Wall Street is using unconventional comparisons, including AI firms, to justify SpaceX’s potential $1.75 trillion IPO valuation, despite concerns over high multiples and lack of traditional peers., Markets, Times Now

SpaceX IPO at $1.75 Trillion? Wall Street’s Wild New Math Will Surprise You

Wall Street is using unusual ways to value SpaceX as it prepares for what could be the biggest IPO ever. Instead of comparing SpaceX with traditional aerospace companies like Boeing or telecom firms like AT&T, some investors are looking at very different companies. These include Palantir Technologies and AI-related infrastructure firms like GE Vernova and Vertiv, a Reuters report said.

The goal is to justify a possible $1.75 trillion valuation for SpaceX.

According to a Reuters report, SpaceX has already filed confidentially for a US IPO and may raise around $75 billion. The company is also expected to hold an analyst day on April 21.

Also Read: Elon Musk’s SpaceX Moves Closer To IPO, Sets June Timeline For Roadshow

At such a high valuation, SpaceX looks expensive by traditional standards. For example, companies like Lockheed Martin and Boeing trade at much lower earnings multiples. Similarly, telecom companies like Verizon are usually used to value internet services, but they also have lower growth rates.

However, many investors believe these comparisons miss the bigger picture. They argue that SpaceX is not just another aerospace or telecom company, but a business built to benefit from long-term global trends.

SpaceX CFO Bret Johnsen told IPO bankers, “it's "pretty darn exciting" to sell into "the largest total addressable market ⁠in human history" - a potential $370 billion in space business.” He also said the company’s Starlink internet service could target a $1.6 trillion market, according to people familiar with the call.

For Starlink, instead of comparing it with traditional telecom firms, some investors prefer to compare it with fast-growing tech companies like Palantir. One investor told Reuters, "I wouldn't look at a legacy AT&T and Verizon as being very relevant to the economic model ‌for Starlink, even though ⁠they're both in the business of giving you communication."

Palantir is currently trading at very high valuations - about 43 times expected revenue and 75 times earnings. Supporters of SpaceX say this shows that markets are willing to pay a premium for high-growth companies.

Still, SpaceX could be even more expensive, with estimates suggesting it may trade at 110 times its 2025 revenue, according to PitchBook.

PitchBook analyst Franco Granda said, "Investors should size positions with the understanding that they are paying a platform premium today for infrastructure-monopoly economics tomorrow."

Even for its rocket business, investors are comparing SpaceX to AI-related industrial firms rather than traditional aerospace companies. They argue that SpaceX’s reusable rockets and cost advantages make it unique.

But not everyone agrees with this approach.

NYU professor Aswath Damodaran told the outlet, “Pricing is always going to be messy here." He added that investors may already believe in SpaceX and are now trying to justify the high valuation. “They're hoping there's enough mood and momentum behind SpaceX, and when it goes public, the mood and momentum will take the stock up."

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