Space X sparks commercial space craze
The commercial aerospace industry is entering a stage from technology verification to large-scale industrialization. The listing of SpaceX provides a clear valuation anchor for the capital market, and the capital boom set off by it is also reshaping the capital path of Chinese commercial aerospace companies. Recently, SpaceX was officially included in the Nasdaq 100 Index. It took SpaceX only 15 trading days from landing on the Nasdaq to joining the global core technology index, setting a rare record in the history of the Nasdaq.
The commercial aerospace industry is entering a stage from technology verification to large-scale industrialization. The listing of SpaceX provides a clear valuation anchor for the capital market, and the capital boom set off by it is also reshaping the capital path of Chinese commercial aerospace companies. Recently, SpaceX was officially included in the Nasdaq 100 Index. It took SpaceX only 15 trading days from landing on the Nasdaq to joining the global core technology index, setting a rare record in the history of the Nasdaq. Just as the global capital market is re-examining the value of commercial aerospace, China's commercial aerospace technology breakthrough has also reached a critical juncture. On July 10, the Long March 10B carrier rocket completed its first flight mission. One stage was successfully captured and recovered by my country's first rocket net system recovery offshore platform "Navigator". It was also the first time in the world that a launch vehicle net system was recovered at sea. On the one hand, commercial aerospace has entered the horizons of global investors as a core technology asset for the first time, and on the other hand, China's commercial aerospace has achieved a milestone breakthrough in the field of reusable rockets. Technological breakthroughs, business model innovation and capital revaluation are resonating. The commercial aerospace track, which has long been a "niche theme", is ushering in a new stage from industrial imagination to large-scale commercial implementation. SpaceX’s lightning inclusion in the index is due to the new regulations implemented by Nasdaq on May 1 this year. Super large new stocks that rank among the top 40 in the index by market value can apply for inclusion after 15 trading days of listing, replacing the previous waiting period of at least 3 months. Nasdaq also simultaneously canceled the 10% minimum circulating share ratio requirement, consolidated the market value of different types of shares, and updated total equity data on a quarterly basis. The market generally believes that this series of rule adjustments are "tailor-made" to a large extent for SpaceX. In the past, commercial aerospace has long been regarded as a high-investment, long-cycle industry by the capital market. Even with technological advantages, it is still difficult for companies to obtain a valuation system similar to that of large technology companies. This inclusion in the index means that for the first time, commercial aerospace has obtained an "identity card" to compete with technology giants such as Apple, Microsoft, and Nvidia. More importantly, index inclusion will bring about the need for passive capital allocation. JPMorgan Chase estimates that the Nasdaq 100 Index alone will attract about $4.3 billion in passive funds. If the effect of simultaneous inclusion in the MSCI and FTSE Russell global index systems is included, the total scale of global passive fund purchases can reach approximately US$35 billion. SpaceX's performance has experienced significant fluctuations since its listing. In the early days of its listing, it was highly sought after by capital, and its stock price continued to rise. It once touched US$225.64 in intraday trading on June 16, corresponding to a market value of approximately US$2.66 trillion. But then, investors began to reassess valuation levels, and stock prices corrected. On the day it was included in the Nasdaq 100 Index, SpaceX reported US$149.47, falling below the opening price on its first day of listing, and its total market value fell back to approximately US$1.95 trillion. However, as the silent period for IPO underwriters ended on July 6, as of July 7, 14 mainstream brokerages and institutions had included SpaceX in their research scope for the first time, and 13 gave it a "buy" or "overweight" rating. The core factor that supports these institutions' optimism about SpaceX is not simply its rocket manufacturing capabilities, but the closed business loop it has formed. Among them, recyclable rocket technology has reduced the cost of entering space, allowing commercial launches to gradually move from one-time projects to large-scale operations; the Starlink business provides a sustainable source of income, distinguishing SpaceX from traditional aerospace companies. Looking at broader industry trends, commercial aerospace is undergoing a business model restructuring. The World Economic Forum and Deloitte pointed out in a recent report that aerospace companies are shifting from selling one-time hardware assets to providing continuous services such as communications, intelligence, and monitoring. The focus of value is shifting from "space assets themselves" to "the actual results that space assets can create." Under this trend, investors may no longer evaluate aerospace companies based on the logic of traditional aviation manufacturing companies in the future, but will pay more attention to whether the company can form an order revenue and platform ecosystem similar to that of a software company.
