If Palantir’s P/E were to align with its guidance and a more reasonable valuation, a PEG of 1.5–2.0 is appropriate given its growth profile. This suggests a forward P/E range of 60–80. Alternatively, reverting to its historical average of 98 could also be justified, though it’s on the higher end. A P/E of 189 is significantly above what the guidance and growth projections support, indicating the market has priced in overly optimistic expectations or speculative fervor.

Thus, a P/E of 60–80 would better align with Palantir’s 2025 guidance and market norms for high-growth tech firms. If you want a single figure, 70 splits the difference and reflects a PEG of ~1.75, balancing growth and valuation discipline.