Will AST SpaceMobile's inclusion in the Russell 1000 Index propel its stock to new heights, or is it already overvalued?

**AST SpaceMobile's inclusion in the Russell 1000 Index is likely to have a significant impact on the stock**, potentially propelling it to new heights due to increased institutional ownership and elevated profile among major investors. However, whether the stock is already overvalued is a matter of perspective and depends on various valuation metrics and the company's future growth prospects.

1. **Inclusion in the Russell 1000 Index**: AST SpaceMobile's upcoming inclusion in the Russell 1000 Index on June 27 is a significant event that could drive demand for the stock. This is because large index funds that track the Russell 1000 will need to purchase shares to replicate the index, which can lead to increased liquidity and demand for the stock.
2. **Stock Performance and Market Sentiment**: AST SpaceMobile's stock has already experienced a substantial rally, with a triple-digit percentage gain in June and a year-to-date increase of 140%. This positive momentum could carry over following the inclusion in the Russell 1000 Index.
3. **Valuation Metrics**:
- The company's P/E (Price to Earnings) ratio as of July 1, 2025, stands at 3285.36, which is extremely high when compared to industry averages. This high P/E ratio suggests that the stock may be overvalued based on earnings, but it's important to note that such a valuation could also reflect investor expectations of future growth.
- The P/S (Price to Sales) ratio is 15.15, which is also relatively high. This indicates that the market is currently valuing the company's sales at a premium.
- The Price to Book (P/B) ratio is not available, but a lack of this information does not allow for a comprehensive analysis of valuation.

4. **Future Growth Prospects**: AST SpaceMobile is positioned strategically in the space-based cellular service market and has recently secured significant partnerships and approvals. These developments suggest a strong growth potential, which could support the high valuation.
5. **Risk Factors**: It's important to consider that the company is currently forecasted to burn cash through FY2027 and has a market cap that has reached nearly $16.5 billion, which is substantial compared to its expected revenue of just over $60 million for the year. These factors could indicate that the stock is overvalued based