SpaceX takes Wall Street by storm: is it worth less than a thousand billion or more than five thousand?
Less than a week after its flotation, Elon Musk’s company has become one of the most controversial firms on the financial market
Is SpaceX worth less than a thousand billion or more than five thousand? Well, judging by the figures, Wall Street has never been so divided. Less than a week after its IPO, the world’s leading aerospace company has become one of the most controversial firms on the financial market. Of course, we might think the blame lies with the fierce controversies that have surrounded a highly controversial figure like Elon Musk for years. But no. This time, the divide lies in the analysts’ views. No one seems to agree on just how much Starlink’s parent company is actually worth.
According to data compiled by Bloomberg, the lowest target price set by analysts is that of Morningstar, which values the share at $63. At the other end of the scale is Arete Research, which has initiated coverage with a ‘Buy’ recommendation and a target price of $401. With the share trading at around $192, the difference between the two valuations exceeds 500 per cent.
The gap becomes even more apparent when expressed in terms of the company’s total market capitalisation.
At current prices, SpaceX is worth around 2.4 trillion dollars. If Morningstar’s target were applied, the valuation would fall to just under 800 billion. If, on the other hand, Arete Research’s target were applied, the value would exceed 5 trillion dollars.
This is an unusual range, even for a company that has only just been listed. By way of comparison, five thousand billion dollars would represent a market capitalisation greater than the combined current value of Apple and Microsoft at many points in their recent history. A colossal figure.
