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Palantir’s Stock Analysis Valuation Assumptions:

Today I’ll make a stock analysis based on the Discounted Cash Flow Model.

Here’s my assumptions:

Risk Free Rate (10 Years Interest Rate Swap): 4.131%

Risk Premium (Taken from the Aswath Damodaran equity premium spreadsheet): 4.33%

Interest Rate Spread on The Risk free rate ( For the cost of debt calculation): 1%

HISTORICAL DATA

Revenue growth in the last 7 years (CAGR): 36.92%

Earnings growth in the last 7 years (CAGR): / (went from negative earnings of $580M in 2018 to positive $570.7M TTM as of now)

Unlevered Free Cash Flow growth in the last 5 years (CAGR): 82.01%

FUTURE ASSUMPTIONS

End of Year FCF growth: 80%

Growth until end of 2026: 50%

Growth until end of 2034: 40%

Perpetual growth: 3.5%

Net Debt: -5.186B

Outstanding Stock Options Present Value Assumption: $19.177B

Stock Appreciation Rights Valuation Assumption: $0.396B

Restricted Stock Units Present Value Assumption: $7.71B

Stock Valuation based on these assumptions: $101

Last update 05/16/2025

All the content in this newsletter should be taken as informational content only. THIS IS NOT FINANCIAL ADVICE! Do your own Due Diligence before investing or contact a professional financial advisor.

I don’t have a position in Palantir (PLTR) and I don’t plan to add a position in the coming days.