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Palantir’s Valuation Is A Lord Of The Rings Fantasy

October 3, 2024
Michael Vi/iStock Editorial via Getty Images
Summary
  • Palantir was one of my highest-ranking companies in a SaaS screen I created. The company’s “perfect on paper” with strong metrics, rapid revenue growth, rising margins and huge TAM.
  • Qualitatively, Palantir has a huge moat, compelling narrative and clear mission-statement.
  • The “black box” nature of the company’s services and its controversial CEO give me pause.
  • Valuation measures are off-the-charts overvalued and its entry into the S&P 500 could be viewed as the “Inclusion Curse”.

Thesis

A few months back, I published an SA article entitled Screening for the Best SaaS Companies, in which I screened for the best SaaS companies out of a pool of 84 names. Palantir was the 10th highest-ranked.

Dom received his MBA in Management and B.S. Finance (Manhattan College) and was credit trained at New York University. Dom received the Financial Risk Manager (FRM) designation from GARP.Areas of expertise are: Exponential Age & SaaS software and Blockchain.https://www.youtube.com/channel/UCdTKlxmvT0JyT4X60gI-vEw
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