A Look at AST SpaceMobile’s Valuation Following Landmark Verizon Direct-to-Device Partnership

AST SpaceMobile’s new partnership with Verizon is set to deliver direct satellite-to-device cellular connectivity to customers across the United States in 2026. This deal leverages Verizon’s established network and exclusive 850 MHz spectrum.

See our latest analysis for AST SpaceMobile.

AST SpaceMobile's share price momentum has been extraordinary, fueled by high-profile deals like its new Verizon partnership and a recent equity offering. Even with a brief 5.5% pullback after announcing the share sale, the stock boasts a 111.85% one-month share price return. This brings its year-to-date rally to an eye-catching 279.07%. Over the past three years, total shareholder return has soared by more than 1,000%, signaling growing enthusiasm for the company's growth story amid ongoing industry competition and execution risks.

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With shares surging after the Verizon deal and analysts split on valuation, the question now is whether AST SpaceMobile remains undervalued given its market potential, or if investors have already priced in years of future growth.

Price-to-Book Ratio of 25.7x: Is it justified?

AST SpaceMobile currently trades at a steep price-to-book ratio of 25.7x, a level far above sector norms and peer averages. At its last close of $82.03, investors are paying a hefty premium for the company’s net assets compared to the broader market.

The price-to-book ratio compares a company's market value to its book value. This helps investors judge if shares are over or undervalued relative to what the business owns. For capital-intensive sectors like telecom, this metric is particularly telling since asset values can underpin future growth or risk.

With a peer average price-to-book of 4.7x and a US Telecom industry average of just 1.4x, AST SpaceMobile stands out as significantly more expensive based on this multiple. There is also insufficient data to determine whether its current ratio is justified by fundamental factors, such as growth prospects or asset quality. This leaves the high valuation open for interpretation.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book Ratio of 25.7x (OVERVALUED)

However, persistent net losses and a share price that exceeds most analyst targets suggest AST SpaceMobile faces meaningful downside risk if expectations are not met.

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

Another View: Discounted Cash Flow Model Suggests Undervaluation

While the price-to-book ratio paints AST SpaceMobile as overvalued, our DCF model offers a surprising twist. The SWS DCF model estimates fair value at $199.82, which is 58.9% above the current share price. This sharp contrast highlights how different models can give clashing signals depending on which factors you trust most. Could long-term growth unlock hidden value, or are these forecasts too optimistic?

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

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out AST SpaceMobile for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Build Your Own AST SpaceMobile Narrative

If you see things differently or want to dive deeper into the numbers yourself, it’s quick and easy to build your own investment thesis. Do it your way

A great starting point for your AST SpaceMobile research is our analysis highlighting 2 key rewards and 4 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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