
What would it take for PLTR to return 250% from here?
Palantir trades at roughly 110x earnings, which looks extremely expensive on the surface.
But here is the interesting part:
This scenario assumes PLTR grows earnings 50% annually for five years while its P/E falls all the way from 110x to 50x.
Even with that massive multiple compression, the stock could still generate:
- 245% total return
- 28% annualized return
- 659% cumulative earnings growth
That is what extreme growth can do.
The real debate is not whether PLTR is expensive. It clearly is.
The debate is whether Palantir can grow fast enough for long enough to make today’s valuation look reasonable in hindsight.
Is 50% annual earnings growth realistic, or is this still too optimistic?