SpaceX Is Worth More Than Most S&P 500 Companies. Is That Valuation Rational?
The company's mission to establish humanity on other planets has fired up the investment community.
Overview
In June, Elon Musk's Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, enjoyed the biggest Wall Street IPO in history. The highly anticipated public debut was so successful that SpaceX instantly became one of the most valuable companies in the world -- bigger than most of the other businesses in the S&P 500 (SNPINDEX: ^GSPC) by market capitalization.
That startling achievement speaks volumes about the investor's eagerness to own a piece of SpaceX and its exciting vision for humanity's future. But since its initial public offering, shares have steadily declined, sinking below their IPO price of $135 per share.
Details
Does this price drop signal a buy opportunity? SpaceX continues to sport a massive market cap of $1.5 trillion, so, understandably, investors wonder if the company's valuation is reasonable.
Source
Originally published at www.fool.com.