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SpaceX Stock Now Has a Price to Sales Ratio Over 115x. Is It Worth Buying Anyway?


Even after cooling off from its post-IPO rally, Space Exploration Technologies (NASDAQ: SPCX), better known as SpaceX, has a market cap of $2.25 trillion and is one of the most valuable companies in the world. Based on its revenue of about $19.3 billion over the past four quarters, SpaceX has a price-to-sales ratio of about 116.

Let’s be clear. That’s an incredibly high multiple. Some of the most rapidly growing AI infrastructure stocks trade for P/S multiples in the 40-50 range. The average S&P 500 company trades for about 3x sales. But there’s more to the story. The price-to-sales ratio of 116 is a backward-looking metric. The more important thing to consider is whether SpaceX’s revenue in 2027, 2028, and beyond will justify it.

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What will SpaceX’s revenue be?

SpaceX’s revenue is a unique situation because its trailing 12-month revenue and what investors should expect going forward are two different things.

The biggest reason is SpaceX’s recent AI compute deals. Between three separate deals with Anthropic, Alphabet‘s (NASDAQ: GOOGL)(NASDAQ: GOOG) Google, and Reflection AI, SpaceX will be receiving about $2.32 billion per month in AI compute revenue once all three deals are in effect (starting in October). That’s $27.8 billion in annual revenue from these three deals alone.

Beyond the AI compute deals, it’s important to point out that SpaceX’s Starlink satellite internet service grew revenue by 50% year-over-year in 2025 and has barely scratched the surface of its addressable market opportunity. Plus, once SpaceX’s much larger Starship rocket begins commercial flights, it could be a big revenue growth driver.

SpaceX’s revenue will almost certainly grow substantially in the second half of 2026 and beyond. Looking ahead to 2027, there’s a solid base case to be made that SpaceX will get about $22-24 billion in revenue from Starlink, $30 billion from xAI (including the AI compute deals, the X social media platform, and Grok, and about $6 billion from the rocket launch business, for a total of about $59 billion. This would give SpaceX a much lower P/S multiple of 38 based on its current valuation, and revenue could potentially be even higher if the company gets additional AI compute deals.

Is SpaceX worth buying?

The biggest caveat is that even a P/S of 38 is expensive, and we have no idea whether SpaceX will be profitable in 2027. There will likely still be a lot of future revenue and earnings growth priced into the stock. The bottom line is that (assuming its AI compute deals produce the three years of revenue that is expected) SpaceX’s stock is effectively much less expensive than its 116x P/S multiple implies. But it’s still an expensive business. Approach it with that in mind.

Should you buy stock in Space Exploration Technologies right now?

Before you buy stock in Space Exploration Technologies, consider this:

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Matt Frankel, CFP® has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

SpaceX Stock Now Has a Price to Sales Ratio Over 115x. Is It Worth Buying Anyway? was originally published by The Motley Fool



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