Financial Tools

IPO Valuation Calculator

Analyze IPO pricing using P/S ratio. Calculate fair value range from prospectus data.

IPO Price (HK$)

Total Shares (millions)

NAV per Share (HK$)

Revenue (RMB millions)

Prior Year Revenue (RMB millions)

Gross Profit

Net Profit

Sector

P/S Ratio

Industry benchmark: 12–18x

Undervalued — Upside potential

Fair Price Range

— – —

P/B

—

Market Cap

HK$0B

What Is the IPO Valuation Calculator?

IPO investing is popular among Hong Kong retail investors, but how do you judge whether an IPO is priced fairly? The IPO Valuation Calculator uses the P/S (Price-to-Sales) ratio to assess whether an IPO is reasonably valued. Enter financial data from the prospectus — IPO price, total shares, revenue, NAV, and sector — and the calculator shows the P/S ratio, industry benchmark comparison, fair price range, and a green/yellow/red valuation signal so you can make data-driven decisions instead of relying on gut feeling.

Key Concepts

Why P/S Instead of P/E?

Many IPO companies are not yet profitable (or have very low earnings), making P/E meaningless. P/S (Price-to-Sales) uses revenue as the denominator, so even loss-making companies can be valued. High-growth sectors like tech, biotech, and SaaS are particularly well-suited to P/S valuation.

How to Choose the Right Industry Benchmark

Reasonable P/S ranges vary widely by sector: AI/tech companies typically trade at 12–18x, consumer goods at 1.5–4x, and biotech can reach 8–18x. Choosing the wrong industry benchmark will throw off your entire valuation, so match the company's primary business to the closest sector.

A+H Dual Listings

If a company is listed on both mainland China's A-share market and Hong Kong's H-share market (e.g. BYD, SMIC), you need to combine the market caps of both listings. Our calculator automatically detects A+H companies and uses a blended approach to calculate total market cap and fair P/S.

Frequently Asked Questions

What P/S ratio is considered cheap?

There's no absolute number — compare against listed peers in the same industry. If the industry average P/S is 10x and the IPO is priced at 5x, that's relatively cheap. Our calculator automatically performs this comparison and displays a green (undervalued), yellow (fair), or red (overvalued) signal. Generally: P/S below 80% of the industry floor = undervalued (green); within ±20% of industry range = fair (yellow); above 120% of industry ceiling = overvalued (red).

Do IPOs always rise on day one?

Not necessarily. Historically, about 60–65% of IPOs close above their offer price on day one, but 35–40% 'break' (fall below the offer price). Overvalued IPOs (red signal) have a significantly higher risk of breaking. Remember: IPO investing is not risk-free — always check valuation and fundamentals.

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⚠️ Note：The above calculations are for reference only and do not constitute financial, investment, or tax advice. Actual outcomes may vary based on individual circumstances, financial institution policies, or regulatory changes. Please consult a licensed professional before making any financial decisions.