SpaceX Stock Now Has a Price to Sales Ratio Over 115x. Is It Worth Buying Anyway?
There are few stocks as richly valued as SpaceX, but there's more to the story.
Overview
Even after cooling off from its post-IPO rally, Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, has a market cap of $2.25 trillion and is one of the most valuable companies in the world. Based on its revenue of about $19.3 billion over the past four quarters, SpaceX has a price-to-sales ratio of about 116.
Let's be clear. That's an incredibly high multiple. Some of the most rapidly growing AI infrastructure stocks trade for P/S multiples in the 40-50 range. The average S&P 500 company trades for about 3x sales. But there's more to the story. The price-to-sales ratio of 116 is a backward-looking metric. The more important thing to consider is whether SpaceX's revenue in 2027, 2028, and beyond will justify it.
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Originally published at www.fool.com.