SpaceX: Far Too Expensive from a Fundamental PerspectiveSpace Exploration Technologies CorpBATS:SPCXSwissquoteA behavior is often observed in the stock market among retail investors. It tends to occur when a very famous and inspiring company goes public. In such cases, retail investors often rush in and seek to participate massively in the IPO. This is exactly what has just happened with the SpaceX IPO. Demand from retail traders has been enormous, and volatility during the first trading sessions of SpaceX stock has already been very high. Market history has shown that, more often than not, participating in an IPO is not the ideal timing, even when the company is highly renowned and possesses enormous fundamental potential. The better approach is often to wait for a significant correction in the stock price during the months following the IPO and take a position at that stage. In the case of SpaceX, it is important to keep in mind that the company is not yet profitable. That is where the risk lies. Investors rushing into the stock today are not paying for the company’s current results, but rather for an extremely optimistic scenario regarding its future development. When a company is valued primarily on growth expectations, even a small disappointment can trigger substantial declines in the share price. The figures speak for themselves. With a price-to-sales ratio close to 95 times annual revenue, SpaceX is trading at valuation levels rarely seen in financial market history. For comparison, NVIDIA, widely regarded as one of the most exceptional companies in the world due to its dominant position in artificial intelligence, trades at a price-to-sales ratio of approximately 20 times. Micron Technology, another major beneficiary of the AI revolution, trades at around 15 times sales. The table below presents a valuation comparison between SpaceX, Nvidia, and Micron stocks. The gap becomes even more striking when examining EBITDA multiples. SpaceX is trading at between 75 and 100 times its estimated EBITDA, compared with around 38 times for NVIDIA and only 16 times for Micron. In other words, the market is currently valuing SpaceX as if its future growth were virtually guaranteed for many years to come. Of course, the company has exceptional strengths. Starlink continues its rapid expansion, government contracts are plentiful, and the Starship program could revolutionize the space industry over the long term. However, even the best companies in the world can become poor investments when purchased at excessive prices. In the short term, SpaceX’s fundamental potential is probably real, but the current valuation leaves very little room for error. For this reason, it may be wiser to wait for a consolidation phase or a significant correction before considering a long-term investment in the stock. 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