When many investors talk about Palantir Technologies Inc. (NASDAQ: PLTR), they’ll point to a price-to-earnings (P/E) ratio of over 550x and a price-to-sales (P/S) ratio that is over 142x. These numbers support the idea that PLTR stock is overvalued. However, there’s another number that suggests the opposite may be true.
That's institutional ownership. This is a dynamic number because it’s based both on the number of shares outstanding and the number of shares owned by institutions. Both numbers change daily, but the data is usually only reported in terms of months.
