A Look at AST SpaceMobile (ASTS) Valuation After First Commercial Satellite Deployment and New Industry Partnerships

AST SpaceMobile (ASTS) just made real progress in its mission to build a space-based mobile network by deploying its first five commercial satellites into low Earth orbit. This is not just a technical achievement; it is a signal to investors that the company is shifting from promise to actual execution. The milestone aligns with AST SpaceMobile’s broader plans to launch as many as 60 satellites by early 2026 and highlights the depth of its partnerships with major carriers such as AT&T and Verizon.

This operational leap comes after the stock soared an eye-catching 87% so far this year, even as some investors express concerns about competition from rivals like EchoStar and Starlink. Compared to a year ago, AST SpaceMobile’s share price remains well above where it started, pointing to momentum that has built alongside investor appetite for alternatives to dominant players like SpaceX. While competition remains strong and the company’s revenue is still modest, the market’s recent moves appear to reflect renewed confidence that ASTS could establish a credible position in satellite communications.

After such a strong run, the key question is whether AST SpaceMobile stock is undervalued with more upside to come, or if the market is already factoring in all future growth. What do you think?

Price-to-Book of 12.5x: Is it justified?

AST SpaceMobile is currently trading at a price-to-book ratio of 12.5 times, which places it well above both the US Telecom industry average of 1.5 times and the peer group average of 4.5 times. This elevated multiple suggests the market is expecting significant growth or believes the company’s assets have a higher return potential in the future.

The price-to-book ratio compares a company’s market value to its book value. It represents how much investors are willing to pay for each dollar of net assets. In the telecom sector, where infrastructure and technology investments play a significant role, a high price-to-book can signal optimism about future profitability but may also reflect substantial risk if results do not materialize.

Such a premium valuation could mean that investors are overpricing future growth and earnings potential relative to tangible assets, especially given the company's current unprofitability and low revenue. This substantial gap warrants a closer look at whether the market’s enthusiasm is warranted by the fundamentals.

Result: Fair Value of $40.43 (OVERVALUED)

See our latest analysis for AST SpaceMobile.

However, losses remain wide and revenue is still low. Future gains depend on execution and whether demand translates into sustained, profitable growth.

Find out about the key risks to this AST SpaceMobile narrative.

Another View: What Does the SWS DCF Model Say?

While the earlier valuation method suggests AST SpaceMobile is trading at a steep premium to its assets, our DCF model offers a very different perspective. It indicates the stock could be significantly undervalued. Which approach better captures the real opportunity?

Look into how the SWS DCF model arrives at its fair value.

Stay updated when valuation signals shift by adding AST SpaceMobile to your watchlist or portfolio. Alternatively, explore our screener to discover other companies that fit your criteria.

Build Your Own AST SpaceMobile Narrative

If you see the numbers differently or would rather dig into the details yourself, you can build your own perspective in just a few minutes. Do it your way

A great starting point for your AST SpaceMobile research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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