thesis - as most of its business sits between telecommunications (satellite internet) and government-tied launch missions, it shares the same moat and exposure as Verizon and At&t which also provide government with full service line of high tech service
Given this proximity to business structure and substance of its service, it needs to be priced accordingly, i.e. in the range of 8-12 of P/E or 1-2 P/S. It also shares the pattern of upfront capex and debt obligation which makes it even more convincing.
current valuation implies breakthrough technology changing how people live and work worldwide. This is Anthropic, Google, OpenAi moat, not Spacex (groq included)
The taxonomy of telecom government services:
Core Network & Data Transport Services (MPLS, Ethernet, Optical Wavelength, Dark Fiber, Dedicated IP)
Wireless, Mobility, and Tactical Public Safety (FirstNet, Frontline, 5G/LTE Fixed Wireless, Tactical SATCOM)
Managed, Virtualized, & Cloud Infrastructure (Managed Network Services, SD-WAN, Network Function Virtualization, Edge Computing/MEC)
Federal Cybersecurity & Zero Trust Architecture (TIC 3.0 Compliance, Managed SOC/DDoS Mitigation, Identity & Access Management)
Unified Communications & Constituent Engagement (VoIP/UCaaS, Cloud Contact Centers/CCaaS)