RocketLab Stock: My Final Verdict (Buy or Sell) | RKLB Stock Deep Dive Part 6

Parkev Tatevosian, CFA•Jun 20, 2026

Summary

Parkev provides a final analysis of Rocket Lab, focusing on its cash flow and valuation. He notes that while the company had a negative free cash flow of $75 million in the most recent quarter, its $1.5 billion cash reserve provides a substantial 15-quarter runway. Management has been opportunistically raising capital by selling shares during the stock's 300% rally over the past year, which Parkev views as a smart move to lower the cost of capital and increase stability as they reach new milestones.

The financial outlook for Rocket Lab remains positive, with Q2 revenue projected between $225 million and $240 million and gross margins expected to reach 34%. Parkev compares Rocket Lab’s forward price-to-sales ratio of 62 to SpaceX’s estimated ratio of over 90, arguing that Rocket Lab is a more attractive 'pure play' space company without the 'junk' of social media or AI ventures. However, he concludes that the stock is currently 'too rich' and maintains a hold rating, waiting for a more sustainable valuation.

RKLB: Parkev notes that Rocket Lab has a negative free cash flow of $75 million but maintains a very strong cash position of $1.5 billion. He highlights that the company is successfully scaling, with Q2 revenue expected to grow 16% sequentially to a range of $225 million to $240 million. Despite the operational success, Parkev rates the stock a hold because the forward price-to-sales ratio of 62 is too high following a 300% price surge over the last year.

SPACE: Parkev compares Rocket Lab to SpaceX, noting that SpaceX's estimated trailing price-to-sales ratio is around 90 to 95. He expresses concern over SpaceX's valuation due to its inclusion of non-space assets like social media and AI ventures which typically trade at lower multiples. He suggests that Rocket Lab is a 'pure play' space company, making it more attractive than SpaceX's conglomerate structure, though still expensive.

Mentioned Stocks

RKLB

Sentiment: HOLD

Reasoning: Parkev points to the company's strong liquidity and 15-quarter cash runway as major positives, alongside improving gross margins targeted at 34%. However, he argues that the valuation is currently unsustainable after the stock's recent 300% rally, with a forward price-to-sales ratio of 62. He prefers to wait for a potential industry-wide correction or a lower entry point before committing new capital.

Loading chart...

SPACE

Sentiment: HOLD

Reasoning: Parkev notes that SpaceX is trading at a trailing price-to-sales ratio of around 90-95 based on its estimated valuation. He criticizes the inclusion of assets like social media and AI ventures in SpaceX, which he believes should trade at much lower multiples compared to space technology. He suggests that industry valuations are currently unsustainable and likely to decrease, making it a poor time to enter at these levels.

Loading chart...