Eutelsat - a European Starlink competitor
So due to "geopolitical tensions" and concerns over reliance on Elon's Starlink for military communications, European authorities are exploring alternatives. Eutelsat, through its OneWeb satellite constellation, is in discussions with the European Union to enhance internet services in Ukraine. This initiative aims to bolster Europe's autonomy in space-based connectivity and reduce dependency on non-European providers.
Take a look at this comparison and tell me, am I right in thinking that Eutelsat might be undervalued given the shift in the EU?
It takes 20 years to build a reputation and five minutes to ruin it - Warren Buffett
| Factor | Eutelsat (Including OneWeb LEO) | Starlink |
|---|---|---|
| Satellite Constellation | ~40 GEO (geostationary Earth orbit) satellites; LEO (low Earth orbit) constellation (~648 satellites) | >4,000 LEO satellites (expanding rapidly) |
| Orbit & Latency | GEO: Higher latency; OneWeb LEO: Lower latency for broadband services | LEO: Low latency, high throughput |
| Service Focus | Broadcasting, data & government communications; expanding broadband via OneWeb | Global high-speed broadband for consumers and remote regions |
| Business Model | Legacy operator with long-term contracts; leveraging OneWeb for next-gen broadband | Subscription-based broadband service; tech-driven, agile deployment |
| Valuation | $3B | ~$227.5B (per SpaceX’s December 2024 funding round) |
| Price/Sales Multiple | 2.25x | Estimated ~23-27x* |
| Pros | Established infrastructure; diversified orbit options (GEO + LEO); stable revenue base | Innovative, scalable LEO network; disruptive low-latency connectivity |
| Cons | Legacy technology challenges; integration complexities with OneWeb; slower pace of innovation; | High capital expenditure; regulatory and competitive risks; high valuation premium; |
* (Based on SpaceX last valuation of $350B, assuming Starlink is ~65% of this value). Not financial advice.