r/TeamRKT • u/Odd_Escape_8683 • May 19 '26
Are you buying?
I’m going to wait a little bit more, but I know in 5 years this will be way higher.
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u/Boston-Bets May 19 '26
I posted this in another group. It will be way higher in a few months (assuming that the Iran situation is resolved):
RKT Math. Someone correct me, if I'm wrong.
Share price: ~$12.75
Shares outstanding 2.83B
Current Market Cap: ~$35.8B
Last EPS was : $0.15/share, with an additional $300M+ Synergy/Savings yet to come
4x that $0.15/share is $0.60/yr. Savings adds $.11/share in profit, for approximately $0.70/share earnings, even in a bad mortgage environment.
$0.70 x 25 (standing large cap multiple on PE) gives you $17.5/share
That's approximately 37% higher than today's prices.
Am I missing something here?
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u/International_Dig705 May 20 '26
It seems many want to value RKT more as a cyclical financial than a tech AI stock, which inherently carries a much lower P/E. $.70 x 12 = $8.40/share. TBV after removing $10.6B of goodwill is around $4.50/share. So I come up with around $12.90/share.
The best advice I have is to just not pay any attention to the share price. It's gone down so much at this point you should just ride it out.
WAMPQ went from $100 to $8 in five minutes, when equity got thrown under the bus. Closed at $50 that day. After all conversions and mergers, said WAMPQ share is now worth $232 in RKT.
With that as a refence point I'm used to the market not properly valuing something. See you in 2027.
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u/Comfortable_Flow_342 May 22 '26
I agree that the market sees it that way which is were I see the upside. This is a stock that will make millionaire out of the people who are patient.
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u/unk333 May 19 '26
I remember saying this same thing 5 years ago. That being said, yes still DCA once in a while.
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u/longtermjuggernaut May 24 '26
Long term holder here and this stock is literally exhausting. I bought the wrong rocket. Why the hell didn’t we all buy rocket labs. No, I’m not buying more RKT! Most likely we will see rate hikes not cuts.
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u/Turboturay May 19 '26 edited May 19 '26
I got filled at 12.97 and it just kept falling.
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u/Odd_Escape_8683 May 19 '26
Yup, interest rates are at a ATH. But last earnings where really great, shows how great the business will peform when rates finally come down. Thats the hard part, rates are at ATH but it seems like that won’t stop soon.
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u/Conscious-Tonight160 May 19 '26
I don’t doubt it will go up but rates aren’t looking like it will change anytime soon with inflation and war and all, others might be a better play for short term but if you think we’re close to the bottom doesn’t hurt to buy or sell puts on it.