Is Palantir's Valuation Finally Catching up to Its Growth?

Palantir Technologies has retreated nearly 40% from its November 2025 all-time high of $207.18 to $129, driven by Fed rate concerns and inflation pressures. While the company's business fundamentals remain strong with 30.5% revenue CAGR (2021-2025) and explosive profit growth, its valuation remains expensive at 93x current earnings and 39x sales. Analysts project 53% revenue and 65% earnings growth through 2028, but much of this growth is already priced in, limiting near-term upside to 3-24% over two years.