Pre-IPO Anduril Stock Climbs 50% in 5 Months

Time flies when you’re having fun, building drones, and waiting to hold an IPO! Barely 18 months ago, I took a look at “unicorn” company Anduril Industries, its $1 billion in 2024 sales, and its $30 private market valuation — and decided the stock was probably overvalued at 30 times sales. (Most traditional defense companies are fairly valued closer to 1 times sales.)

But somebody disagreed.

Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »

Actually, a lot of somebodies.

In a funding round held in May 2026, private market investors valued the defense technology upstart at twice the price at which I had dismissed it just one year earlier — $61 billion. And five months later, we just learned that Anduril’s valuation has jumped again, by nearly 50%.

Anduril logo.
Image source: Anduril.

CNBC reports on Anduril

As CNBC reported earlier this week, Anduril has filed notice that it will hold a “tender offer” to permit some of its employees to cash in their stock options and stock holdings in the company. According to the news agency, the new private market value of Anduril stock will be “roughly $90 billion.”

Which is to say, 48% more than Anduril was worth just five months ago, and up 3 times from its valuation in June 2025.

But is that valuation justified?

How to value Anduril stock (just in case it IPOs)

Anduril CEO Palmer Luckey is on record saying it’s “important” that his company hold an initial public offering. When that happens, the question of valuation will become urgent for investors — at least those who don’t want to lose money on the IPO. With that in mind, here’s how I look at Anduril’s valuation:

Thirty times sales seemed obviously overvalued to me last year. Now, the good news is that Anduril isn’t generating $1 billion in revenue a year anymore. According to a March Reuters report, the company is on track to generate $4.3 billion in sales this year. So a $90 billion valuation implies the stock is selling for “only” about 21 times sales.

(Hint: Even that is too much.)

Worse, Anduril isn’t actually making money on those sales. Reuters estimates Anduril will lose $1 billion this year, and other sources suggest the company won’t turn its first profit before 2030.

Oh, and all this was before Anduril promised to spend $3.7 billion building an incredibly capital-intensive shipyard to produce submarine parts for the U.S. Navy.

Make no mistake: I’m a fan of Anduril as a company, and I love the idea that it is producing military hardware at affordable prices and shaking up the Pentagon’s procurement process to encourage America’s military to spend its money more wisely.

Much as I like the company, however, I’m afraid that as an IPO and as a stock, Anduril is going to end up looking vastly overpriced.

Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger

Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005.

But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout, a massive technology build-out that Google’s CEO says could be more profound than fire or electricity.

While everyone watches the chip designers, one “backbone” company provides the critical technology that Nvidia and AMD literally cannot function without. We’ve detailed this under-the-radar player in our new AI Playbook.

Continue »

The Motley Fool has a disclosure policy.

Pre-IPO Anduril Stock Climbs 50% in 5 Months was originally published by The Motley Fool

Source link

Visited 1 times, 1 visit(s) today

Related Article

Thinking Nvidia Stock Could Hit $10 Trillion? Here’s 1 Reason I’d Be Cautious

Could Nvidia (NASDAQ: NVDA) become a $10 trillion company? That’s a reasonable question to ask. Nvidia sits at the center of the artificial intelligence boom, supplying the chips and systems that power AI data centers. As a result, its revenue and profits have grown at extraordinary rates as companies race to build AI infrastructure. Missed

Europe’s Protests Are Rattling Bond Markets. Are Banks Next?

A protesting student feeds a burnt barrier during a blockading action outside the secondary school Le Corbusier, in Aubervilliers, northern Paris. (Photo by LOU BENOIST / AFP via Getty Images) As my husband, a long-time media and technology expert, always remind me ‘if it bleeds, it leads.’ We have to be careful and go beyond

Cleveland-Cliffs Inc. Q3 2026 Earnings Call Summary

Cleveland-Cliffs Inc. Q3 2026 Earnings Call Summary – Moby Strategic Performance and Market Dynamics Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we’ll show you why it’s our #1 pick. Tap here. Management attributes the Q3 EBITDA doubling to a ‘rational’ trade environment

USA Rare Earth: Millionaire Maker or Market Hype? The Honest Truth.

Ever heard of neodymium? No? How about praseodymium? Or terbium, or dysprosium? If you have heard of these — they’re the “core four” rare-earth elements, by the way — there’s a good chance you’ve come across rare-earth stocks like USA Rare Earth (NASDAQ: USAR). If you’re not familiar, just imagine a world where smartphones, laptops,

U.S. Bancorp’s Dividend Is Doing Its Job. Can the Stock Do Its Part?

