Skip to main content

Market Overview

Is Virgin (SPCE) Stock A Good Buy?

Is Virgin SPCE Stock A Good Buy?

Company Overview

Virgin Galactic (NYSE: SPCE) is a vertically integrated aerospace company, pioneering human spaceflight for private individuals and researchers. They also manufacture advanced air and space vehicles. Using its proprietary and reusable technologies and supported by a distinctive, Virgin-branded customer experience.

Valuation and Growth

SPCE stock is a bad value based on its P/B ratio of (13.8x) compared to the US Aerospace & Defense industry average (3x). The market is pricing this stock as a high-growth company, and analysts agree with forecasted annual earnings growth of 42.8% compared to the industries 18.5%, as well as an average price target of $31.82 per share. Implying a 33.5% increase over the current share price of $23.83. Analysts forecast revenue to grow at 72% per year. The global space launch services market size was valued at $9.88 billion in 2019 and is projected to reach $32.41 billion by 2027, growing at a CAGR of 15.7%from 2020 to 2027 according to allied market research.

Financial Strength 

SPCE stock has a strong financial position with assets of $609MM and liabilities of just $113MM. They use very little debt relative to equity with a debt-to-equity ratio of just 0.07%. Lastly, they have a cash runway of at least a year based on current financials. Meaning they could finance operations for that long without needing outside capital.


SPCE has yet to achieve meaningful revenues to sustain the business. SPCE will not become profitable over the next 3 years. Space flight is expensive meaning high capital needs. They have diluted shareholders over the past year by issuing more shares.


Investing is all about risk and reward. Space travel will be an ever-increasing pursuit for humans. This is one of the few companies that can properly capitalize on this opportunity. SPCE is still early on its journey this can create a great investment opportunity for an aggressive investor. Although the road may be a painful one.

Original Post


Related Articles (SPCE)

View Comments and Join the Discussion!

Posted-In: contributors SPCE Virgin GalacticMarkets Trading Ideas

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at