IPO Metrics Comparable to 2007 and 2000
first two months of this year, 42 companies went public..raising $8.3 billion..tying 2007 for busiest start to a year for initial public offerings since 2000
investors are bidding aggressively for newly minted shares this year..paying median 14.5 times annual sales compared with six times in 2007..at the height of the Internet frenzy in early 2000, they paid a whopping 30 times – Wall Street Journal
So the median IPO this year is going for 14.5Xs sales vs. 6Xs in 2007 and 30Xs in 2000. This could be bullish if we’re going to 1999-2000 type heights or bearish if we’re extended beyond the 2007 top.