Valuing IPOs

• 成果类型: Article
• 署名作者: Kim, M; Ritter, JR
• 署名单位: State University System of Florida; University of Florida; Kyung Hee University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/S0304-405X(99)00027-6
• 发表日期: 1999
• 页码: 409-437
• 关键词: initial public offerings; valuation; comparable firms

摘要

The use of accounting information in conjunction with comparable firm multiples is widely recommended for valuing initial public offerings (IPOs). We find that the price-earnings (P/E), market-to-book, and price-to-sales multiples of comparable firms have only modest predictive ability without further adjustments. This is largely due to the wide variation of these ratios for young firms within an industry. PIE multiples using forecasted earnings result in much more accurate valuations than multiples using trailing earnings. (C) 1999 Elsevier Science S.A. All rights reserved.