The PSR is determined by the way, is where the market capitalization divided by sales.
Star Capital, the fund company has calculated the average price to sales ratio in the U.S. market as part of a research study in March 2011. It is 1.3. The only clue as to can arrange the following PSR-values better. Is always significant turnover in the last four quarters. There are also - and for good reason - do not use analysts' estimates.
So let's look at the PSRs of the currently most popular Internet IPOs in the U.S.:
In the truest sense of the word "latest rage" is Pandora Media, a U.S. Internet music portal. Pandora has made over the past four quarters, sales of 137.8 million U.S. dollars and thereby retracted high losses. The market capitalization currently stands at 2.8 billion U.S. dollars. The PSR is therefore extremely high 20th Nevertheless, the stock at just under one million units of shares traded daily is very popular among investors.
In online business network LinkedIn, we determine the PSR something "benign" in which we take because of the recent very high growth in sales during the first quarter of 2011 as the basis for the full year. We come then to an annualized turnover of 376 million U.S. dollars. The market capitalization is 9.7 billion U.S. dollars, however. On this basis, a PSR of astronomical 26th
The greed of investors is here at LinkedIn and other Internet IPOs, even encouraged, in which the offer is artificially scarce. How does it work? It provides for the IPO subscription willing to just a relatively few shares. Although a total of 94 outstanding on LinkedIn million shares, only 7.84 million were offered. Logically, only those 7.84 million shares on the stock are freely tradable. The strategy went on wonderfully. Investors "to beat" for the few pieces, the price skyrockets. LinkedIn is currently trading at $ 100, although it was already amibitioniert the IPO price of $ 45 most.
The only (apparent) detriment for LinkedIn: The proceeds from the IPO are correspondingly lower (Offered Shares x issue price minus costs for underwriters accompanying the IPO). This deficiency is relatively easy but then leveled out, nachgeschoben in favorable market environment in which an additional capital increase, but at much higher prices. For example, this has been practiced by the Chinese YouTube clone Youku.com (IPO price at 12.18 U.S. dollars, then capital of 48.18 U.S. dollars).
Do not have enough to have that private investors in allocating much of a chance to get cheap shares and pay later, extremely high prices, which are publicly traded shares by LinkedIn also inferior in relation to the shares of existing shareholders. Inferior because they are equipped with only one vote per share. The shares of existing shareholders, however, have ten voting. In plain language: the voice of the independent shareholders at general meetings is zero.
Alone under these circumstances would normally be reason enough to shun the stock on LinkedIn. The PSR shows a sober figure on the extent of overvaluation.
Star Capital, the fund company has calculated the average price to sales ratio in the U.S. market as part of a research study in March 2011. It is 1.3. The only clue as to can arrange the following PSR-values better. Is always significant turnover in the last four quarters. There are also - and for good reason - do not use analysts' estimates.
So let's look at the PSRs of the currently most popular Internet IPOs in the U.S.:
In the truest sense of the word "latest rage" is Pandora Media, a U.S. Internet music portal. Pandora has made over the past four quarters, sales of 137.8 million U.S. dollars and thereby retracted high losses. The market capitalization currently stands at 2.8 billion U.S. dollars. The PSR is therefore extremely high 20th Nevertheless, the stock at just under one million units of shares traded daily is very popular among investors.
In online business network LinkedIn, we determine the PSR something "benign" in which we take because of the recent very high growth in sales during the first quarter of 2011 as the basis for the full year. We come then to an annualized turnover of 376 million U.S. dollars. The market capitalization is 9.7 billion U.S. dollars, however. On this basis, a PSR of astronomical 26th
The greed of investors is here at LinkedIn and other Internet IPOs, even encouraged, in which the offer is artificially scarce. How does it work? It provides for the IPO subscription willing to just a relatively few shares. Although a total of 94 outstanding on LinkedIn million shares, only 7.84 million were offered. Logically, only those 7.84 million shares on the stock are freely tradable. The strategy went on wonderfully. Investors "to beat" for the few pieces, the price skyrockets. LinkedIn is currently trading at $ 100, although it was already amibitioniert the IPO price of $ 45 most.
The only (apparent) detriment for LinkedIn: The proceeds from the IPO are correspondingly lower (Offered Shares x issue price minus costs for underwriters accompanying the IPO). This deficiency is relatively easy but then leveled out, nachgeschoben in favorable market environment in which an additional capital increase, but at much higher prices. For example, this has been practiced by the Chinese YouTube clone Youku.com (IPO price at 12.18 U.S. dollars, then capital of 48.18 U.S. dollars).
Do not have enough to have that private investors in allocating much of a chance to get cheap shares and pay later, extremely high prices, which are publicly traded shares by LinkedIn also inferior in relation to the shares of existing shareholders. Inferior because they are equipped with only one vote per share. The shares of existing shareholders, however, have ten voting. In plain language: the voice of the independent shareholders at general meetings is zero.
Alone under these circumstances would normally be reason enough to shun the stock on LinkedIn. The PSR shows a sober figure on the extent of overvaluation.
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