Virgin Galactic (SPCE) has been making decent progress with its spaceflights. The company grabbed headlines after completing a manned spaceflight to the edge of space in July. However, the stock has declined 26.5% in price over the past month to close yesterday’s trading session at $24.61. So, is the stock a buy at this price level? Keep reading to find out.Virgin Galactic Holdings, Inc. (NYSE:SPCE) is an integrated aerospace company that is focused on spaceships and related technologies for tourists and researchers in the United States. The Las Cruces, N.Mex.-based company came into the limelight after founder Richard Branson and a crew of five others reached the edge of space aboard SPCE’s rocket plane on July 11. However, despite the company’s long-awaited success, shares of SPCE have slumped 50% in price following the big day to close yesterday’s trading session at $24.61.
However, the stock has gained 54.6% over the past year due to its leading commercial space tourism industry position.
SPCE is currently trading at a frothy valuation considering its growth prospects. In terms of its forward EV/Sales, SPCE is currently trading at 2,697.67x, which is 141,386.6% higher than the 1.91x industry average. In addition, the stock’s 2,985.31 forward Price/Sales multiple is 193,488.7% higher than the 1.54 industry average.