AST SPACEMOBILE INC (ASTS) Analysis: Benjamin Graham's Value Investor Model Ratings

AST SPACEMOBILE INC (ASTS) scores 43% using the Benjamin Graham value investor model, with low P/B and P/E ratios, low debt, and solid long-term earnings growth. However, it fails to meet criteria for sales, P/E ratio, and price/book ratio.

AST SpaceMobile Inc. (ASTS) has been making waves in the satellite internet market, presenting an intriguing opportunity for investors. The company aims to disrupt SpaceX's Starlink service by eliminating the need for clunky terminals with its direct-to-device satellite internet technology. This innovative approach has driven AST SpaceMobile's shares to surge over 100% this year [1].

AST SpaceMobile's key innovation lies in its ability to beam high-speed internet directly to smartphones from satellites, significantly improving customer value and potentially leading to increased adoption of satellite internet services. The company has partnered with major telecommunications providers like Verizon Communications, giving it access to a vast customer base of 3 billion potential subscribers. AST SpaceMobile plans to sell its service as an add-on to existing wireless contracts, sharing revenue with its partners [1].

However, AST SpaceMobile faces significant challenges. The company is currently pre-revenue and has been burning through cash, spending $543 million on capital expenditures over the past year [2]. Additionally, the company's market capitalization of $16 billion may seem cheap relative to its potential, but it is essential to consider the risks involved, such as delays in satellite launches and the need for steady revenue growth to justify its valuation.

AST SpaceMobile's latest update indicates that the company is making progress in launching its second-generation satellites. The first of these craft, weighing some 6500 kgs, is ready to leave its Midland, Texas, fabrication facility and will be shipped this August [2]. The company plans to loft every one to two months on average during the rest of 2025 and 2026, building six of these second-generation satellites (also known as BlueBirds) each month between now and the end of the year.

In conclusion, AST SpaceMobile presents an intriguing opportunity for investors looking to capitalize on the growth potential of the satellite internet market. However, it is crucial to weigh the risks and consider the company's ability to execute on its growth plans before making investment decisions.

References:
[1] https://www.ainvest.com/news/ast-spacemobile-disrupting-starlink-terminal-based-business-model-direct-device-satellite-internet-2508/
[2] https://www.advanced-television.com/2025/08/27/ast-spacemobile-insists-fm-1-satellite-will-ship-in-august/