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Source: company report <\/p>\nWe\u2019ve now (17 June) had three full days of trading in SpaceX \u2014 Space Exploration Technologies (NASDAQ:SPCX) \u2014 shares. And given that the stock\u2019s changing hands for 49.5% more than the IPO price, valuing the company at a cool $2.66trn, I think it\u2019s fair to say that the listing\u2019s been a huge success.<\/p>\n
But what does this tell us about stock market valuations? Let\u2019s see.<\/p>\n
Reaching new heights <\/p>\n
The first thing to note is that the valuation rule book (if there were such a thing) doesn\u2019t apply here!<\/p>\n
Why?<\/p>\n
Well, a look at SpaceX\u2019s 2025 numbers reveals that it isn\u2019t profitable, and that it\u2019s valued at an astonishing 142 times revenue.<\/p>\n
Apply this to, for example, Rolls-Royce Holdings (LSE:RR.) and the UK company would be worth 24 times more than it is today!<\/p>\n
Source: company report <\/p>\n
It\u2019s a similar story when it comes to their balance sheets.<\/p>\n
At 31 March 2026, SpaceX had an accounting value of $34.5bn, giving it a price-to-book ratio of 77. If it was treated the same, Rolls-Royce\u2019s shares would be changing hands for 82% more (\u00a325.37).<\/p>\n
But I don\u2019t think we should be surprised by this. Elon Musk\u2019s businesses are treated differently to all others. Just look at Tesla. Today, it\u2019s valued at 364 times historic earnings. Rolls-Royce\u2019s multiple is 47.<\/p>\n
What does this tell us? <\/p>\n
Of course, we are comparing companies in different sectors here. Also, valuations should really be an assessment of future potential. Judgement is, therefore, required.<\/p>\n
And in my opinion, Rolls-Royce is a stock to consider for the long-term because of its small modular reactor (SMR) programme and its intention to return to the narrowbody aircraft market.<\/p>\n
These are potentially huge opportunites that could transform the scale of its operations. Data centres are also helping its existing power systems business grow rapidly.<\/p>\n
However, as with any investment, there are risks. Its SMRs might not be commercially viable. Also, its price-to-earnings ratio implies (by historical standards) that its shares are expensive. A sharp correction can\u2019t be ruled out if the group\u2019s growth trajectory stalls.<\/p>\n
For now though, all of its business units are doing well. Indeed, analysts are expecting its earnings per share to rise by 75% over the next three years:<\/p>\n
2025 (actual) \u2013 29.6p<\/p>\n
2026 \u2013 37.8p<\/p>\n
2027 \u2013 44.1p<\/p>\n
2028 \u2013 51.8p<\/p>\n
On the other hand\u2026 <\/p>\n
But as much as I like Rolls-Royce, I have to admit that it doesn\u2019t have the \u201clargest actionable total addressable market in human history\u201d, as claimed by SpaceX. Nor does it have Elon Musk as a shareholder.<\/p>\n
Sector<\/p>\n
Total addressable market ($bn)<\/p>\n
AI enterprise applications<\/p>\n
22,700<\/p>\n
AI infrastructure<\/p>\n
2,400<\/p>\n
Starlink broadband<\/p>\n
870<\/p>\n
Consumer subscriptions<\/p>\n
760<\/p>\n
Starlink mobile<\/p>\n
740<\/p>\n
Digital advertising<\/p>\n
600<\/p>\n
Space-enabled solutions<\/p>\n
370<\/p>\n
Total<\/p>\n
28,440<\/p>\n
However, at the moment, only Starlink is profitable. During Q1 2026, it added 1.4m new subscribers. But its average revenue per user fell significantly, which suggests it\u2019s facing some stiff competition.<\/p>\n
My view <\/p>\n
Given SpaceX\u2019s astronomical valuation and heavy losses \u2014 as well as my risk-averse nature \u2014 it\u2019s not the sort of company I usually invest in. But I have.<\/p>\n
In my defence, I only have a small shareholding. If everything goes horribly wrong, it won\u2019t affect me too much. On the other hand, if SpaceX can live up to all the hype, who knows where it will be by the end of the decade?<\/p>\n
For those who are comfortable investing in a company with a less than 10% chance of success (Musk\u2019s own assessment), I think it could be one to consider.<\/p>\n
Should you invest \u00a35,000 in Rolls-Royce Plc right now? <\/p>\n
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.<\/p>\n
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls-Royce Plc made the list?<\/p>\n
See The Six Stocks<\/p>\n
James Beard owns shares in Rolls-Royce Holdings plc and Space Exploration Technologies Corporation.<\/p>\n
The post If Rolls-Royce shares were valued the same as SpaceX stock, here\u2019s how much one would be worth\u2026<\/a> appeared first on The Twelfth Magpie<\/a>.<\/p>\n More reading<\/p>\n Motley Fool UK 2026<\/p>\n","protected":false},"excerpt":{"rendered":"We\u2019ve now (17 June) had three full days of trading in SpaceX \u2014 Space Exploration Technologies (NASDAQ:SPCX) \u2014…\n","protected":false},"author":2,"featured_media":65019,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20731],"tags":[30757,30756,1361,1238,20767,5486,30758,1828],"class_list":["post-65018","post","type-post","status-publish","format-standard","has-post-thumbnail","category-rolls-royce","tag-changing-hands","tag-company-report","tag-elon-musk","tag-rolls-royce","tag-rolls-royce-plc","tag-spacex","tag-spacex-stock","tag-stock-market"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/116766183908273762","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/65018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=65018"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/65018\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/65019"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=65018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=65018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=65018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}