The Draft Board: Understanding IPO ValuationThink of an Initial Public Offering, or IPO, as the biggest draft night of the year. When a priv

The Draft Board: Understanding IPO ValuationThink of an Initial Public Offering, or IPO, as the biggest draft night of the year. When a private company decides to go public, it is essentially entering the league for the first time. The IPO price is like a rookie contract value. It is not just a random number. It is set by analysts who weigh a company's stats against its peers. They look at growth, stability, and potential to determine if this is a star pick or a reach. If you are new to this, remember that the price reflects what investors believe...