As Brian Gesuale, an aerospace and defense industry analyst at the American financial services company Raymond James, said, SpaceX has formed an "infrastructure flywheel": Falcon rockets support the development of Starlink, Starlink revenue further supports starship research and development, and starships may open up new commercial space. Guosheng Securities’ research report pointed out that the acceleration of SpaceX’s listing process and the iteration of starships are reshaping the global commercial aerospace competition landscape and valuation system. CITIC Securities also previously judged that around 2026, “the commercial aerospace industry will enter a key turning point from ‘technical verification’ to ‘large-scale industrialization’.” The listing of SpaceX provides a clear valuation anchor for the capital market. However, the risks faced by SpaceX cannot be ignored. The first is profitability pressure. Commercial aerospace requires continuous investment in rocket research and development, satellite deployment and infrastructure construction. High growth does not mean short-term profitability. Financial data shows that SpaceX’s revenue in the first quarter of 2026 was US$4.694 billion, with a net loss of US$4.276 billion. Since its establishment in 2002, SpaceX has incurred cumulative losses of approximately US$41.3 billion. Keith Snyder, an analyst at CFRA Research, a US financial research institution, pointed out that SpaceX is an excellent company, but if the market valuation has already reflected a large number of future success expectations in advance, even an excellent company may become an unattractive investment target. In addition, the lifting of restricted shares after listing may also continue to affect stock price performance. As early investors and employee holdings gradually enter the circulation market, the new supply of shares may put pressure on short-term prices. The listing and indexation of SpaceX are setting off an unprecedented capital race in the global commercial aerospace field. This race is not only reflected in the United States, but also spreads to Europe, Asia and even the Middle East. Relevant research by the World Economic Forum and Deloitte believes that sovereignty demand, commercial application growth, and corporate innovation speed are becoming the three major structural forces driving the long-term development of commercial aerospace. Among them, the demand for independent space capabilities by various countries is forming a long-term purchasing power; and the rapid iteration capabilities of commercial companies are shortening the cycle from technology deployment to commercial realization. In the U.S. market, after SpaceX went public, related companies such as Rocket Lab and Firefly Aerospace received more attention. Rocket Lab is regarded by Wall Street as an important commercial aerospace enterprise besides SpaceX. On the one hand, the company develops its rocket launch business, and on the other hand, it expands its business territory through satellite manufacturing and satellite communications layout. Firefly Aerospace is also accelerating capital deployment. After the company completed its historic IPO in August 2025, it launched a subsequent public offering again in May 2026. Michael Leshock, an analyst at KeyBanc, Wall Street's top investment institution, raised both the above-mentioned companies to an "overweight" rating, pointing out that the short-term fluctuations caused by SpaceX's listing created opportunities for intervention. Currently, the activities of the National Aeronautics and Space Administration (NASA) are accelerating at a speed “unprecedented since the Apollo era.” There is a structural shortage of commercial launch supplies, and institutional funding’s interest in the aerospace track continues to rise. Jonathan Sigman, an analyst at Stifel Financial, an American investment bank, pointed out in a report that the three major space terminal markets of defense, commercial and government are developing in a positive direction at the same time. In Europe, traditional aerospace giants and emerging forces are also accelerating their capitalization process. SpaceX is currently responsible for about 80% of the world's commercial payload launch missions. Its Falcon 9 has a single exclusive mission price of US$74 million and a ride-sharing price of US$7,000 per kilogram, which has forced the European commercial space launch service company Arianespace (Arianespace) and United Launch Alliance to carry out "survival restructuring." Faced with this competitive pressure, the European Space Agency continues to provide financial support to commercial space companies through the "Boost!" program.
