Rocket Lab Trades at 59 Times Revenue With Neutron Still Unflown
The launch company keeps setting records, and its backlog has more than doubled. The valuation assumes a much bigger company -- one that needs a rocket that hasn't left the ground.
Overview
By nearly every operating measure, Rocket Lab (NASDAQ:RKLB) is delivering. The space company's second-quarter revenue was a record. Its backlog was a record. Its third-quarter guidance calls for another record. And in June, the company announced an $8 billion agreement to acquire satellite operator Iridium Communications (NASDAQ:IRDM).
The stock reflects all of it. Even at about $73 as of this writing (roughly half its 52-week high of $151), Rocket Lab carries a market value near $45 billion. That is about 59 times the roughly $769 million of revenue the company generated over the four quarters through June 30, based on its last two earnings reports.
Details
To me, that is the figure to hold onto. Because the rocket anchoring the growth story behind that multiple, the medium-lift Neutron, has never flown.
Source
Originally published at www.fool.com.