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How IPO valuation is done?

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IPOs are valued using one or a combination of one or more valuation methods. Some IPO valuation methods are based on purely mathematical formulas, while others require assumptions and yet others require comparisons.

Key IPO Valuation Methods:

  • Absolute Valuation Method.
  • Relative Valuation Method.
  • Economic Valuation Method.

There are online IPO valuation courses available that help to understand the process in greater details.


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