SpaceX says it's worth $1.75tn as it targets largest stock market debut

[muriel_volestrangler]

Source: BBC

In a filing setting out plans for its initial public offering (IPO), SpaceX said its shares should go for $135 (£100) each, ratcheting up its own valuation of the firm to roughly $1.75tn.

Setting an estimated price for its stock listing so far in advance is a rare move, and the amount represents a large increase in SpaceX's previous valuation of $1.25tn earlier this year.

The revelation does not mean its shares will sell for the proposed price, as this will ultimately be decided by buyers. The price could go up or down.
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SpaceX is expected to start trading on the Nasdaq stock index on 12 June, making its price estimate one of, if not the earliest price estimates, in stock market history.

Read more: https://www.bbc.co.uk/news/articles/cvgz237n40jo

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iForex: some investors might baulk at SpaceX's huge valuation

"This eye-watering valuation looks set to see the business included in the Nasdaq with many questioning how anyone can justify such a stratospheric valuation at this level of fixed price, even before the book-building process has started.

"In doing this SpaceX runs the risk that some investors might baulk at the price tag, raising the risk it could come up short, as the investor road show gets underway.

"On any normal metric the numbers defy belief given that last year SpaceX lost $4.9bn on the back of total revenues of $18.7bn.

"While the increase in revenues of 33% from 2024 was welcome, most of the improvement came from its Starlink service, which contributed about $11.4bn.

"On the basis of last year’s revenues of $18.7bn, a $1.7tn valuation would equate to 92 times sales, which for a business that can currently be described as either an aerospace or telecoms business is stratospherically high."

https://www.theguardian.com/business/live/2026/jun/04/spacex-ipo-elon-musk-fears-significantly-overvalued-stock-markets-cars-jobs-live-news-updates?CMP=share_btn_url&page=with%3Ablock-6a211a0c8f082fe260655d54#block-6a211a0c8f082fe260655d54

[jmowreader]

1. One has to wonder what Musk is mixing into his weed

Let's compare SpaceX to a company that makes rockets that don't blow up, which is Lockheed Martin.

Lockheed Martin's trailing P/E ratio is 24.8x. If we applied this to SpaceX, their valuation would be $463.76 billion. There are three big differences between Lockheed Martin and SpaceX besides the fact Lockheed Martin's rockets always work: Lockheed Martin's quarterly revenue is $700 million lower than SpaceX's annual revenue, Lockheed Martin makes a lot of things that aren't rockets, and Lockheed Martin is profitable.

If I HAD to put a P/E ratio on SpaceX's stock I'd stick them somewhere between 12x and 15x for four reasons: they're only in two businesses (space launch services and satellite Internet) and they're not the only player in either one; there are no insurmountable barriers to entry in either one; they aren't profitable; and their CEO is a loose cannon on deck.

Ninety-two times earnings is ridiculous and the investing community knows it.