Wondering if Planet Labs PBC is a hidden gem or just another name among growth stories? You are not alone, especially when the question of value is front and center for investors right now.
The stock has experienced eye-catching moves lately, with a surge of 182.4% year-to-date and an incredible 267.5% over the past year, even as recent weeks saw pullbacks of -16.3% in 7 days and -14.5% across 30 days.
Sharp rallies like these have lined up with increased investor attention after announcements of new satellite launches and expanded partnerships across global imaging and analytics customers. News highlighting the company’s potential to reshape earth imaging has fueled both optimism and volatility.
Despite the excitement, Planet Labs PBC currently scores 0 out of 6 on our undervaluation checks. We will dig into traditional valuation approaches in a moment, and stick around for a less familiar, yet arguably more insightful, way to judge value at the end.
Planet Labs PBC scores just 0/6 on our valuation checks. See what other red flags we found in the full valuation breakdown.
The Discounted Cash Flow (DCF) model is a classic valuation approach that projects a company’s future cash flows and then discounts them back to their present value, providing an estimate of intrinsic worth today. For Planet Labs PBC, this method is applied using a 2 Stage Free Cash Flow to Equity model.
Currently, Planet Labs PBC reports a Last Twelve Months Free Cash Flow of $33.36 million. Analyst estimates cover the next several years, forecasting Free Cash Flow of $10.11 million by 2028. For years beyond analyst coverage, further projections are extrapolated and show a decreasing cash flow trend over the next decade.
Based on Simply Wall St’s DCF calculation, the intrinsic value of Planet Labs PBC’s shares is about $0.27 per share. This stands in stark contrast to the current trading price, implying the stock is 4020.3% above its DCF-estimated value. This signals significant overvaluation according to this traditional cash flow perspective.
Result: OVERVALUED
Our Discounted Cash Flow (DCF) analysis suggests Planet Labs PBC may be overvalued by 4020.3%. Discover 894 undervalued stocks or create your own screener to find better value opportunities.
PL Discounted Cash Flow as at Nov 2025
The Price-to-Sales (P/S) ratio is a useful valuation metric, especially for companies like Planet Labs PBC that may not be consistently profitable at this stage of their growth. The P/S ratio helps investors compare a company’s stock price to its revenues, which is particularly helpful when earnings may be negative or volatile.
Story Continues
Growth expectations and the level of risk in a business play vital roles in determining what a reasonable or “fair” P/S ratio should be. Fast-growing, innovative businesses frequently command higher multiples. In contrast, greater risk or unpredictable profitability can drive the fair value down.
Currently, Planet Labs PBC trades at a P/S ratio of 13.15x. This stands out against the industry average of 1.33x and the peer average of 2.59x, highlighting the premium investors are willing to pay for the company’s future prospects. However, looking only at these benchmarks can overlook unique business factors.
This is where Simply Wall St’s proprietary “Fair Ratio” adds value. Planet Labs PBC’s Fair P/S Ratio is calculated as 4.06x, reflecting a personalized assessment based on growth forecasts, profit margins, risk profile, market capitalization and its specific industry. This Fair Ratio is a more nuanced benchmark, providing a tailored perspective that generic industry averages or peer comparisons cannot match.
When comparing Planet Labs PBC’s actual P/S of 13.15x to its Fair Ratio of 4.06x, the current valuation appears significantly above what is justified by its underlying fundamentals and risk profile.
Result: OVERVALUED
NYSE:PL PS Ratio as at Nov 2025
PS ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1417 companies where insiders are betting big on explosive growth.
Earlier we mentioned there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is a simple yet powerful method of investing that goes beyond numbers alone. It is your personalized story about a company’s future, connecting what you believe about its potential to a tailored financial forecast and, ultimately, a fair value estimate.
On Simply Wall St’s Community page, millions of investors use Narratives as an accessible tool to express their view of Planet Labs PBC by inputting their own assumptions about revenue growth, profit margins, and industry trends. Narratives help you make more confident buy or sell decisions, because comparing your Narrative’s Fair Value with the current Price quickly highlights opportunities or risks based on your unique thesis.
Unlike traditional models that rarely update, Narratives evolve automatically as new information comes in, such as earnings releases or major news. This ensures your valuation always reflects the latest business reality.
For Planet Labs PBC, one investor’s Narrative might focus on industry leadership, booming demand for geospatial data, and strong government contracts, resulting in a fair value of $14.55. Another investor might prioritize near-term risks and shrinking margins, leading them to a fair value of $4.50.
Do you think there’s more to the story for Planet Labs PBC? Head over to our Community to see what others are saying!
NYSE:PL Community Fair Values as at Nov 2025
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Companies discussed in this article include PL.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com