This company lost $5 billion last year. What makes it worth $2.5T right now?

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SpaceX now trades at 110x sales, 75% higher than Palantir’s 63x and the highest valuation multiple in megacap tech

Step aside, Palantir (PLTR), there’s a new valuation multiple king in the megacap tech stock town: SpaceX (SPCX).

The insight: With its scorching-hot debut on public markets now in the books, SpaceX is trading on a trailing 12-month price-to-sales ratio of 110 times, compared to 63 times for Palantir, which has long been viewed as the most richly valued megacap tech play in the game.

For perspective on how optimistic investors are about SpaceX, the price-to-sales ratio for the S&P 500 (^GSPC) is 3.5 times. Even AI darling Nvidia (NVDA) clocks in with a ratio of 20 times.

The price-to-sales ratio is a valuation metric calculated by dividing a company’s market capitalization (or share price) by its total revenue. It shows how much investors are willing to pay for each dollar of sales.