The Rolls-Royce (LSE: RR) share price would hit £141 if the market applied SpaceX’s current valuation multiple to the FTSE 100 market darling today. That’s not a price target, but it does show the discrepancy between the two global technology-led aerospace companies right now.
There is a chasm between Rolls’s actual £14.13 share price as I write on 8 July and the implied £141.3 at SpaceX levels. So, what’s the real story behind each company’s valuation? And is there really significant potential benefit to owning Rolls-Royce shares today?
The valuation gap in numbers
SpaceX might be expensive, but it’s also got some real wins to substantiate its numbers. With recent large contracted deals announced with Anthrophic and Google through to 2029, analysts estimate 2026 revenues could reach around $38bn (£28.4bn).
Applying that to the current $1.97trn (£1.48trn) market cap gives SpaceX a price-to-sales (P/S) ratio of around 52 times.
If that was applied to Rolls-Royce’s FY2026 consensus revenue of £22.7bn, the implied market cap of £1.18trn works out to £141 per share:
- FY26 consensus revenue: £22.7bn
- Market cap (8 July): £118.1bn
- Rolls-Royce forward P/S ratio: 5.2x
- SpaceX forward P/S ratio: 52x
- Implied market cap at SpaceX multiple: £1.18trn
- Number of shares outstanding: 8.35bn
- Implied share price at SpaceX multiple: £141.3
So, why is there such a huge discrepancy in valuation between these two leading aerospace and defence companies?
Why is there a valuation gap?
Rolls-Royce Holdings is a world technology leader in aircraft engines, defence systems, and power solutions.
The defence and civil aerospace capabilities are top-tier and hard to replicate. Under chief executive Tufan Erginbilgiç since 2023, the turnaround has been real and well-documented.
We are delivering on our proposition to transform Rolls-Royce into a highperforming, competitive, resilient, and growing business.
Tufan Erginbilgiç, Chief Executive, Rolls-Royce – Full Year 2025 Result
SpaceX is a genuine pioneer in markets that Rolls-Royce simply can’t access. Its biggest markets are space, satellite broadband, and now AI infrastructure through its xAI integration. The growth case is real, but the profits aren’t there yet.
The danger in that SpaceX number
SpaceX’s current valuation prices in years of flawless execution.
Morningstar described it as one of the most expensive stocks in its entire coverage universe on a trailing revenue basis. Any surprise miss on growth, revenue, or earnings could lead to a sharp decline.
More immediately, I worry about the expiration date of the insider lockup, when pre-IPO investors will be free to sell. That’s arriving around SpaceX’s first earnings report in August. That spike in supply could be brutal for a stock priced for perfection.
Time to consider buying into Rolls-Royce?
I’m not considering SpaceX right now, but I am actively looking at buying into Rolls-Royce. It’s not without risks — from reduced defence spending, supply chain problems, and frontier markets — but I like the defence sector’s prospects in coming years.
I don’t see any chance of the stock getting near £141.3, but it’s still one for investors to consider. The company’s half-year results are slated for 30 July and I think I’ll be allocating a small amount of my portfolio to it shortly.
Should you invest £5,000 in Rolls-Royce Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls-Royce Plc made the list?
Ken Hall does not hold any positions in the companies mentioned.
