How does Investment Banker price an IPO? | Coursera Community

How does Investment Banker price an IPO?

  • 15 March 2021
  • 6 replies
  • 38 views

Userlevel 6
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Take this example of Coursera going public 

https://seekingalpha.com/article/4413745-coursera-education-disruptor-goes-public

How does Investment Banker price a company like Coursera?  

Any arm chair or professional Investment Banker or investors care to share their thoughts?

Are there such course?

 


6 replies

Userlevel 4
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@ele81946 I would assume using one of the methods you would normally use to value a startup during its many funding rounds? So complicated methods like DCF based valuation or simpler methods in Relative valuation. What do you think?

 

Userlevel 6
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@devp  yes, DCF would certainly be one of the tools used.  Would you like to give it a try using Coursera as a case study with the limited information available thereoff?  And sharing assumptions that you feel an average investor can understand?

Userlevel 4
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I actually just finished doing 2 different valuation exercises using a variety of methods. DCF valuation especially is very cumbersome but it has its own importance. I would urge you to take a look at Aswath Damodaran’s work and then CFI’s free resources. They helped me a lot.

Userlevel 4
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I am spending my time on something else at the moment. But give it a try and I can answer any questions you might have. We can use this thread to discuss.

Userlevel 6
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@devp  thank you very much for the reference to CFI’s free resources.  I’ll check it out and will certainly ping you when I run into difficulties.  

Userlevel 4
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Yes, sure!

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