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When it became clear that SpaceX was headed toward its initial public offering (IPO), most investors could reasonably expect it to be one of the largest ones in recent memory. However, few would've predicted it would become the largest IPO in stock market history.

SpaceX is set to sell 555,555,555 shares at $135 each during its IPO on June 12, raising $75 billion and starting with a valuation of around $1.77 trillion. And while beginning your public debut as the world's eighth most valuable public company (based on market caps on June 8) is quite the feat, the valuation itself isn't the most jarring number. Let's take a look at what it is.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Market cap and valuation by themselves don't necessarily tell you if a stock is "cheap" or "expensive," but you can get an idea of it when you compare it to a company's revenue or profit. Since SpaceX isn't profitable (it lost $4.9 billion in 2025), it's better to look at how its revenue compares to its valuation.

Last year, SpaceX made $18.7 billion in revenue. If we use that figure, its price-to-sales (P/S) ratio -- which tells you how much you're paying per $1 of a company's revenue -- would be 93.6. There's expensive, and then there's that.

For perspective, here is the current P/S ratio of some notable tech companies:

Company

Price-to-Sales Ratio

Broadcom (NASDAQ: AVGO)

25.5

Nvidia

20.0

Micron

18.2

Taiwan Semiconductor Manufacturing 

16.7

Tesla

14.8

Alphabet

10.5

Apple

10.0

Microsoft

9.7

Meta Platforms

7.0

Amazon

3.6

Data source: YCharts. P/S ratios as of June 8.

SpaceX would trade at more than 3.5 times Broadcom's price, which is growing revenue 48% and reported $9.31 billion in net income in its most recent quarter (ended May 3). And even Broadcom is very expensive by most standards.

SpaceX will be trading between 4.7 and 26 times as expensive as the "Magnificent Seven" stocks. And while they may not all be perfect apples-to-apples comparisons, they show just how expensive SpaceX's stock will be.

A good company doesn't always make a good investment. Regardless of how promising a company is, if you're investing while it's trading at a high premium and priced for perfection (which is the case with SpaceX), you can limit your upside and increase the risk of a post-IPO pop sell-off.

I would steer clear of investing in SpaceX at its IPO because of the virtually inevitable volatility and risks. That doesn't mean it won't eventually be a good investment, but I'd give it time to breathe.

In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. If you’d invested $5,000 then, you’d be sitting on $2,703,231 today.*

Now, for the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. It’s a key player in the $1.8 trillion space race, and with the stock recently sitting 20% off its highs, the window to get in early is closing fast.

Continue »

*Stock Advisor returns as of June 9, 2026

Stefon Walters has positions in Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Broadcom, Meta Platforms, Micron Technology, Microsoft, Nvidia, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool has a disclosure policy.

Here Is the Most Jarring Number Ahead of SpaceX's IPO was originally published by The Motley Fool