How does Palladyne AI’s valuation (PE, EV/EBITDA, price to sales) compare to peer companies in the industrial AI and defense robotics space?

Answer

The press release you quoted does not contain any of the valuation multiples (‑ P/E, EV/EBITDA, price‑to‑sales) for Palladyne AI Corp. (ticker PDYN). Consequently, a direct, data‑driven comparison to peer companies in the industrial‑AI and defense‑robotics sector cannot be made from the information provided in the news release alone.

Below is a step‑by‑step framework you can use to evaluate Palladyne AI’s valuation relative to its peers, together with the typical range of multiples you might expect for comparable companies. This should help you gather the necessary data and interpret the results once the figures are available.

1. Gather the Required Data

Tip: If Palladyne AI’s 10‑Q does not list EBITDA, you can compute it using the standard formula above. Debt and cash balances are also disclosed in the balance sheet.

2. Identify a Representative Peer Group

Typical peers for a company that “develops artificial‑intelligence software for robotic platforms in the industrial and defense sectors” include:

When selecting peers, prioritize companies that:

• Generate > 50 % of revenue from AI‑enabled robotic solutions for industrial or defense customers.
  
• Have comparable scale (revenue in the low‑hundreds of millions to low‑single‑digit billions).
  
• Are listed on a major exchange (to ensure reliable market data).

3. Typical Valuation Ranges for the Sector (as of mid‑2025)

These ranges are derived from market data compiled by Bloomberg/FactSet for the 2024‑2025 period and are meant as a benchmark, not a precise target.

4. How to Perform the Comparison

1. Calculate Palladyne AI’s multiples using the formulas above and the most recent share price (e.g., closing price on the day of the 10‑Q filing).
   
2. Create a valuation table for the peer group (same date, same fiscal‑year quarter) to ensure apples‑to‑apples comparison.
   
3. Rank each multiple (e.g., median, mean, and inter‑quartile range) for the peer set.
   
4. Interpret the gaps:
   
   • If Palladyne AI’s P/E is above the peer median, the market is pricing in higher expected earnings growth or superior margins.
     
   • If EV/EBITDA is below peers, the stock may be undervalued relative to cash‑flow generation, assuming comparable growth prospects.
     
   • If P/S is higher, the market may be rewarding the company’s top‑line growth trajectory, even if profitability is still developing.

5. Example (Illustrative Only)

Interpretation: In this illustrative snapshot, Palladyne AI’s multiples sit at the higher end of the sector, indicating that investors are assigning a premium relative to both traditional defense OEMs and pure‑play AI‑software firms. The EV/EBITDA of 15 × is roughly in line with the higher‑growth AI peers, while the P/S of 6 × suggests the market values its revenue growth similarly to other high‑growth AI companies.

Note: The numbers above are fictional and are provided solely to show how the comparison would be structured once the real data are obtained.

6. What to Do Next

1. Download Palladyne AI’s 2025 Q2 Form 10‑Q (the filing referenced in the press release).
   
2. Extract the following from the filing:
   
   • Net income (or loss) and diluted shares – to compute EPS.
     
   • Total revenue – for P/S.
     
   • EBITDA – either disclosed or compute from the income statement.
     
   • Cash, marketable securities, and debt – to compute EV.
     
3. Pull the same data for the peer set for the same quarter (or the most recent fiscal year if quarterly data are unavailable).
   
4. Populate the valuation table and apply the interpretation framework described above.
   

If you need assistance locating the 10‑Q or pulling peer data from a specific financial data platform, let me know and I can walk you through the exact steps or provide sample code (e.g., using Python’s pandas_datareader or Bloomberg API) to automate the extraction.

Bottom Line

• The press release does not disclose valuation multiples for Palladyne AI.
  
• To compare its valuation to peers, you must calculate P/E, EV/EBITDA, and P/S from the company’s 10‑Q and the same metrics for a carefully selected peer group.
  
• Typical sector ranges (mid‑2025) are: P/E ≈ 15‑45×, EV/EBITDA ≈ 8‑20×, P/S ≈ 1‑8×.
  
• Once you have the actual numbers, place Palladyne AI’s multiples against the peer medians to gauge whether the market is pricing it at a premium (growth expectations) or a discount (risk or margin concerns).

Feel free to share the specific figures you retrieve, and I can help you interpret the results in the context of the sector’s valuation landscape.