U.S. Bancorp (NYSE:USB) is becoming increasingly attractive to income-focused investors as its lending activity grows and fee revenue picks up. The key question is whether this earnings growth can support the current stock price, especially as government bonds provide a compelling alternative for those seeking steady income. The search for reliable payouts extends beyond the

Prediction: One Major Catalyst Could Send Alphabet Stock to New Highs

Quick Read Alphabet (GOOG) trades at a trailing P/E of just 15 with a $514B Cloud backlog and 82% Cloud revenue growth, driving a $437 price target with 25% upside. Microsoft (MSFT) trades at twice Alphabet’s earnings multiple despite Azure growing at roughly half Google Cloud’s pace, making GOOG look undervalued versus peers like Meta

Why Micron Stock Bounced on Monday

Last week was miserable for Micron (NASDAQ:MU) stock, with the maker of DRAM and NAND flash memory chips losing nearly 15% on worries that Chinese DRAM company ChangXin Memory Technologies was bringing to market “4F square” technology to increase DRAM storage density — and begin stealing market share from Micron. Monday morning, things are looking

Prediction: Amazon’s Next Chapter Could Be Its Most Important One Yet

Quick Read AMZN earns a BUY rating with a $332.67 price target, representing 30% upside, anchored by AWS growing 37% at its fastest pace in 18 quarters. Amazon trades at 24x forward earnings, cheaper than MSFT at 25x, with its 13.7% operating margin offering the most room to expand among peers. Amazon’s free cash flow

Gartner’s (IT) Medium-Term Growth Trajectory Remains Intact

Diamond Hill Capital, a First Eagle Investment Management company, issued its Q3 2026 investor letter for its “Large Cap Strategy”. The letter can be downloaded here. The Strategy returned 3.18% (net of fees) in the quarter, outperforming the 2.61% return of the Russell 1000 Value Index. Key positive contributors included stock selection in information technology, an underweight

I’ve Covered Netflix for 24 Years. Here’s Whether the Stock Is Overvalued Right Now.

I’m not one to typically celebrate investing anniversaries, but this month marks 24 years since I became a Netflix (NASDAQ: NFLX) shareholder. It’s been largely ups along the way, but lately there’s been a hard road down. Shares of the company behind the world’s leading premium streaming video service have plummeted more than 40% over

Is UnitedHealth Group Stock a Buy After Another Solid Quarter?

The past few years have been challenging ones for health insurance giant UnitedHealth Group (NYSE:UNH). Rising costs have been weighing on its results, and its five-year returns are in the red, with the stock declining by more than 5% during that stretch. That’s unusual for a stock that historically has generated terrific returns for investors.

1 Large-Cap Stock to Research Further and 2 We Avoid

1 Large-Cap Stock to Research Further and 2 We Avoid Large-cap stocks usually command their industries because they have the scale to drive market trends. The flip side though is that their sheer size can limit growth as expanding further becomes an increasingly challenging task. This is precisely where StockStory comes in – our job

Prediction: This Will Be SpaceX’s Stock Price By the End of 2027

In June, Elon Musk’s space industrial giant, SpaceX (NASDAQ: SPCX), broke records with an initial public offering (IPO) that valued it at $1.77 trillion. This was the largest corporate debut in history, and it netted SpaceX $75 billion in capital that will be used to accelerate its burgeoning artificial intelligence (AI) and satellite internet businesses.

UK's hard-right Reform party hit by fresh scandal as racist views caught on camera

European stocks open in the red as French businesses count the cost of the riots

Stocks across Europe fell at the start of trading on Monday as France reeled from one of its most violent weekends in years, with shopkeepers and CEOs alike tallying the damage and accusing the authorities of leaving them exposed. ADVERTISEMENT ADVERTISEMENT The Euro Stoxx 50 only traded 0.1% lower but the broader pan-European Stoxx 600

Earnings To Watch: Halliburton (HAL) Reports Q3 Results Tomorrow

Earnings To Watch: Halliburton (HAL) Reports Q3 Results Tomorrow Oilfield services company Halliburton (NYSE:HAL) will be announcing earnings results this Tuesday before market open. Here’s what you need to know. Halliburton beat analysts’ revenue expectations last quarter, reporting revenues of $5.71 billion, up 3.7% year on year. It was a very strong quarter for the

RKLB Stock Suffers Worst Week Ever: AST SpaceMobile Partner Challenges Iridium Deal — Claims Rival Uses FCC To Block Competitors

AST SpaceMobile partner Ligado urged the FCC to scrutinize Rocket Lab’s proposed $8 billion Iridium acquisition. Ligado cited SpaceX’s allegation that Iridium filed more than 50 petitions to deny over eight months. Neutron’s debut has slipped into 2027, while the Iridium acquisition remains targeted for a mid-2027 close. Shares of Rocket Lab (RKLB) plunged over

Northrop Grumman (NOC) Q3 Earnings: What To Expect

Northrop Grumman (NOC) Q3 Earnings: What To Expect Security and aerospace company Northrop Grumman (NYSE:NOC) will be reporting results this Tuesday morning. Here’s what to expect. Northrop Grumman beat analysts’ revenue expectations last quarter, reporting revenues of $10.88 billion, up 5.1% year on year. It was a very strong quarter for the company, with full-year

ASTS Stock Jumps Overnight: Boost Mobile Founder Turns Buyer — Floats Potential Telecom Takeover For SpaceX Rival

Boost Mobile founder and MobileX CEO Peter Adderton said he is a buyer of AST SpaceMobile around $40, while acknowledging shares could fall further. His thesis centers on carriers avoiding dependence on a satellite provider that could become their biggest competitor. Adderton, however, retains concerns about AST SpaceMobile’s tech and standalone prospects. Boost Mobile founder

0
Would love your thoughts, please comment.x
()
x