Space Exploration Technologies (NASDAQ: SPCX) (SpaceX) debuted on the stock market on June 12 as the largest initial public offering (IPO) in history, and after its one week, it was the world’s sixth-most-valuable company, with a market cap of just over $2.43 trillion.
Despite the hype surrounding SpaceX and its initial pop, there’s one reason I wouldn’t touch the stock right now: it’s too expensive and therefore too susceptible to a sudden pullback
A company’s price-to-sales (P/S) ratio tells you how much you’re paying for every dollar of its revenue. The higher the P/S ratio, the more expensive a stock is considered. Using SpaceX’s June 18 market cap and its $18.67 billion in 2025 revenue, its P/S ratio was be 130.2, which is extremely expensive.
For perspective on how expensive that is: It’s 36.5 times higher than Amazon, 6.4 times higher than Nvidia, and 9 times higher than Elon Musk’s other company, Tesla. Being expensive doesn’t always mean being a bad investment. Sometimes, premium companies command a premium price.