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Forum Help P/E of Corporations (Little Upsilon)

P/E of Corporations (Little Upsilon)

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Aaron Moore (Little Upsilon)

All worlds
17 Apr 2010 14:59Link
I have several profitable corporations that I'd like to eventually go public with. One recurring theme I'm seeing though is a message like this... "The P/E of this corporation (28.2) is too high for an IPO (< 12.0)"

It meets the value and assets goals, but I have no idea how I can influence this segment. Any assistance someone could offer would be greatly appreciated.
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Vicious (Little Upsilon)

All worlds
18 Apr 2010 05:24Link
As long as the market value is at least 175b and the assets are at least 80b, you should be able to do an IPO. For an IPO, P/E doesn't matter. The automation is lying when it says that a P/E <12.0 is necessary for an IPO.
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White Darkness (Little Upsilon)

All worlds
18 Apr 2010 09:50Link
It's a 2 out of 3 arrangement.

Market value greater than 175B
P/E ratio less than 12.0
Corporation Assets greater than 80B

As long as you meet 2 out of 3 of those, it's good to go.
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Matthew Patton (Fearless Blue)

All worlds
20 Apr 2010 08:50Link
if you want to get into public corporations you are going to have to learn P/E
companies with high profits and low market value have low P/e