SpaceX prepares for its anticipated public offering this week with a target valuation of $1.77 trillion, but NYU's Aswath Damodaran questions whether the rocket company deserves such a high price tag. The renowned professor, known as the 'dean of valuation,' argues investors should temper their expectations given the company's uncertain AI prospects. Damodaran estimates SpaceX's actual equity value closer to $1.3 trillion, creating a significant gap between market enthusiasm and fundamental reality.

The valuation debate centers on whether SpaceX can deliver on its ambitious AI ambitions alongside its core space exploration business.