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IPO Valuation Calculator

Calculate an implied market capitalization and price per share for an IPO, using a P/E multiple applied to net income and the shares outstanding.

How to Use IPO Valuation Calculator
  1. 1Enter the company's net income
  2. 2Enter the P/E multiple
  3. 3Enter the shares outstanding
  4. 4Click Calculate to see the implied market cap and price per share
Frequently Asked Questions

Implied Market Cap = Net Income × P/E Multiple. Implied Price per Share = Market Cap ÷ Shares Outstanding.

Look at recently-IPO'd or publicly-traded comparable companies in your sector — this tool doesn't recommend a multiple, it computes the result for whatever you enter.

Enter whichever share count matches the market cap you're solving for — typically post-IPO fully-diluted shares outstanding, since that's what determines price per share to public investors.

A P/E-based approach only works with positive net income — pre-profit companies are usually valued on a revenue multiple instead (see Revenue Multiple Calculator or Startup Valuation Calculator).

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