Think SpaceX's IPO Is Too Expensive? 2 Recent Developments Could Change That
SpaceX is pricing its IPO at 95 times its 2025 sales, but that doesn't tell the full story.
Think SpaceX's IPO Is Too Expensive? 2 Recent Developments Could Change That
Overview
SpaceX is the most anticipated IPO in a long time -- possibly ever. If the company successfully raises $75 billion at a $1.77 trillion valuation, as it's expected to do, it would be several times larger than the previous "largest IPO" record holder.
One of the most common reasons I've seen for investors not planning to buy shares in the IPO is valuation. And it's certainly easy to see why. SpaceX generated $18.7 billion in revenue in 2025, which means that at the targeted valuation, the stock would be priced at about 95 times sales at the IPO price. This is for an unprofitable company whose revenue, quite honestly, did not grow particularly fast last year -- at least not fast enough to justify such a rich valuation.
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Originally published at www.fool.com.
