Valuation issues in company value growth strategies during Initial Public Offerings (IPO)

Subject. This article considers the issue of company valuation in the context of going public focusing on the comparative approach and market multipliers importance. Objectives. The article aims to determine the significance of an IPO as a tool for increasing company value, and to identify key methodological and practical challenges arising from the application of the comparative approach to valuation in the Russian market context. Methods. For the study, I used systems, comparative, and empirical analyses, and statistical methods for data processing. Results. The article clarifies the comparability criteria, proposes applying panel data in cases of limited peers, using average stock prices over a defined period after the financial reporting date, adjusting the valuation approach to account for expected changes in the business model prior to the IPO, summarizing multiplier selection guidelines based on industry and capital structure, and eliminating one-off income and expenses. Conclusions and Relevance. To improve the reliability of the comparative approach, methodological refinement of criteria for selecting comparables and valuation multiples is required. The proposed measures aim to reduce subjectivity, improve transparency and the quality of valuations in the context of IPOs. The research findings are applicable to IPO preparation, valuation and investment analysis practices, as well as the activities of regulators and self-regulatory organizations.