SpaceX IPO Valuation Targets Price-to-Sales Ratio 100 Times Higher Than Current Revenue

Retail investors may be allocated up to 30 percent of SpaceX shares in its initial public offering. These individual investors are more likely to hold shares than flip them if they are true believers in Elon Musk's vision. SpaceX is seeking a valuation of $2 trillion, which would make it the sixth-most-valuable U.S. company. This valuation is based on a revenue of less than $20 billion last year and a net loss of nearly $5 billion. A $2 trillion valuation would place the stock at more than 100 times its annual sales. For comparison, other trillion-dollar companies like Nvidia, Alphabet, and Apple have price-to-sales ratios of 21, 10, and 9 respectively. The stock price will incorporate all possible good news for years to come. This makes it unlikely that investors will see the return seen in Tesla's 31,000 percent rise since 2010.