SpaceX ‘significantly overvalued’ as huge IPO looms; UK construction output slumps – business live
SpaceX is lining up a record-setting IPO at a $1.78tn valuation, while UK construction output has fallen at its fastest pace in six years.
Intelligence analysis by GPT-5.4 Mini
The live business blog centers on SpaceX’s plan for a giant listing, which could be the biggest IPO ever, and on warnings that the company may be priced too richly. It also tracks weaker market trading and fresh signs of strain in UK construction.
SpaceX is trying to sell tiny pieces of itself to the public at a huge price, like putting a very expensive sticker on a race car before the race is even over. Some experts think that sticker price is too high, while the UK’s building industry is also showing signs of slowing down.
Analysis
SpaceX’s planned float
SpaceX has announced plans for an IPO at a valuation of $1.78tn, with the company aiming to raise $75bn and possibly as much as $86bn if underwriters use an additional share option. If completed, that would make it the largest stock market flotation on record, ahead of Saudi Aramco’s 2019 listing.
The scale of the valuation is the main source of debate. Reuters notes that SpaceX posted a net loss of $4.94bn in 2025, even though revenue rose 33% to $18.67bn. That implies investors would be paying more than 90 times annual revenue, a level that depends heavily on very strong future growth.
Morningstar has already warned that the company is “significantly overvalued.” Its discounted cash flow estimate puts SpaceX at about $780bn, well below the planned IPO valuation, and it says investors may have better buying opportunities after the stock starts trading.
Wider market picture
The blog also shows a cautious market backdrop. The FTSE 100 fell after overnight weakness on Wall Street and in Asia-Pacific, with tech valuations under pressure after Broadcom disappointed investors in after-hours trading. UK financials with Asian exposure, including Prudential and Standard Chartered, were among the biggest fallers.
On the domestic data front, UK construction output has dropped at the fastest pace in six years, with builders squeezed by higher energy, fuel and transport costs. That adds another sign that parts of the economy are still under strain even as markets watch for major corporate events like the SpaceX listing.
Key points
- SpaceX plans an IPO at a $1.78tn valuation, which would be the largest stock flotation ever if it goes ahead.
- The company aims to raise $75bn, with the total possibly rising to $86bn if underwriters sell additional shares.
- Reuters cited a 2025 net loss of $4.94bn even as revenue rose 33% to $18.67bn.
- Morningstar said SpaceX is “significantly overvalued” and valued it at about $780bn in a discounted cash flow model.
- The same live blog reports weaker markets and UK construction output falling at its fastest pace in six years.
If SpaceX completes the IPO, it would unlock a large new pool of capital for rockets, launches, and its broader ambitions. A successful listing could also give ordinary investors access to a company that has so far stayed private and hard to buy into.
The biggest risk is that the IPO price proves too rich, especially given the company’s 2025 loss and the valuation gap highlighted by Morningstar. If market sentiment stays weak, investors could be wary of buying in at the opening levels and the stock could struggle after listing.
