How to evaluate an IPO? Secrets of Successful Investing
The IPO pricing model, developed by iFinik Investments, implies an assessment of a company entering an IPO according to the 10 most important parameters. Points are assigned for each parameter (from 1 to 5 star points). As a result, the company can score from 10 to 50 points. That is, the final score is comparable to the stars - from 1 to 5. The assessment is carried out according to the following parameters: 1. Underwriters. 2. The product of the company and the level of "hype". 3. Growth in revenue. 4. Profitability. 5. Debt level. 6. Multipliers. 7. Market size. 8. Management. 9. IPO funds. 10. Allocation and Free Float. Now about everything in order: 1. Underwriters. The level of the underwriter, his fame and authority, indicate the reliability of information about the company. As well as underwriters, one can draw a conclusion about the average yield of placements. Little-known underwriters with a low average return of less than 10% over the past six months get the lowe