What are key performance indicator?

Key Performance Indicators (KPIs) in an IPO are specific financial or operational metrics that help investors evaluate the company’s performance, financial strength, and growth potential before deciding whether to invest in its public offering.

Following are some of the main KPIs, investors should check before subscribing to an IPO:

• Return on Equity (ROE)
• Return on Capital Employed (ROCE)
• Earnings Per Share (EPS)
• Profit After Tax (PAT) Margin
• Price-to-Earnings (P/E) Ratio
• Price-to-Book (P/B) Ratio
• Revenue and Profit Growth Trends
• Debt-to-Equity Ratio
• Cash Flow from Operations