| E O | Thursday, September 17, 2020 - 08:28 pm 
Having a low P/E is extremely difficult for corporations that achieve high values. I have, for example, some corporations that consistently make decent profits and have corporation values of between 500b and 800b that I'm unable to IPO. Their value is too high.
Instead of having to spend days manipulating their value by holding products, lowering productivity, etc. to artificially drop their value, I'd rather see something like (not exactly but this illustrates the proposal):
If value >500b, and profit over 5b/year, then you can IPO. I think the defense against IPO'ing corps that are low value or low profitability makes sense, but why block corporations that are very successful? If they weren't successful, they wouldn't have these enormous corporation values. |
| Andy | Friday, September 18, 2020 - 09:59 am
Can you give me a name of a corporation and the location.
I will have a look.
I can imagine that the P/E ratio could become a problem. |
| E O | Friday, September 18, 2020 - 08:03 pm
Sure! Some examples can be found on LU in my enterprise "Tiki Taka."
Corps:
- Stratford Rubber. Made profit of 22b last game year, but value is over 700b, so P/E is bad
- Pacifica Carbon. Profit over 23b last game year. Value over 700b.
Let me know if you'd like more examples - happy to help. |
| Andy | Friday, September 25, 2020 - 01:40 pm
We are reevaluating the conditions, market value and P/E ratio.
There is a valid point here. |
| E O | Wednesday, December 9, 2020 - 09:37 pm
Since the Nov30th update, it's become much more difficult to IPO corporations. Other changes in that update seem great, but overall, it has impacted the ability to execute IPOs at all.
Would it be possible to counteract this by raising the required P/E to execute an IPO from 40 to 50? Even with a P/E of 50, a corporation needs to be well-run. |
| Andy | Friday, December 11, 2020 - 03:57 pm
I will check the way it is computed and get back here with some answers. |
