Palantir stock analysis. Ticker: PLTR
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Palantir reported earnings two weeks ago. Since then, the stock has fallen around 18% to below $15 a share. That means Palantir has a current valuation of 31.5 billion dollars. It’s got 3.1 billion of cash and investments and no debt so the enterprise value is 28.4 billion.

Revenue in the latest quarter rose 13% taking the trailing 12 month total past 2 billion. Net income was positive in the quarter but the trailing twelve-month total is still negative at minus 43 million but free cash flow is positive at 375 million.

So right now, Palantir stock is valued at 14 times revenue or 76 times free cash flow. That’s an expensive multiple but Palantir is growing consistently and it’s got solid free cash flow margins of 27%. In other words, the company is able to convert almost a third of its top line revenue to free cash flow. As a result Palantir’s cash pile continues to climb and that’s a good sign for such a young, growing company.

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