By Kashmira Konduparty
Investment research firm Morningstar had valued SpaceX at approximately $780 billion, far below the valuation the company is reportedly targeting as it prepares for what could become the largest initial public offering (IPO) in history, according to CNBC.
The assessment comes as Elon Musk’s rocket and satellite company moves closer to a Nasdaq debut. SpaceX is seeking a valuation of about $1.75 trillion and plans to raise roughly $75 billion through its IPO, according to media reports. If successful, the offering would surpass previous records for funds raised in a public listing.
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Morningstar’s valuation is based on a discounted cash flow analysis that places greater emphasis on the company’s current businesses and assigns more conservative expectations to us future artificial intelligence ambitions. The research firm said investor enthusiasm has pushed private-market valuation significantly above what it considers the company’s fair value.
A major point of disagreement centers on SpaceX’s AI operations, which include xAI and the Grok chatbot. Morningstar expressed skepticism about the long-term economics of the business, citing intense competition from AI companies such as OpenAI and Anthropic. The firm also questioned the viability of some of the company’s longer-term plans, including proposals involving orbital computing infrastructure and space-based data centers.
Despite its concerns about valuation, Morningstar acknowledged that SpaceX could experience strong demand after listing. The company’s relatively small public float, combined with backing from major Wall Street banks, could support its stock price in the early stages of trading. SpaceX is expected to trade on the Nasdaq under the ticker symbol SPCX.
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SpaceX’s largest revenue-generating business remains Starlink, its satellite internet division, which has become a key driver of growth in recent years. However, Morningstar noted that Starlink faces technological and operational challenges as it expands globally and competes in a rapidly evolving communications market.
The company was most recently valued at about $1.53 trillion in private-market transactions, meaning Morningstar’s estimate is roughly half of both that figure and the valuation sought in the IPO.
The IPO roadshow is expected to begin this week ahead of a planned Nasdaq debut in mid-June. Investors will be closely watching whether public markets support SpaceX’s ambitious valuation target or align more closely with Morningstar’s substantially lower estimate.