According to foreign media, Ron Baron, CEO of Baron Capital, recently referring to the company ' s investment in SpaceX, said that as the space company ' s valuation continued to rise, the associated holdout could yield hundreds of billions of dollars in returns in the future. The core of the report is not new financing or trading arrangements, but the long-term investor publicly re-emphasizes his judgement about SpaceX growth space.

Long-term hold is still core.

Ron Baron has been one of the public supporters of SpaceX. According to foreign media combing, Baron Capital has for many years continuously configured SpaceX as one of the most important unlisted technological assets. This statement perpetuates his long-standing position that short-term valuation fluctuations are not the primary basis for judgement, but rather a bet on the future expansion of the company ' s business.

His judgement was that the cumulative proceeds of Baron Capital on the project could be significant if the SpaceX subsequent valuation continued. The report quotes that the returns are expected to reach the “hundreds of billion dollars” level.

Valuation expected from two operations

Foreign media mentioned that the market expected a high valuation of SpaceX, mainly from two business lines.

  • One is the continued commercialization of rocket-launching operations.
  • Second is the prospect of the expansion of Starlink satellite Internet operations.
  • These two components are seen as key sources to sustain long-term corporate income growth

Of these, Starlink is often considered to be a much larger valuation space. This is because the business is geared towards a wider business, government and consumer market, and income models are closer to sustainable subscription services. In contrast, while the launch operations are more technical, market capacity and tempo are usually more affected by the project cycle.

The view reflects more of the first level of market sentiment.

The report is essentially a point of view, focusing on how prominent investors see SpaceX ' s long-term value rather than on the company ' s disclosure of new business data. As SpaceX remains unlisted, external markets are generally more dependent on financing transactions, secondary share transfers and public statements by institutional investors to observe changes in its valuation.

As a result, such judgements better reflect the current level of market-pricing sentiment towards head space and satellite Internet assets. Ron Baron ' s statement suggests that SpaceX is still considered to be one of the few non-listed companies with super-large return potential in the eyes of some long-term capital.

Additional information:The market discussion of its valuation could be further warming in the event of subsequent new financing, repurchase of employee shares or disclosure of business data.