fin 3000 slides

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Let's break down the steps to calculate Free Cash Flow (FCF) for the company, starting by Converting the Income Statement from Accrual to Cash Basis. We begin by calculating Operating Cash Flow (on a cash basis), which is $994.71 million. Next, we calculate the change in Net Operating Working Capital (NOWC). The formula is: Change in current assets - Change in non-interest-bearing current liabilities. Using the values, we get: $1.097 billion - $149 million = $948 million. This represents the net investment the company has made in working capital. Then, we account for investments in fixed assets, such as property, plant, and equipment. The formula is: Change in gross plant property + Change in other assets. Adding the values: $19 million + $2.8 million = $21.8 million. This is the total amount spent on long-term assets. Calculate Free Cash Flow (FCF) Finally, we calculate Free Cash Flow using the formula:Operating Cash Flow - Investment in NOWC - Investment in Gross Fixed Assets. Substituting the values: $994.71 million - $948 million - $21.8 million = $24.91 million. This means the company has $24.91 million in Free Cash Flow, representing the cash available for distribution to shareholders or reinvestment after covering all expenses and investments.

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Let's take a quick look at two of Palantir's key competitors: Snowflake and C3.AI. Snowflake focuses on cloud-based data storage and sharing. It helps businesses store, organize, and access large amounts of data quickly and easily. C3.AI specializes in artificial intelligence for specific business needs, like predicting customer behavior or improving supply chains. It's used in industries like manufacturing and energy. While Palantir offers broad data solutions, C3.AI is more focused on specific AI applications.

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Palantir Technologies and C3.AI show clear differences in financial performance. For every dollar of revenue, Palantir keeps 80.6 cents after costs, while C3.AI keeps 70.7 cents. Palantir earns 5.4 cents in operating profit and 9.4 cents in net profit per dollar, but C3.AI loses $1.26 in operating profit and $1.10 in net profit. Palantir also uses its assets and equity more effectively, earning 6 cents for every dollar of assets and 7.9 cents for every dollar of equity, while C3.AI loses 25.4 cents and 30.1 cents, respectively. Both companies have strong liquidity, with over $5 in assets for every dollar of liabilities. Palantir has a low debt-to-equity ratio of 9.72%, while C3.AI relies mostly on equity, with a near-zero debt ratio. Overall, Palantir is more profitable and efficient, while C3.AI struggles financially despite strong liquidity.

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Palantir Technologies stands out as a strong investment due to its impressive financial performance and growth potential. The company boasts high profitability, with a gross margin of 80.62% and a net profit margin of 9.43%, reflecting efficient operations and consistent earnings. Its solid returns, including a Return on Assets (ROA) of 6.06% and a Return on Equity (ROE) of 7.94%, demonstrate effective use of assets and shareholder capital. Palantir also maintains excellent liquidity, with a current ratio of 5.55, ensuring it can easily meet short-term obligations. Furthermore, its low debt-to-equity ratio of 9.72% indicates minimal financial risk, providing flexibility for future expansion. With its positioning to capitalize on the rising demand for Artificial Intelligence and data analytics, Palantir offers strong growth potential. These factors make it a compelling case for reinvestment, and we would confidently buy this stock again.

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Palantir Technologies was founded in May 2003 by Peter Thiel, Nathan Gettings, Joe Lonsdale, Stephen Cohen, and Alex Karp. The company specializes in creating advanced data analysis software, including Gotham, Foundry, and Apollo. Gotham is widely used by U.S. government agencies for intelligence and defense operations, Foundry helps businesses like healthcare and financial institutions integrate and analyze their data, and Apollo manages software deployments at scale. Leveraging Artificial Intelligence, Palantir's tools identify patterns, predict outcomes, and support critical decision-making. Its mission is to provide a seamless user experience for analyzing data, enabling users to solve complex problems without requiring expertise in coding, statistics, or technical analysis.

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The Capital Asset Pricing Model (CAPM) is used to estimate the expected return on Palantir's stock based on its risk profile. The formula, calculates expected return using three key inputs: the risk-free rate (Rf), beta (β), and the market return (Rm). For Palantir, the risk-free rate is assumed to be 4.0%, based on the current 10-year Treasury yield, and the beta, which measures Palantir's sensitivity to market movements, is 1.7, sourced from Yahoo Finance. The market return is estimated at 10%, reflecting the historical average of the S&P 500. The equity risk premium (Rm - Rf) is therefore 6% (10% - 4%). Substituting these values into the formula, the expected return for Palantir is 14.2%, indicating the return investors can expect given the stock's risk and prevailing market conditions.

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Today, I'll be presenting an overview of our position in Palantir Technologies, ticker symbol PLTR. We currently hold 4,771.15 shares of Palantir Technologies. we purchased the stock priced at $34.93 per share. Our average cost per share stands at $70.91, At the current market price, the total market value of our position has risen significantly to $338,322.24. This reflects a clear indication of Palantir's recent growth and the potential for upward momentum.