How IPO valuation is done?

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.