Relative Valuation Of An IPO Company

Relative Valuation Of An IPO Company

Imagine that you are charged with valuing a start-up company that is about to do an IPO. Good sources of information about forthcoming IPOs are, for example, http://www.nasdaq.com/markets/ipos/activity.aspx?tab=upcoming and http://seekingalpha.com/stock-ideas/ipos.

While as a conference topic, you don't have to do actual valuation, please choose one company soon going public and answer the following questions: What multiples ratios would you use to value this company? What peer companies would you choose for this valuation? Explain.