Cheap, But It Might Still Be a Bargain

By Adria Cimino – Mar 13, 2026 at 4:10AM ESTKey PointsPalantir has delivered explosive revenue growth in recent years.This is thanks to the company’s role in the AI boom.Palantir Technologies (PLTR +1.25%) has wowed investors in recent quarters with its earnings performance and its stock performance. The company, offering software powered by artificial intelligence (AI), has been at the forefront of the AI boom. But one thing has weighed on the stock during its exciting journey higher, and that's valuation. At its most expensive, Palantir reached more than 250x forward earnings estimates. Since that time, valuation has come down quite a bit, but the stock is far from cheap. Still, it may be a bargain... Let's find out more. Image source: Getty Images. Making better use of data So, first, a bit about Palantir's business. The company offers software that helps its customers aggregate their data and leverage it to make key decisions and discoveries. The results can help them gain efficiency, lower costs, and even innovate. In the past, governments were Palantir's primary customers, but in recent years, particularly with the launch of Palantir's Artificial Intelligence Platform (AIP), commercial business has soared. Today, government and commercial customers are key contributors to revenue, and total revenue climbed 70% to $1.4 billion in the recent quarter. The company also is doing an excellent job balancing growth with profitability, as we can see through its rule of 40 score. A score of 40% is considered very good, but Palantir has shown it can do much better, reaching 127% in the latest quarter. The company's message is also bright, with comments about surging demand for its systems from both government and commercial customers. This isn't surprising as AIP offers customers a quick and easy way to immediately apply AI to their needs. ExpandNASDAQ: PLTRPalantir TechnologiesToday's Change(1.25%) $1.90Current Price$153.50Key Data PointsMarket Cap$367BDay's Range$151.00 - $155.8852wk Range$66.12 - $207.52Volume2.1MAvg Vol49MGross Margin82.37% Palantir's valuation Now, let's turn to valuation. As mentioned, even though Palantir's price has come down, it still isn't cheap. PLTR PE Ratio (Forward) data by YCharts But it's important to note that such valuation measures don't account for earnings a few years down the road. So while Palantir may look expensive today, in the future, as earnings climb, valuation may come down considerably. This has been the case with other tech giants at earlier stages of their growth stories, from Amazon to Alphabet. AMZN PE Ratio data by YCharts If investors refused to buy those companies due to valuation concerns several years ago, they would have missed out on some important tech growth opportunities. Palantir may be on the same path as those market giants. The company has been around for more than 20 years, building its technology and gaining the loyalty of government customers. And today, the commercial customer represents a major new growth driver. All of this means Palantir could deliver significant earnings and stock price gains in the years to come, suggesting the stock might be a bargain today.Read NextMar 12, 2026 •By Keith SpeightsCould Buying Palantir Technologies Today Set You Up for Life?Mar 12, 2026 •By Harsh ChauhanWhy March Could Be a Turning Point for Palantir StockMar 12, 2026 •By Danny Vena, CPAPalantir and Nvidia Join Forces to Tackle This $600 Billion OpportunityMar 12, 2026 •By Sean Williams2 of the Most Sought-After AI Stocks Can Plunge Up to 68%, According to Select Wall Street AnalystsMar 11, 2026 •By Keithen DruryPalantir Is Up More Than 2,200% Since 2023.

Can Its Run Continue?Mar 11, 2026 •By James HiresThe Biggest Bet in Tech Isn't on Polymarket. It's This AI Stock.About the AuthorAdria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.TMFAdriaCiminoX@adria_in_parisStocks MentionedPalantir TechnologiesNASDAQ: PLTR$153.50(+1.25%)+$1.90AlphabetNASDAQ: GOOGL$303.57(-1.66%)-$5.13AmazonNASDAQ: AMZN$209.42(-1.52%)-$3.23AlphabetNASDAQ: GOOG$303.21(-1.69%)-$5.21*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.