Value investor Preston Pysh admits that Palantir (PLTR) appears cheaper than its current trading price of $186, yet he refuses to purchase the stock until it drops below $100. Pysh argues that while the headline P/E ratio overstates the company's expense due to rare underlying growth, the forward P/E of 108x leaves zero margin for error if the business stumbles. The article highlights a divergence between valuation models and investor psychology. Daniel Mahncke conducted a DCF analysis based on CEO Alex Karp's guidance, concluding that the fair value is approximately $240, with the price-to-sales ratio expected to decline from 60 to 20 as the Ontology platform establishes a moat in government and enterprise workflows. Pysh employs a 'halved-growth' stress test to distinguish between understandable business slowdowns and opaque growth drivers. He notes that while Lululemon's declines are easily attributed to consumer behavior, Palantir's massive Q2 revenue surge (92.83% total growth) makes it difficult for investors to articulate the specific variables driving the outcome without speculating. Despite strong fundamentals including $912 million in GAAP operating income and raised FY2026 revenue guidance, Pysh maintains that a disciplined investor must understand the machinery under the stock. He suggests that waiting for a lower entry point is a valid strategy but warns that such high-growth compounding may never revisit the $100 level, potentially causing investors to miss decade-long winners.