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A comment on A forecast of the fair market value of SpaceX's businesses. Parent comment

Re:A forecast of the fair market value of SpaceX's businesses by tliptay on Thursday April 02, 2026 @02:05PM (#47617991)
Wow! This comment inspired me to dig deeper.

After 20+ years in the market, today I learned: "The S&P 500 is a float-adjusted, market-capitalization-weighted index."

So presumably an S&P 500 index fund is not disadvantaged, since it is tracking a float-adjusted index, i.e. the weight of SpaceX will be tiny if its float is tiny.

Or, is there a nuance that I'm missing?

[ Parent | on HN ]
Re:A forecast of the fair market value of SpaceX's businesses by gruez on Thursday April 02, 2026 @02:10PM (#47618049)
>So presumably an S&P 500 index fund is not disadvantaged, since it is tracking a float-adjusted index, i.e. the weight of SpaceX will be tiny if its float is tiny.

Nasdaq already caved. FTSE and S&P are supposedly considering it.

https://www.economist.com/leaders/2026/03/31/index-providers...

[ Parent | on HN ]
Re:A forecast of the fair market value of SpaceX's businesses by AlotOfReading on Thursday April 02, 2026 @03:04PM (#47618773)
Low float, large cap companies will get a 5x multiplier.
[ Parent | on HN ]
Re:A forecast of the fair market value of SpaceX's businesses by Zigurd on Friday April 03, 2026 @08:02AM (#47625708)
The SpaceX float is small in proportion to a ridonculous valuation.
[ Parent | on HN ]