- SpaceX is likened to a cinematic, superhero-style futuristic company by Damodaran
- The company offers low-cost satellite launches and global broadband services
- SpaceX’s valuation hit $1.3 trillion despite $20 billion in revenue, seen as overvalued
Aswath Damodaran, professor of finance at NYU Stern School of Business, has described SpaceX as a company built for the cinematic version of the future, the kind that would belong in a superhero film rather than a software portfolio, even as he flagged its price as running well ahead of its numbers.
"If you are creating a futuristic company in a movie, think Avengers, right? Stark Industries. You would create a company like SpaceX," Damodaran said in an exclusive interview to NDTV Profit. Unlike most of the companies clubbed under the technology label, he said, SpaceX builds rockets that put satellites into orbit at a fraction of the cost of any rival, and is now delivering broadband to parts of the world, including Venezuela, that have never had it.
SpaceX Valuation Has 'Outrun The Story'
Damodaran was direct in separating the quality of the business from the price tag attached to it. "I have attached a valuation of 1.3 trillion for a company with 20 billion in revenues. That requires a lot of story, a lot of potential, a lot of stuff to come true," he said. His verdict: a great company, but not, at that price, a great investment.
His scepticism sits alongside a broader pattern of valuation fears that have surrounded the company through its run-up to listing. SpaceX went public on the Nasdaq on June 12, pricing shares at $135 each in the largest IPO in history, a debut that briefly pushed its market value past $2 trillion before paring back. The valuation slid by $400 billion in a single session in June as rising US bond yields and concerns over AI spending triggered a wider sell-off in technology stocks.
ALSO READ: 'One in Two White-Collar Jobs At Risk': Aswath Damodaran On The Dark Side Of AI Boom
Wall Street has flagged the same tension and the company's own numbers have done little to settle the debate. SpaceX's IPO filing showed a $4.9 billion loss in 2025 on revenue of $18.7 billion.
Analyst Steve Silver of Investing.com noted that the company "is not yet consistently profitable", pointing to an operating model that combines elements of mature infrastructure with venture-style growth bets. Even Musk has acknowledged the stakes attached to the company's newer ventures, having warned of a "genuine risk of bankruptcy" if Starship fails to sustain a high flight cadence.
Musk Not A Multiplier
"Musk has become a divisive figure," Damodaran said, pushing back on the idea that the billionaire's persona is driving the valuation higher. He said as many investors refuse to buy SpaceX because of Musk as those buying it for that reason. The net effect on the stock, he argued, is closer to neutral than the popular narrative suggests.
His closing message to investors was one of separation: SpaceX, in his view, is an exceptional business that only Musk could have built, but exceptional businesses and exceptional investments are not always the same thing. Whether the price catches up with the company, he said, remains to be seen.
ALSO READ: SpaceX IPO And The Sci-Fi Vision Of Elon Musk's Multiplanetary Future
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
