Virgin Galactic (SPCE), which completed a spaceflight crewed to the edge in July, stole headlines. SPCE has been struggling in an industry that is seeing increasing competition. The company’s share price fell 20% during the month. Given SPCE’s weak fundamentals and high valuation, would it be worth investing in the stock at current levels? Let’s talk about Virgin Galactic Holdings, Inc., a global aerospace company, which focuses on spaceships, and other technology, for researchers and tourists. After Richard Branson, founder of Las Cruces (New Mexico) and five others flew on the SPCE rocket plane to the edge, Las Cruces rose to fame.
However, despite the company’s long-awaited accomplishment, SPCE’s share price has declined 55% over the past six months and 20% over the past month, closing yesterday’s trading session at $15.62.
SPCE trades at an attractive valuation, considering its low growth prospects. The stock’s forward EV/Sales is 822.41x. This is 41655.2% more than the industry average of 1.98x. SPCE’s forward Price/Sales of 1177.56x is 71140% more than the industry average. SPCE’s low profitability could also cause further price falls in the future.
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