Evaluating Ipo And Find The Appropriate Offer Price

The stock price went from $34 at the beginning of the 2010 fiscal year to $46 dollars in April largely

The change in the growth assumption has significant impact on the stock price. Under the high estimate of growth rate 236%, the new price per share is $107.56. Under the low estimate of growth rate 35%, the new price per share is $2.36.

selling at only six times cash flow per share; and its price/earnings ratio of nine was a far cry from

Which is roughly a 75% decrease of $7.90. Investors predict the stock will continue to diminish in value.

The weekly performance of the stock has a trend of constant growth with a significant growth in price compared to the IBM stock which happened in week four to six (09/30/11-10/06/16). A major factor for the large jump in the stock price is due to the shocking current news of Google acquiring Motorola Mobility for $12.5 billion. Right after the announcement of

The initial public offering (IPO) price was $6.22. Just for Feet stock reached a high of $37 in the last quarter

Earnings were down 23.6 percent in the first half of the year. The stock was trading around $17 per share, a far cry from the $40 neighborhood the stock had visited the year before.

4. The article said that K12 was the closest comparable company to Rosetta Stone. Rosetta Stone is marketable to a larger consumer base than K12, so I think that it should be able to charge a higher IPO. The case said that book was more than 25 times oversubscribed during its road show which means Rosetta Stone could charge a much higher price. But these subscriptions are volatile and the economy is recovering, so a price too high could deter many investors. For my analysis I took the EBITDA margin for years 2006-2008 and found the average increase during that time to be 9.93%. I then took the estimated share value from 2008 and multiplied it by 1.0993 to factor in the average increase in share value. This resulted in a price of $19.22. Given this number I would increase the current range from $15-17 to $19-24. The reason for the increased range is because of the

The $55 value is on the lower range of the analyst eztimates, with a best guess estimate of $67.94. Since the value of the stock had been below $45 for 4 months, the offer of 55 dollars represented a 29% premium to investors. Bollenbach knew that management would be resistant of any attempt to be acquired, regardless of price, because of failed previous attempts to negotiate a friendly merger at year end 1996. The 55-dollar benchmark created an expectation for ITT management to achieve that level, or higher and the premium is enough to demonstrate to investors it is a real offer. Their support will be key as they will have a

ITT’s value has changed a lot over the recent events. Prior to any offer when ITT’s stock was trading at 43 dollars, the stand-alone value of its equity was 16.4 billion dollars. With the 55-dollar offer to ITT, the company’s value went up to approximately 21 billion. After the offer, the stock was trading at $63.50, which gave the total equity a value of 24.2 billion dollars.

the closing price on the security’s initial trading day. If the average investor does not sell at the

The current enterprise value is $41,335 million and the equity value is $34,455 million. According to yahoo finance, the shares outstanding of our company are 647.31 million, so we can calculate the stock price for next year is $53.23. It will increase in following years.

That the share price has been so volatile is a measure of the risk in instigating an IPO in relatively uncharted waters.

Since the IPO the stock have had a generally speaking stable trend. According to Yahoo! Finance, the stock have grown +8.41% points since December 9th, 2011 until the market was closed on Friday December 7th, 2012. Daily the stock is raging from 16.91 to 17.19 per share, and in a 52 week range from 13.90 to 24.75. The following image is showing

The highest value per stock under my ownership is $64.74 per a share on January 17th, 2014. The lowest value per a stock is $30.30 as of May 24th, 2014.