How is the valuation of a company determined during an IPO?
- Submitted by 9 months ago
John milleer
Answered 9 months ago
The valuation of a company during an IPO is determined through a combination of financial analysis, market conditions, and investor demand. Key factors include revenue, profit margins, growth potential, and industry comparisons. Investment banks often use discounted cash flow (DCF) models, earnings multiples, and peer benchmarking to set a price range. Roadshows gauge investor interest, influencing final pricing.
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