AST SpaceMobile Trades Near $74. Here's The Subscriber Math That Justifies It.

AST SpaceMobile (NASDAQ: ASTS), a developer of low Earth orbit (LEO) satellites, went public through a merger with a special purpose acquisition company on April 7, 2021. It started trading at $11.63 per share on its first day, but now trades at nearly $74 per share.

That rally was driven by its partnerships with telecom giants such as AT&T and Verizon, the launch of its first commercial satellites, and its ambitious expansion plans. But with a market cap of $21.5 billion, it already trades at 127 times this year's sales.

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That high price-to-sales ratio might seem unsustainable, but I believe AST's subscriber growth and long-term plans justify the higher valuation. Let's see why its stock is still worth buying today.

How fast is AST SpaceMobile growing?

AST's LEO satellites help telecom companies expand their wireless networks to remote areas that terrestrial towers can't reach. It has successfully launched 13 of its BlueBird (BB) satellites over the past two years, and it plans to put 45-60 satellites into orbit by the end of this year. Over the long term, it aims to expand that constellation to more than 248 satellites.

AST already works with over 60 carriers worldwide to collectively cover more than 3 billion wireless subscribers. Its backlog reached $1.3 billion at the end of the second quarter of 2026, driven by its new contracts with commercial partners and the U.S. government. That's nearly eight times its projected revenue of $168.5 million for the full year.

As AST expands its satellite constellation, analysts expect its revenue to surge to $650.4 million in 2027 and $1.76 billion in 2028. They expect its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to turn positive in 2027 and jump to $1.35 billion in 2028. If it hits those numbers, its stock would seem a bit cheaper at 12 times its 2028 sales.

Why is AST SpaceMobile's stock still worth buying?

The LEO satellite market could expand at a 14% CAGR from 2025 to 2033, according to Grand View Research, as more private companies and national space agencies expand their orbital communications networks. AST has already established an early mover's advantage in that market by locking in dozens of wireless carriers, and it has plenty of room to grow in the commercial and government sectors. Its stock might remain volatile in this choppy market, but it could deliver significant long-term gains for investors who can tune out near-term noise.

Leo Sun has positions in Verizon Communications. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.