Parkev Tatevosian, CFA on $PLTR (Oct 29, 2026)

Palantir's stock is trading near its all-time highs , and of course I'm happy about that . Earlier this year at around $106 per share, I added Palantir to my portfolio and upgraded the stock to a "buy" rating , and I have repeated this recommendation throughout the year.

The company is scheduled to announce its quarterly financial results on November 2, 2026, and investors are asking me if it is still a buying opportunity. I will answer this question in this video , as well as review what I look forward to from Palantir and update my assessment, and estimate of the fair value of Palantir stock.

Of course, one of the reasons that attracts me to Palantir stock is that the company's business is booming .

Revenues are rising very rapidly and business is booming. In fact, the management team stated that the demand for AI supremacy has now taken off, and Palantir is the only company that has proven its ability to turn tokens into actual economic value.

Total revenue accelerated by 93% to reach $1.9 billion . Commercial revenues in the United States, the sector I am most excited about, also grew by 149% in the last quarter ended.

The total value of contracts concluded in the last quarter ended jumped 49% year-on-year , and the value of remaining business deals in the United States rose 124%. Operating profit margin rose to 47%, and income from operations increased to $912 million.

Cash flow from operations jumped to $1.2 billion, representing a margin of 63%. The company has an excellent balance sheet with over $9.2 billion in cash, short-term investments and zero debt.

These are the numbers you'd want to see from a company that's trading at a high valuation, and that valuation increase is ongoing. Palantir is currently trading at a forward P/E ratio of 85, which is the highest or closest price the stock has traded at according to this metric throughout 2026.

Of course, there were times when this stock traded at a higher valuation in 2025. At one point , it was trading at a forward P/E ratio of 125 or 130. And if you recall, I warned investors at those times that Palantir stock was overvalued, and you saw Palantir's stock price drop after I pointed out that the stock was overvalued when it traded at a forward P/E ratio above 100 . But that was last year.

Business has improved significantly since then . The balance sheet is much better. She has more customers. The total revenue is better. The margins are better, and the AI industry in general is more mature.

This may justify a higher valuation premium than Palantir shares have historically been. Based on the above, I believe that trading Balantir with a forward price-to-earnings ratio of 85 makes it a fair value.

This means that if Palantir's share price exceeds a forward price-to- earnings ratio of 100, I will still feel that the valuation is too expensive. This does not mean that I will sell my Palantir shares at that valuation, but I certainly would not be interested in buying more of them at those prices.

Today, I also updated my fair value estimate for Palantir shares, with a slight increase in my expectations for the free cash flows the company will generate. This valuation model takes into account Palantir’s estimated free cash flows from today to the very distant future , i.e., a decade and beyond.

I discount those cash flows to their present value using the weighted average cost of capital, which includes my estimate of the risks associated with the company.

After all those calculations, I estimate the fair value of this company to be $192. This is in comparison to its current market price of $199 at the time of recording this video.

Therefore, this falls within my margin of safety , which also indicates that Palantir's stock is valued at its fair value.

Whether you measure the company's performance using a forward price-to-earnings ratio or a discounted cash flow model, the stock appears to be fairly valued . Palantir started the year poorly, but has recovered and is now up more than 12% since the beginning of 2026, roughly matching the returns of the S&P 500.

As I mentioned, I upgraded the stock to a buy opportunity earlier this year when the stock price dipped below $110. That was also the time when I bought Palantir stock for my portfolio. My average cost per share is about $106.

I have upgraded Palantir to a buy opportunity, and I had previously classified it as a buy opportunity with a medium level of conviction. Therefore, today I made a significant change to my Palantir stock rating, lowering my conviction and confidence level in the buy rating .

Previously, I rated it as having a medium level of conviction, and today I have lowered it to a low level of conviction.

This is due to the price being so high that I no longer feel it is undervalued, and with a fair-priced company heading towards earnings reporting with above-average risk, I have lowered my confidence level in this rating.

So, to answer the question, do I think you should buy Palantir shares before the earnings update? I would say no. If I am interested in buying Palantir stock, I will wait until after the earnings announcement to make my allocation decision.

The stock does not appear to be undervalued , and in fact I see more downside risks than upside opportunities, especially with regard to these earnings figures . Since investors have less information than professional, informed, and other investors, I will wait until I have all the information released in the company’s quarterly financial report, and then make my decision the following day or days.

That's because between the time the company announced its quarterly financial results and today, a lot of information has emerged that is difficult for most investors to absorb.

For this reason, it is safer and less risky to wait until the figures are released by the company, and then make your decision with all the information at your fingertips. This puts you on a more equal footing with other, more professional investors and investors who have more information.

Personally, I will not buy or sell Palantir stock before this update for investors. I will wait for the figures to be released before making my decision about what I plan to do with Palantir, after I see the update and hear from the management team about their expectations for the future.