EV/Sales Template

Rocket Lab (RKLB) Valuation

Build year-by-year target prices using forward revenue and EV/Sales assumptions. Net cash and shares are applied across all years to keep the model simple.

Leverage Futures Independent Research

Rocket Lab: Execution-Led Growth Story with Valuation Compression Risk

Our view centers on launch cadence, government demand durability, and scaling of the Space Systems mix. RKLB screens as a high-duration asset where multiple normalization can dominate returns if growth delivery slips.

Coverage

NASDAQ: RKLB

Report Type

Growth Multiple Note

Primary Lens

Revenue Scale vs EV/S Compression

Base Horizon

2026E-2030E

Core Thesis

  • Execution on launch cadence and mission mix is the central value driver.
  • Space Systems should become a margin stabilizer as scale improves.
  • Revenue growth must outrun expected EV/S multiple normalization.

Catalysts

  • Contract wins, backlog quality, and conversion pace into recognized revenue.
  • Neutron development milestones and timeline visibility.
  • Gross margin progression by business line.

Primary Risks

  • Delays or reliability events impacting cadence credibility.
  • Government procurement timing and budget volatility.
  • Sharp multiple contraction without commensurate profitability inflection.

Valuation Approach

  • Year-by-year EV/Sales framework anchored to forward revenue paths.
  • Net cash and share count bridge from enterprise value to implied price.
  • Scenario table to benchmark current premium vs historical/industry levels.

For information purposes only, not investment advice.

Rocket Lab Long-Form Company Wiki

A detailed wiki-style memo focused on launch execution, space-systems scaling, and how growth durability interacts with EV/S multiple normalization.

1. Investment Frame

Rocket Lab is a high-duration growth equity where execution consistency matters as much as absolute growth. The core valuation debate is whether multi-year revenue expansion can offset expected contraction from very elevated EV/S multiples.

2. Business Overview

The company operates two key engines: launch services and space systems/components. The mix between these engines influences margin quality, cash-flow stability, and investor perception of business durability.

  • Launch: cadence, reliability, and customer concentration are central.
  • Space systems: recurring contracts and integration capability support scale.

3. Launch Services

Launch valuation is less about headline mission count and more about conversion quality: mission mix, contract economics, and schedule reliability. Any reliability event can temporarily reset market confidence regardless of backlog size.

4. Space Systems

Space Systems can reduce cyclicality by adding broader demand exposure and potentially smoother contract visibility. It is a key candidate to become the margin anchor while launch remains execution intensive.

5. Neutron Program

Neutron is a strategic optionality layer. It can expand addressable market and improve long-term positioning, but development schedule and capital requirements add uncertainty. Roadmap credibility is therefore a major share-price sensitivity variable.

6. Profitability Path

For this coverage, profitability is evaluated through operating leverage by segment rather than short-term consolidated margin fluctuations. Sustainable re-rating typically needs a visible path from growth to cash generation.

7. Capital and Liquidity

Liquidity profile and funding flexibility are important because growth programs can absorb cash before returns are proven. Balance-sheet strength affects strategic freedom during development delays or macro demand shocks.

8. Scenario Framework

Scenario Growth Trajectory Execution Quality Multiple Behavior
Bull Strong launch and systems growth with backlog quality. High schedule reliability and program delivery. Gradual compression offset by growth quality.
Base Healthy but uneven multi-year scaling. Manageable delays without major reliability shock. Normalization toward historical growth multiples.
Bear Growth misses due to cadence or contract timing. Execution interruptions reduce confidence. Fast de-rating before profitability inflection.

9. Monitoring Checklist

  • Launch cadence and reliability versus annual plan.
  • Backlog composition and conversion velocity.
  • Space systems margin progression and contract mix quality.
  • Neutron milestone timing versus communicated roadmap.

10. Risks and Notes

Key risks include execution slippage, government spending variability, and valuation compression outpacing growth realization. This wiki is designed as a long-form context layer that should be read with the interactive valuation appendix below.

Document intent: independent research context for model users. Not investment advice.

Model Appendix

Interactive EV/Sales Valuation

Set forward revenue and EV/S assumptions by year to test implied RKLB target prices.

Core Assumptions

All values are in USD millions unless noted. Use negative numbers for net debt.

Year-by-Year Targets

Enter revenue and EV/Sales for each year to get implied target prices.

Year Revenue (USD m) EV/Sales (x) Enterprise Value Equity Value Implied Price
2025 TTM $0m $0m $0.00
2026E $0m $0m $0.00
2027E $0m $0m $0.00
2028E $0m $0m $0.00
2029E $0m $0m $0.00
2030E $0m $0m $0.00
TTM reference: Revenue ~ $554.5M (alt ~ $599M), EV ~ $41-43B, EV/S ~ 70-80x, P/S ~ 49-76x, stock price ~ $80-90, net income negative, EV/EBITDA negative.
Formula: EV = Revenue × EV/Sales. Equity = EV + Net Cash. Price = Equity / Shares.

EV/S Scenario Snapshot (TTM)

Use TTM revenue with scenario multiples to compare implied prices.

Scenario EV/Sales (x) Enterprise Value Equity Value Implied Price
Current (64-78x range) $0m $0m $0.00
3Y Average $0m $0m $0.00
5Y Average $0m $0m $0.00
Industry Avg $0m $0m $0.00
Scenario outputs reuse Net Cash and Shares assumptions above.

AI CHATBOT

Rocket Lab AI Assistant

Ask about RKLB valuation logic, EV/S assumptions, and scenario risk.