My Palantir Stock Price Prediction for 2025 | PLTR Stock Analysis | PLTR Stock Prediction

paler stock has been on an absolute tear in recent weeks the news about paler joining the S&P 500 Index and expansion deal with BP has only fueled the enthusiasm from investors the stock is doubled from the previous 12 months and is now trading at close to $35 a share this is already at the higher end of the price I predicted for paler stock by the end of 2025 so needless to say I need to update my pal paler stock price prediction for next year so in this video I'll share with you my previous price prediction for paler stock and show you the factors that have changed since then and I'll update that price prediction as well and of course as always I'll show you precisely where I'm getting the numbers from to make this prediction so you can judge the quality yourself hey everyone I wanted to take a moment to thank the sponsor of this video Mumu is a trading platform that allows individuals to buy and sell stocks and other Investments I posted the link to Mumu in the description below if you use that link to sign up to Mumu it'll help support my channel but more importantly you can get special incentives for using my link including up to extra 10 free stocks all right so one of the numbers I'm going to need to make this updated paler stock price prediction is next year's earnings per share expectations and those have increased slightly to 40 33 cents per share that's up from 40 cents per share 60 days ago now I'm going to use this to make my prediction for next year I'm also going to use a blended average growth rate to forecast palent years's 20126 earnings per share now for next year peners EPS is expected to grow by 19.4% but for the next 5 years it's expected to grow at 85% I think 19% is too low and I I think 85% is too high so I'm going to use a 50% growth rate EPS for the year after next to make my paler stock price prediction so I'm also going to use the forward price to earnings ratio which is currently sitting at all-time Highs at 80.56% my previous stock price prediction for paler the earnings per share expectations were at 40 cents and I still use the 50% growth rate because the forward EPS expectations are unchanged from the last time I did this video but what changed this time is the EPS for 2025 according to Wall Street analysts are now better they think 43 cents instead of 40 cents so we're getting roughly 10% more in EPS next year for paler the big change is the forward PE multiple last time I did this video palet was trading at a forward PE of 65 it's now trading at a forward PE of 80 this makes me nervous now I previously recently did this same type of video for Nvidia stock and the big difference between nvidia's valuation and paler valuation is in the expectations for next year nvidia's EPS are expected to be much higher than they previously were but its forward PE multiple is lower and it's uh similar here for paler in terms of the increase in EPS but also palente here's forward PE multiple is higher the multiple being this this high is a little bit more risky than if it were to be the earnings per share being higher now that's the big difference here and as you could see I had my previous 2025 Target between $32 per share and $35 per share that was according to the estimates I had at my disposal at the time of that recording which was roughly two months ago and you can see that video published on YouTube roughly two months ago on July 3rd so now that we have new numbers let's go ahead with our calculations again to update that stock price prediction for palente here so if the company's EPS remains on point now that's 43 cents for 2025 and if I apply a 50% growth rate to that 43 cents I get an EPS for 2026 at 65 cents and if you appli the 80P multiple to the 65 cents EPS you get a forward stock price for 2025 at close to $52 per share now that would be a considerable increase from the $34 per share the stock is currently trading at a roughly 50 % increase in one year although just in the previous year paler stock price has doubled so this wouldn't be as much growth as in the previous year but still I think paler stock investors would be happy with the 50% increase but if the forward PE multiple Falls to 60 then the stock price could rise but only to $39 per share if the forward PE multiple Falls even more to 50 the stock price could fall to $32 per share if the forward PE multiple Falls to 35 which is a scenario I think is very unlikely because in the last 3 years and in fact if I go beyond that well no you can't go beyond that because paler only recently became profitable but since paler became profitable I've been following this metric and anytime paler forward PE multiple falls in the mid to low 40s the stock price catches a huge Tailwind as a bunch of buyers jump in to capitalize on that valuation so a forward PE of 45 or lower seems like a valuation that attracts a lot of investors to paler stock they feel that's incredibly undervalued for paler anything below 45 so that's why I say a forward PE of 35 is unlikely for paler stock unless there is some huge downside event that causes the valuation to fall and causes investor enthusiasm to decrease substantially for paler stock needless to say I don't think that scenario is very likely but if it does happen the stock price could fall to $22 per share so all that being said out of these scenarios where do I think it's most likely which price do I think is most likely well I think the forward PE multiple is going to Trend lower I don't think the forward PE multiple is likely to rise much higher than where it's at and so I think the forward PE multiple between 80 and 60 is reasonable to assume and if I were to say what stock price is reasonable to assume for Palante here I would say in the range of $39 per share to $43 per share is my stock price prediction for paler stock now some of you might say that's too optimistic some of you might say it's too pessimistic and I would be very interested in in hearing your comments but besides just saying whether you think it's too low or too high tell me why you think that's the case do you think that price is going to be higher because the earnings per share are going to be better or do you think the price is going to be higher because the forward PE multiple is going to be higher so more than just telling me if you think it's pessimistic or optimistic I'd be interested in hearing your reasoning for making that case that's what's really interesting to discuss is the reasoning behind the different opinions of course there's going to be different opinions but I'd like to know why you have those different opinions that's what's interesting to me did you know that over 90% of the people that watch my channel are not subscribed it'll really help support my channel if you hit that subscribe button and oh by the way one of the benefits of being subscribed is that I take requests from subscribers more often than I do from nonsubscribers so if you prefer that 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