Karp suggested that based on Palantir’s financials, he could see $15-$18B in FCF in 2-3 years…
They’re currently operating at 60% margins. If we lean more conservative and assume that drops to 50%, that would imply Palantir’s revenue is 30B-37.5B! Basically a 5x from today.
We could see a market cap of 750B-$900B or $360-$432 per share, if we throw a 50x multiple of FCF which would be ridiculous for a behemoth growing like this.
60-80x for a company growing like this would be more fair which would imply:
60x = 900B-$1.08T market cap or
$360-$432 per share
70x = 1.05T - $1.26T market cap or $420-$504 per share
80x = $1.20T - $1.44T market or
$480-$576 per share
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