German satellite manufacturer OHB announced in June that it would raise US$586 million through the issuance of new shares for investment in production facilities, acquisitions and launch vehicle research and development. German startup Isar Aerospace completed €270 million in Series D financing, with new investors including Island Green Capital and Molten Ventures. Spanish PLD Space has received a total of 210 million euros in financing in 2026. Its MIURA 5 rocket plans to conduct its first test flight in 2026. The European Investment Bank also provided the former with a 30 million euro loan. The wave of commercial aerospace capital in emerging markets is equally strong. In India, Skyroot Aerospace received US$60 million in new financing from Singapore's sovereign wealth fund GIC and US venture capital institution Sherpalo Ventures in May, with a valuation of US$1.1 billion, making it India's first space technology "unicorn". The company's cumulative financing has reached US$160 million. On July 7, Temasek led a US$100 million investment in Indian space technology company PIXXEL. India's National Space Promotion and Authorization Center has also launched a technology adoption fund of 5 billion rupees and established a venture capital fund of 100 billion rupees, planning to support about 40 space start-ups in the next five years. Middle East sovereign wealth funds have become important participants in the SpaceX IPO. The Saudi Public Investment Fund and the Kuwait Investment Authority each subscribed to $1 billion to $5 billion worth of SpaceX shares. The Kingdom Holding Company disclosed that it holds more than 42.4 million Class A shares of SpaceX, worth approximately $6.83 billion. Analysis pointed out that the large-scale subscription by Middle Eastern capital reflects the strategic intention of Gulf countries to occupy a key position in the construction of global scientific and technological infrastructure through the layout of commercial aerospace and AI (artificial intelligence) industries. The capital boom set off by SpaceX is also reshaping the capital path of Chinese commercial aerospace companies. In recent years, China's commercial aerospace industry has entered a stage of rapid development. From commercial rockets and satellite manufacturing to satellite Internet and remote sensing applications, the industrial chain is constantly improving. With the breakthrough of reusable rocket technology, the acceleration of low-orbit satellite Internet construction, and the gradual maturity of the satellite application market, China's commercial aerospace is moving from the technology verification stage to the industrialization stage. The policy level also continues to increase. Commercial aerospace has been included in the "Government Work Report" for three consecutive years; the listing guidelines for the Shanghai Stock Exchange's Science and Technology Innovation Board have further clarified the listing conditions for hard technology companies such as commercial rockets, providing institutional support for industry capitalization; in April this year, the National Space Administration and the State Administration for Market Regulation jointly released the "Commercial Aerospace Standard System (Version 1.0)". Centering on the overall layout of "Arrow Star Field Governance", the system builds a standard structure covering 6 first-level branches and 32 second-level branches including industry governance, R&D and manufacturing, launch and test operation control, and space application services. Driven by both industry and policy, 2026 is regarded as an important window period for the capitalization of China’s commercial aerospace industry. Capital is pouring into this track at an accelerating pace. RuiShou analysis data shows that the disclosed financing amount in the commercial aerospace field in the first quarter of 2026 reached 8.02 billion yuan, a year-on-year increase of 4.6 times. In the first half of 2026 alone, the scale of domestic commercial aerospace financing has reached 15.13 billion yuan. Many companies have completed large-scale financing. In February 2026, Interstellar Glory completed a D++ round of financing of 5.037 billion yuan; Changguang Satellite completed nearly 5 billion yuan in equity financing; Hongqing Technology completed a Pre-B round of financing of over 1.3 billion yuan. However, for commercial aerospace, which is still in the early stages of industrialization, capital enthusiasm still requires technological breakthroughs and commercial closed-loop support. On July 10, the Long March 10B carrier rocket successfully made its first flight at the Wenchang Commercial Space Launch Site in Hainan. One stage was successfully captured and recovered by my country's first rocket network recovery offshore platform "Navigator", marking the first time that China's large-capacity reusable rocket has completed the complete technical verification of "orbit launch + successful recovery".
