| Drew | Sunday, June 10, 2012 - 04:05 am 
Right now it is. I seem to run into the P/E ratio is too low in my enterprise, but I never have a problem in my country.
So ummm.... the P/E ratio is share Price/Earning per share. Share price is your profitability. Enterprises can pull more revenue but if the corp is profitable they also pay country resources. That extra revenue for many doesn't matter if building in their own country, and so its a good thing. BUT it still makes it harder for them to go public, especially since the working conditions are dependant on the country AND the president. So it comes down to this the CEO has to be able to generate a faster stream of profits than countries. That seems a little off. I have a corp that cruising into the 400's now and every month I've tried to IPO it and it's just failing every time. I think I know of a couple of manipulations I can try but I don't think I should have to.
This is just to the best of my knowledge it seems as simcountry doesn't like to release the math for us. Which is probably good as it makes it more even for those that don't play as much. So I could be wrong, I know my countries have fantastic welfare so... Anyways the suggestion can be open ended fix this problem by _____. Because you really can't take CRP out of P/E for investment purposes. So maybe just mod the rules or something for Enterprise corps. Because as continously plastered CEO's can get higher quality because they are owned and invested in by multiple people. I disagree that that should be true but if it is the case it definately shouldn't be more difficult to launch an IPO. |
| Drew | Sunday, June 10, 2012 - 04:08 am
not faster stream of profits, faster stream of revenues. Sorry I mistyped. That part is pretty important also as enterprises that have long term growth in profits yet not that big would be having my BL Computers IPO launch problem. |
| Andy | Sunday, June 10, 2012 - 10:55 am
Drew,
PE value too low? You probably mean it is higher in the enterprise than in the country and IPO is harder.
I just explained the problem with IPOs on the other IPO discussion. I think it will be solved when PE values decline even more.
I don't think there should be a difference in conditions for IPO between countries and enterprises. Investment funds don't care and will buy the shares that seem to offer the most potential for profit.
I do think we need to publish data on the markets. It will make it more interesting and allow more in depth analysis and more potential for profits.
The profitability of corporations is an entirely different issue although it has an influence on PE values.
By design, enterprise corporations are more profitable for the countries where they reside.
Presidents who understand this, try to get them into their countries. The most profitable countries in Simcountry have many private and public corporations.
To repair their finances that are suffering from this contribution to the country, enterprise corporations have reduced fixed cost and maintenance. we can say they are better managed.
Also by design, if you have two identical corporations, one enterprise owned and the other state owned, the enterprise owned corporation will have a higher market value. This is bonus to the CEO.
However, with the same profit and a higher market value, PE values are then also higher. This can confirm your observation. |
| Drew | Sunday, June 10, 2012 - 05:33 pm
Thank you, Andy |
