The SpaceX IPO has investors asking a reasonable question: at a valuation somewhere between $1 trillion and $2 trillion, is the hype real, or is the market getting ahead of itself? Rob Spivey and Joel Litman of Altimetry Research say the answer is both—and that for most investors, there are cleaner opportunities sitting right next to the SpaceX story.
Altimetry applies uniform accounting to strip out the distortions in standard GAAP reporting. When Spivey and Litman ran that lens over SpaceX (NASDAQ: SPCX)'s S-1, what they found was a profitable business with three distinct segments, each worth valuing on its own terms.
