Briefly describe three common pricing methods when issuing stocks?

There are three common pricing methods for stock issuance:

1, P/E ratio method. The calculation formula for determining the stock issue price by P/E ratio method is: issue price = net income per share x P/E ratio.

2. Net assets ratio method. Issue price = net asset value per share x premium multiple.

3. Cash flow discount method. By predicting the company's future profitability, calculating the company's net cash flow value, and converting the future cash flow at a certain discount rate, the stock issue price is determined.

Because financial institutions generally have abundant funds, they can advance in advance to meet the needs of listed companies for a large amount of funds, and listed companies are generally willing to transfer their newly issued shares to brokers for underwriting. If the number of shares issued by listed companies is too large, it is difficult for a securities company to underwrite, and several securities companies can jointly underwrite.

Extended information listed companies often consider the following factors when choosing the timing of stock listing:

(1) Be optimistic about the stock market when preparing and in the foreseeable future.

(2) We should fully pave the way for the business in the coming year, so that the public can generally predict that the listing of enterprises next year will be better than this year; Don't go public when the company has reached its peak and there is no big development and change in the future, or give the public the impression of a growing company.

(3) The company's internal management system, dividend system and employee internal distribution system have been determined, and the future development policy has been defined before listing, which will give the exchange and the public a sense of stability. Otherwise, the changes after listing will not only affect the stock market, but also cause serious suspension of listing.

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