🌟🌟SpaceX
$SpaceX(SPCX)$ has landed on 12 June with a record shattering USD 2.1 trillion valuation, making it the biggest ever IPO in the history of Wall Street. It also welcomes the world's first trillionaire Elon Musk.
Oppenheimer's target price of USD190 vs Morningstar USD 63 are 2 extreme polar opposites.
Oppenheimer is pricing SpaceX as an un-bypassable space monopoly & has a trailing 133x price to sales multiple. It assumes that deep space exploration, Mars colony infrastructure & rocket travel will perfectly monetise on a clean timeline, completely ignoring the huge USD 4.94 billion net loss last year.
In contrast Morningstar has priced SpaceX as a capital intensive utility with a 33x trailing multiple.
I believe Morningstar's target price is more realistic. Yet investing in SpaceX is taking a leap of faith into the future with no certainty that it will succeed in its endeavours.
Ultimately it comes down to each individual's risk appetite.
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