Reusable rockets have always been regarded as a key technology for commercial aerospace to reduce costs and achieve large-scale development. In the past, SpaceX relied on the successful reuse of the Falcon series rockets to establish the world's leading low-cost launch capabilities and became an important anchor of the commercial aerospace valuation system. The Long March 10B has completed the maritime network recovery verification, which means that China's commercial aerospace has further narrowed the gap with the international leading level in the core technology path. The industry believes that this breakthrough not only means that China has made important progress in the field of reusable rockets, but also provides a new technological anchor for the capitalization of commercial aerospace companies. Whether retrievable medium and large rockets can be put into orbit, recovered and reused has become an important indicator for the capital market to evaluate the technological maturity of companies and judge their commercialization potential. Coupled with the acceleration of low-orbit mega-constellation networking in the second half of 2026, the intensive advancement of commercial rocket recovery verification, and the IPO sprint of leading companies, China's commercial aerospace is entering a critical stage from technical verification to large-scale commercial implementation. As of July 7, according to incomplete statistics by reporters, a total of 10 private commercial aerospace companies are lining up for IPO, covering commercial rockets, communication satellites and other directions. Among them, the number of companies in the commercial rocket and communication satellite fields is half each, and many companies are targeting the Science and Technology Innovation Board. Enterprises such as Blue Arrow Aerospace, China Science and Technology Aerospace, and Micro-Nano Starry Sky have entered the "inquiry" stage. Cao Meng, senior vice president and chief engineer of Beijing Aerospace Yuxing Technology Co., Ltd., said that the entry of commercial aerospace companies into the capital market will help promote the capitalization of companies and accelerate the pace of catching up with leading overseas companies. Zhang Sinuo, deputy director of CIC Consulting, believes that the intensive rush of private commercial aerospace companies into the capital market is an important signal that China's commercial aerospace has entered a new stage. It also means that industry competition and differentiation will further intensify. However, the valuation paradigm brought by SpaceX cannot simply be copied to Chinese commercial aerospace companies. Currently, many Chinese commercial aerospace companies still face common valuation problems. If PE (price-to-earnings ratio) valuation is used, many companies have not yet achieved stable profitability; if PS (price-to-sales ratio) valuation is used, the current scale of commercial revenue is still limited; if DCF (discounted cash flow) model is used, there is still great uncertainty in the future market space and business model, and valuations are prone to large differences. Relevant research by the World Economic Forum and Deloitte pointed out that in the future, the value growth of the aerospace industry will come more from communication services, earth observation, space data and other application fields, rather than relying solely on hardware sales. Industry organizations believe that China's commercial aerospace industry needs to shift from "selling rockets" to "selling services" in the future, including satellite Internet of Things, remote sensing data subscription, space information services, and future space computing. For Chinese commercial aerospace companies, the capital boom is just the starting point. How to convert financing advantages into commercial income and technological advantages into platform capabilities will determine whether an enterprise can truly grow from a "conceptual asset" into a "core technology asset" recognized by the capital market. Otherwise, companies that lack sustained cash flow support may still face the risk of being popular in the early stage of listing and then experiencing a return in valuation. (
As Brian Gesuale, an aerospace and defense industry analyst at the American financial services company Raymond James, said, SpaceX has formed an "infrastructure flywheel": Falcon rockets support the development of Starlink, Starlink revenue further supports starship research and development, and starships may open up new commercial space. Guosheng Securities’ research report pointed out that the acceleration of SpaceX’s listing process and the iteration of starships are reshaping the global commercial aerospace competition landscape and valuation system. CITIC Securities also previously judged that around 2026, “the commercial aerospace industry will enter a key turning point from ‘technical verification’ to ‘large-scale industrialization’.” The listing of SpaceX provides a clear valuation anchor for the capital market. However, the risks faced by SpaceX cannot be ignored. The first is profitability pressure. Commercial aerospace requires continuous investment in rocket research and development, satellite deployment and infrastructure construction. High growth does not mean short-term profitability. Financial data shows that SpaceX’s revenue in the first quarter of 2026 was US$4.694 billion, with a net loss of US$4.276 billion. Since its establishment in 2002, SpaceX has incurred cumulative losses of approximately US$41.3 billion. Keith Snyder, an analyst at CFRA Research, a US financial research institution, pointed out that SpaceX is an excellent company, but if the market valuation has already reflected a large number of future success expectations in advance, even an excellent company may become an unattractive investment target. In addition, the lifting of restricted shares after listing may also continue to affect stock price performance. As early investors and employee holdings gradually enter the circulation market, the new supply of shares may put pressure on short-term prices. The listing and indexation of SpaceX are setting off an unprecedented capital race in the global commercial aerospace field. This race is not only reflected in the United States, but also spreads to Europe, Asia and even the Middle East. Relevant research by the World Economic Forum and Deloitte believes that sovereignty demand, commercial application growth, and corporate innovation speed are becoming the three major structural forces driving the long-term development of commercial aerospace. Among them, the demand for independent space capabilities by various countries is forming a long-term purchasing power; and the rapid iteration capabilities of commercial companies are shortening the cycle from technology deployment to commercial realization. In the U.S. market, after SpaceX went public, related companies