Billionaire Ron Baron Believes SpaceX Will Be Worth $30 Trillion by 2040. Here's Why That's Not Egregious.
The suggestion seems outrageous until you look at all the businesses it's in and begin crunching some numbers.
Billionaire Ron Baron Believes SpaceX Will Be Worth $30 Trillion by 2040. Here's Why That's Not Egregious.
Overview
The looming initial public offering of SpaceX is unsurprisingly drawing out predictions of the company's future value. And, as you might imagine, some of them are shockingly bullish. None is as optimistic, however, as billionaire investment manager Ron Baron's. He thinks SpaceX could be worth $30 trillion within the next 10 to 20 years, up more than 1,600% from the IPO's implied valuation of only $1.75 trillion.
The thing is, that's not as unreasonable as it sounds.
Details
The prediction is wild in a lot of ways, not the least of which is the sheer size of the number. For perspective, the stock market's biggest company right now is Nvidia, but its current market cap is a mere $5 trillion. It would require average annual stock gains in excess of 20% for the next 14 years for SpaceX to reach the $30 trillion mark by 2040.
Source
Originally published at www.fool.com.
