The Valuation Gap Between Public And Private Markets

What can start-ups and investors learn from the numerous failed IPOs in 2019? How can the differences in valuation be explained and what will that mean for the future?

The year 2019 has made it clear that there are two different worlds of company valuation in public and private equity markets. While both worlds use approaches to analyse the return on invested capital, the valuation of recurring income and future growth potential after the IPO still leads to discrepancies.

This Oaklins report provides fundamental insights into the different approaches to valuation in public and private equity markets, how they compare and where their respective limitations may explain the differences in prices. It will further use prominent examples to showcase how access to information and a thorough analysis of a company’s business model are required to accurately determine a company’s value.

Original  ack2047 pp 4x5 weiss
Carsten Wagener Hamburg, Germany
Associate Director
View profile

Related Private Equity articles