such as Rocket Lab and Firefly Aerospace received more attention. Rocket Lab is regarded by Wall Street as an important commercial aerospace enterprise besides SpaceX. On the one hand, the company develops its rocket launch business, and on the other hand, it expands its business territory through satellite manufacturing and satellite communications layout. Firefly Aerospace is also accelerating capital deployment. After the company completed its historic IPO in August 2025, it launched a subsequent public offering again in May 2026. Michael Leshock, an analyst at KeyBanc, Wall Street's top investment institution, raised both the above-mentioned companies to an "overweight" rating, pointing out that the short-term fluctuations caused by SpaceX's listing created opportunities for intervention. Currently, the activities of the National Aeronautics and Space Administration (NASA) are accelerating at a speed “unprecedented since the Apollo era.” There is a structural shortage of commercial launch supplies, and institutional funding’s interest in the aerospace track continues to rise. Jonathan Sigman, an analyst at Stifel Financial, an American investment bank, pointed out in a report that the three major space terminal markets of defense, commercial and government are developing in a positive direction at the same time. In Europe, traditional aerospace giants and emerging forces are also accelerating their capitalization process. SpaceX is currently responsible for about 80% of the world's commercial payload launch missions. Its Falcon 9 has a single exclusive mission price of US$74 million and a ride-sharing price of US$7,000 per kilogram, which has forced the European commercial space launch service company Arianespace (Arianespace) and United Launch Alliance to carry out "survival restructuring." Faced with this competitive pressure, the European Space Agency continues to provide financial support to commercial space companies through the "Boost!" program.
German satellite manufacturer OHB announced in June that it would raise US$586 million through the issuance of new shares for investment in production facilities, acquisitions and launch vehicle research and development. German startup Isar Aerospace completed €270 million in Series D financing, with new investors including Island Green Capital and Molten Ventures. Spanish PLD Space has received a total of 210 million euros in financing in 2026. Its MIURA 5 rocket plans to conduct its first test flight in 2026. The European Investment Bank also provided the former with a 30 million euro loan. The wave of commercial aerospace capital in emerging markets is equally strong. In India, Skyroot Aerospace received US$60 million in new financing from Singapore's sovereign wealth fund GIC and US venture capital institution Sherpalo Ventures in May, with a valuation of US$1.1 billion, making it India's first space technology "unicorn". The company's cumulative financing has reached US$160 million. On July 7, Temasek led a US$100 million investment in Indian space technology company PIXXEL. India's National Space Promotion and Authorization Center has also launched a technology adoption fund of 5 billion rupees and established a venture capital fund of 100 billion rupees, planning to support about 40 space start-ups in the next five years. Middle East sovereign wealth funds have become important participants in the SpaceX IPO. The Saudi Public Investment Fund and the Kuwait Investment Authority each subscribed to $1 billion to $5 billion worth of SpaceX shares. The Kingdom Holding Company disclosed that it holds more than 42.4 million Class A shares of SpaceX, worth approximately $6.83 billion. Analysis pointed out that the large-scale subscription by Middle Eastern capital reflects the strategic intention of Gulf countries to occupy a key position in the construction of global scientific and technological infrastructure through the layout of commercial aerospace and AI (artificial intelligence) industries. The capital boom set off by SpaceX is also reshaping the capital path of Chinese commercial aerospace companies. In recent years, China's commercial aerospace industry has entered a stage of rapid development. From commercial rockets and satellite manufacturing to satellite Internet and remote sensing applications, the industrial chain is constantly improving. With the breakthrough of reusable rocket technology, the acceleration of low-orbit satellite Internet construction, and the gradual maturity of the satellite application market, China's commercial aerospace is moving from the technology verification stage to the industrialization stage. The policy level also continues to increase. Commercial aerospace has been included in the "Government Work Report" for three consecutive years; the listing guidelines for the Shanghai Stock Exchange's Science and Technology Innovation Board have further clarified the listing conditions for hard technology companies such as commercial rockets, providing institutional support for industry capitalization; in April this year, the National Space Administration and the State Administration for Market Regulation jointly released the "Commercial Aerospace Standard System (Version 1.0)". Centering on the overall layout of "Arrow Star Field Governance", the system builds a standard structure covering 6 first-level branches and 32 second-level branches including industry governance, R&D and manufacturing, launch and test operation control, and space application services. Driven by both industry and policy, 2026 is regarded as an important window period for the capitalization of China’s commercial aerospace industry. Capital is pouring into this track at an accelerating pace. RuiShou analysis data shows that the disclosed financing amount in the commercial aerospace field in the first quarter of 2026 reached 8.02 billion yuan, a year-on-year increase of 4.6 times. In the first half of 2026 alone, the scale of domestic commercial aerospace financing has reached 15.13 billion yuan. Many companies have completed large-scale financing. In February 2026, Interstellar Glory completed a D++ round of financing of 5.037 billion yuan; Changguang Satellite completed nearly 5 billion yuan in equity financing; Hongqing Technology completed a Pre-B round of financing of over 1.3 billion yuan. However, for commercial aerospace, which is still in the early stages of industrialization, capital enthusiasm still requires technological breakthroughs and commercial closed-loop support. On July 10, the Long March 10B carrier rocket successfully made its first flight at the Wenchang Commercial Space Launch Site in Hainan. One stage was successfully captured and recovered by my country's first rocket network recovery offshore platform "Navigator", marking the first time that China's large-capacity reusable rocket has completed the complete technical verification of "orbit launch + successful recovery".
