Skip to content

Palantir Technologies Inc. Class A Common Stock (PLTR) — WACC Analysis

WACC Breakdown

Palantir Technologies Inc. Class A Common Stock (PLTR) has a weighted average cost of capital (WACC) of 12.5%. The cost of equity is 12.5%, derived from a beta of 2.08 and a risk-free rate of 5.2%. The after-tax cost of debt is 4.0%. The capital structure is 100.0% equity and 0.0% debt.

Interpretation

A WACC of 12.5% indicates that the market perceives Palantir Technologies Inc. Class A Common Stock as higher-risk, requiring a greater return to compensate investors.

Investors can compare PLTR's WACC of 12.5% against industry peers to gauge its relative financing costs. A beta of 2.08 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

PLTR WACC: 12.47% for Palantir Technologies Inc. Class A Common Stock

Current inputs imply a 12.47% cost of equity and a 5.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Palantir Technologies Inc. Class A Common Stock Common Stock (PLTR) WACC Results
Weighted Average Cost of Capital
12.47%
Cost of Equity
12.47%
Risk-Free Rate5.19%
Beta2.08
Market Risk Premium4.23%
Cost of Debt
3.95%
Pre-Tax Cost of Debt5.00%
Tax Rate21.00%
Tax Shield1.05%
Capital Structure
Equity: 100.00%($481.81B)
Debt: 0.00%($0.00M)
Equity Component
12.47%
100.00% × 12.47%
Debt Component
0.00%
0.00% × 3.95%

Palantir Technologies Inc. Class A Common Stock (PLTR) WACC in context

Palantir Technologies Inc. Class A Common Stock (PLTR) currently screens with an estimated WACC of 12.47%. That blends a 12.47% cost of equity, a 5.00% pre-tax cost of debt, and a 100.00% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

What PLTR WACC implies

A 12.47% discount rate screens as a relatively high discount rate, which makes valuation more sensitive to execution and capital structure risk.

How this page calculates PLTR

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 2.08 and equity accounts for 100.00% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.