Simcountry
Forum General IPO Requirements

IPO Requirements

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John Galt

All worlds
18 Feb 2020 13:08Link
I think the IPO requirements need to be adjusted in light of all the recent changes to products and prices. Most well performing corporations in a CEO end up with a market value of around 400-500B and a P/E ratio of 45-50. The only corporations that are able to consistently get their P/E ratios below 40 to trigger an IPO are ones that have recently had their market value drop significantly due to surplus, and then have their P/E ratio drop significantly when the product goes back into shortage. I think the IPO requirements should be adjusted to the following:

Market Value > 300B
P/E Ratio < 50

This will mostly be for the benefit of CEOs. It is very easy to IPO with countries because the P/E ratios are much better due to no country resources fee.

Thoughts?
J
johnV

All worlds
18 Feb 2020 13:57Link
I agree. The last change the GM's maid for IPO's was useless for CEO's.
As you said the problem lies in the country resource fee lowering the net profit for Ent corps, what the P/E ratio is based on.
A lot of corporations use EBITA to measure their profitability. It is earnings before interest, taxes and amortization.
If the P/E ratio in the game used total profit rather than net then it would be fair to both countries and CEO's.
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Lord Mndz

All worlds
18 Feb 2020 18:07Link
I have already requested this long time ago, together with many more CEO improvements..

you can find many more wishes.

CEO improvements
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abbotnettles

All worlds
23 Mar 2020 22:34Link
yea the P/E does need to be loosened up some of the less profitable corps hang around the 60 P/E
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Andy

All worlds
30 Mar 2020 17:13Link
Enterprises tax has no influence on the market value of corporations.

The tax level you set yourself, for any corporation does.

The market value for all corporations depends on the net profit, after tax.

There are more factors contributing to the market value of corporations.
One is indeed market situation but there are more.

we have in the past made changes to the IPO conditions.
These depended on the average market value we have seen and was sometimes triggered by players who argued that the CEO conditions are wrong.

I will look into it.
I do not think that corporation values will be depressed because of surpluses in the market. I think in general, that the markets have more shortages than surpluses.

Also, corporations producing products that show a surplus, should probably not go public.
J
John Galt

All worlds
30 Mar 2020 19:50Link
Andy you are right about enterprise tax. However that is not the culprit. It is actually country resources used fee, which is part of the calculation for net profit. This is the main factor that makes it very difficult to IPO CEO corporations because it makes the P/E ratio much higher.
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Lord Mndz

All worlds
30 Mar 2020 20:36Link
I have the picture in the link few posts above showing exactly why ipo for CEOs is unfair to compare with state corporations
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Andy

All worlds
02 Apr 2020 14:12Link
Maybe.
but the solution is in reviewing the IPO requirements.

Indeed, CEO corporations are very profitable for you, make your enterprises turn a high profit
and
at the same time
they help many countries with needed cash injections.

checking and maybe changing the IPO conditions will be a small price to pay.

I am open to suggestions that are balanced, not just based on what you wish for your own situation.
J
John Galt

All worlds
02 Apr 2020 17:31Link
You seem hellbent on making your own game terrible. I will just leave you to it. I will no longer post any suggestions to the game. There is no point. It feels like I am talking to a bot sometimes. I will be going into hibernation mode until things improve.