Palantir: The Myth Of Overvaluation Summary Palantir went through a large drop in pricing in Q4’21 and in the early days of 2022. Shares of Palantir are not overvalued, they trade at 16X FY 2025 projected free cash flow. Commercial revenue acceleration, new product launches, expansion of the free cash flow margin and potential SPAC deal pay-offs support Palantir’s valuation.

The new year is just fourteen days old and shares of Palantir (PLTR) already fell 12%, continuing a sell-off that started back in November 2021. I don't see any good reason or justification for the sell-off as Palantir will continue to grow its top line rapidly and new service offerings are set to fuel the firm's commercial growth. That Palantir is overvalued, is a myth!

There are few industries that have as fantastic growth prospects as the big data and analytics industry. Companies are accumulating more and more data from customers and their operations, requiring software solutions and artificial intelligence support to monetize this data most efficiently.

What am I most excited about, as a Palantir investor, is Palantir's opening of a new growth frontier in the big data world. Palantir will start to roll out its "Foundry for Crypto" in FY 2022 which offers banks, FinTechs and other companies involved in the crypto economy a way to validate customer information and to implement anti-money laundering tools. Since the crypto universe is still highly unregulated, Palantir's Foundry for Crypto could make a big difference in legitimizing this industry.

Blockchain technology and cryptocurrencies are here to stay and Palantir has a huge opportunity at its hands to develop a multi-million-dollar revenue business within a very short period of time. Key customers for Palantir's Foundry for Crypto are likely going to be financial institutions and crypto trading marketplaces like Coinbase (COIN) which have massive customer bases. Adoption of...

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