Aswath Damodaran says SpaceX is priced too high

New York University finance professor Aswath Damodaran says SpaceX is expensive at its planned public market pricing, even though he sees the company as a unique business. Damodaran said his valuation of SpaceX is below the $1.77 trillion figure implied by the company’s target IPO price. He estimated a range of about $1.25 trillion to $1.35 trillion after reviewing the prospectus and comparing the company’s business segments. He said SpaceX’s launch and connectivity operations appear strong, but the artificial intelligence business is the biggest uncertainty because it has weaker margins, tougher competition and higher capital spending. Damodaran also noted that any investment in a Muskled company involves added execution risk and distractions, and he said he prefers to buy based on valuation rather than market momentum.