Is SpaceX Stock Cheap? 1 Wall Street Analyst Thinks So.
When Space Exploration Technologies (NASDAQ: SPCX) went public in June, the market loved the concept, but no one was calling it a bargain. Shares available to the public traded at around 100 times trailing 12-month sales, which is objectively pricey.
The company reported strong growth in its first public earnings report, released in August for the second quarter. As sales went up, the price-to-sales (P/S) ratio has come down, and today, SpaceX stock trades at 68 times sales. However, sometimes valuation is subjective, which is why a company like Palantir Technologies can command a P/S of 87, while Sandisk‘s multiple is only 12 despite growing much faster.
There are always other factors that help determine the valuation, and one Wall Street analyst says that SpaceX stock is cheap.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.