Palantir's Valuation Paradox: Cheap or Bubble?

PLTR has risen 141% this year, and Jim Cramer recently stated that it is “unreasonably cheap”—this statement is worth exploring.

Data is here: Palantir's P/E ratio has reached 621, far exceeding any peers in the software industry. By traditional valuation standards, this is definitely a sky-high price. However, from the “Rule of 40” SaaS metric, its score is as high as 94%—combining high growth rate and profit margin improvement, it is unrivaled in the enterprise software sector.

This is the problem - which of the two logics is correct?

Traditional valuation methods (P/S, P/E, cash flow yield) suggest that PLTR is expensive; however, SaaS industry metrics indicate it is worth this price. Most institutional investors trust traditional methods more, so when faced with such high valuations, their choice is often to lock in profits rather than increase positions.

Creamer's viewpoint is a minority opinion. According to the logic of the vast majority of institutions, PLTR is more like a case of an excellent company being overvalued by the market—growth is indeed impressive, but the price has completely reflected, or even over-reflected, that growth.