What is the next Palantir?
Investing metrics and valuation which are essential:
1. Market Cap vs Enterprise Value – provides an indication of long term debt
2. Gross Profit Margin – how much revenue is falling to the bottom line…how effective are they in making money.
3. Free Cash Flow and Net Income – are they generating cash flow and Net Income. Free Cash Flow and Net Income should be about the same.
4. Revenue Growth – is the company growing revenue at a high rate year-to-year.
5. Return on Invested Capital – determines objectively how effective the company is realizing returns on re-investing its capital
“Market Leaders” tend to lead the market in both bull and bear markets. They lead in rising during up markets and lead in falling during down markets.