Palantir

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#1
Its a software company that people will be aware where they aggregate datasets for organizations, discover trends and flag it to the organization's decision makers for their decision. A thorough description for their business model is found here.

Palantir Business Model And Its Acquire, Expand, Scale Strategy - FourWeekMBA

However, my key interest is, is the current market valuation of USD $27 billion worth its salt?

Cashflow generated from the company is announced to be around 22-25% of its revenue.

They are guiding for 2021's full year revenue at US$1.5 billion and will grow annually at 30% until 2025. This means in 2025, the company revenue will be $4.28 billion. Hence cashflow generated will be about $1.05 billion.

At its current market capitalization, do you think it is worth based on its future prospects?

Secondly, what's your view on their business proposition and if the 30% growth rate for the next 4 years is an achievable target.
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#2
Just like leverage, these "relationships" amplify themselves on the way up but also on the way down. There isn't much skill involved and it just magnifies the outcome.

Palantir Failed to Spot Pattern in SPAC Debacle

By contributing money to the private investment in public equity (PIPE) deals that typically backstop SPAC transactions, it was able to quickly expand the commercial side of its business, reducing its reliance on state contracts. Government clients account for around 55% of sales.

The startup portfolio contributed around 6% of sales in the latest quarter, but even this modest amount of additional revenue had the potential to add billions of dollars to Palantir’s market capitalization: At the peak in 2021, Palantir was valued at $68 billion, or around 35 times sales.

In return Palantir’s “day zero” SPAC partners got some much needed capital, software to help them scale quickly and the chance to boast about working with a revered, secretive tech company.

https://www.washingtonpost.com/business/...story.html
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