Morningstar's Fair Value for SpaceX (SPCX) Stock Is $62. The Stock Trades at $157. One of Them Is Wrong by $1.2 Trillion.
Yahoo Finance ·
If you've been reading Motley Fool articles on Elon Musk's company, Space Exploration Technologies ( SPCX 1.00% ) , or SpaceX, you've probably seen more than a few of my colleagues deem the stock overvalued. Stock analysts at Morningstar see the stock similarly. In fact, Morningstar estimates that the stock is trading at a 152% premium. It placed a fair value of $62 on the stock as of June 16, which is well above the $154 closing price as of June 24. That price gives the company a market capitalization of $2.05 trillion. If the price were $62, the corresponding market cap would be around $800 billion -- still a hefty sum. The difference between the two valuations is a whopping $1.2 trillion. You might want to check SpaceX's price-to-earnings (P/E) ratio , but you can't -- because there are no earnings. The company is currently losing money, and a lot of it. In such situations, though, you can check out the price-to-sales ratio, which uses the business's revenue instead of earnings. In SpaceX's case, its recent price-to-sales ratio was 78 (as of June 24). That's a steep number.
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