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IPO Valuation: What it actually means?
IPO valuation estimates the price range at which a company could list its shares on a public market, taking into account earnings, growth, sector multiples, liquidity, investor sentiment and listing-venue dynamics. Consultants benchmark against comparable listed peers and recent IPOs, adjust for size and governance, and run DCF or sum-of-the-parts cross-checks. They also identify value-enhancement actions pre-IPO — clarifying the equity story, segment reporting, cleaning up related-party transactions. A credible IPO valuation helps the company, banks and owners align on expectations and improves the chance of a successful book-build.
