SpaceX IPO: Great Business, Crazy Valuation?

Added: 2026-06-02

[00:00:00]SpaceX is being valued at 1.75 trillion.

[00:00:03]That's what they want to sell the business for to retail investors. The current annual revenue is $16 billion.

[00:00:11]Current profit before tax and depreciation and amortization is $8 billion.

[00:00:17]So, if you take the total valuation divided by the revenue, you get a price to sales ratio of 109 times. If you take the total value divide by the profits, which is the EBITDA profits, you're getting a price to EBITDA ratio of 218 times. Now, this is based on last year's revenue and profits. But, how about we calculate the forward price to sales, the forward price to earnings? Well, depends on the projections. So, let's be very optimistic and let's take the aggressive projection. If the company is looking to double its revenue in 1 year to 32 billion and double its profits to 16 billion. Let's take the most aggressive projection. At a current valuation of 1.75 trillion, that is still a forward price to sales ratio of 54 times and a forward price to EBITDA ratio of 109 times.

[00:01:11]So, is that expensive or cheap?