The "Dean of Valuation" Thinks SpaceX Is Worth 28% Less Than Its $1.8 Trillion IPO Price. Here's Why.
Professor Aswath Damodaran just published his SpaceX valuation model.
The "Dean of Valuation" Thinks SpaceX Is Worth 28% Less Than Its $1.8 Trillion IPO Price. Here's Why.
Overview
With reusable rockets, a growing constellation of satellites providing internet connectivity, and now a major push into artificial intelligence (AI) through xAI, SpaceX is swiftly becoming one of the most inspirational companies at the intersection of technology and space exploration. Some leading Wall Street banks have floated valuations for SpaceX well into the trillions, and CEO Elon Musk agrees: For its initial public offering (IPO) on Friday, SpaceX will list on the Nasdaq at a valuation of $1.8 trillion.
However, valuation expert Aswath Damodaran, a New York University Stern School of Business professor, recently offered a slightly more grounded perspective. Widely known as the "Dean of Valuation" for his transparent financial models and willingness to publish spreadsheet assumptions for public scrutiny, Damodaran has a reputation for sifting through hype narratives with disciplined, data-driven analysis.
Details
Drawing on details from SpaceX's S-1 filing with the Securities and Exchange Commission, Damodaran has concluded that the company is worth $1.3 trillion, about 28% lower than management's IPO price. While that's still an enormous figure, Damodaran's analysis concludes that SpaceX's target price likely rests on some assumptions that may prove overly optimistic.
Source
Originally published at www.fool.com.