Reusable rockets have always been regarded as a key technology for commercial aerospace to reduce costs and achieve large-scale development. In the past, SpaceX relied on the successful reuse of the Falcon series rockets to establish the world's leading low-cost launch capabilities and became an important anchor of the commercial aerospace valuation system. The Long March 10B has completed the maritime network recovery verification, which means that China's commercial aerospace has further narrowed the gap with the international leading level in the core technology path. The industry believes that this breakthrough not only means that China has made important progress in the field of reusable rockets, but also provides a new technological anchor for the capitalization of commercial aerospace companies. Whether retrievable medium and large rockets can be put into orbit, recovered and reused has become an important indicator for the capital market to evaluate the technological maturity of companies and judge their commercialization potential. Coupled with the acceleration of low-orbit mega-constellation networking in the second half of 2026, the intensive advancement of commercial rocket recovery verification, and the IPO sprint of leading companies, China's commercial aerospace is entering a critical stage from technical verification to large-scale commercial implementation. As of July 7, according to incomplete statistics by reporters, a total of 10 private commercial aerospace companies are lining up for IPO, covering commercial rockets, communication satellites and other directions. Among them, the number of companies in the commercial rocket and communication satellite fields is half each, and many companies are targeting the Science and Technology Innovation Board. Enterprises such as Blue Arrow Aerospace, China Science and Technology Aerospace, and Micro-Nano Starry Sky have entered the "inquiry" stage. Cao Meng, senior vice president and chief engineer of Beijing Aerospace Yuxing Technology Co., Ltd., said that the entry of commercial aerospace companies into the capital market will help promote the capitalization of companies and accelerate the pace of catching up with leading overseas companies. Zhang Sinuo, deputy director of CIC Consulting, believes that the intensive rush of private commercial aerospace companies into the capital market is an important signal that China's commercial aerospace has entered a new stage. It also means that industry competition and differentiation will further intensify. However, the valuation paradigm brought by SpaceX cannot simply be copied to Chinese commercial aerospace companies. Currently, many Chinese commercial aerospace companies still face common valuation problems. If PE (price-to-earnings ratio) valuation is used, many companies have not yet achieved stable profitability; if PS (price-to-sales ratio) valuation is used, the current scale of commercial revenue is still limited; if DCF (discounted cash flow) model is used, there is still great uncertainty in the future market space and business model, and valuations are prone to large differences. Relevant research by the World Economic Forum and Deloitte pointed out that in the future, the value growth of the aerospace industry will come more from communication services, earth observation, space data and other application fields, rather than relying solely on hardware sales. Industry organizations believe that China's commercial aerospace industry needs to shift from "selling rockets" to "selling services" in the future, including satellite Internet of Things, remote sensing data subscription, space information services, and future space computing. For Chinese commercial aerospace companies, the capital boom is just the starting point. How to convert financing advantages into commercial income and technological advantages into platform capabilities will determine whether an enterprise can truly grow from a "conceptual asset" into a "core technology asset" recognized by the capital market. Otherwise, companies that lack sustained cash flow support may still face the risk of being popular in the early stage of listing and then experiencing a return in valuation. (