First of all, investors will analyze the P/E ratio of listed companies in this industry in recent years according to the industry in which the target company is located. Due to the profitability of Pre-IPO funds, with reference to the listing price, it is usually reduced on the basis of this P/E ratio. The bid of domestic Pre-IPO funds is reduced by about 30%, and the average standard is about 6 times P/E ratio. At present, the situation in Hong Kong and Singapore is about 50% off the listing price. If the P/E ratio of listing is 8, the P/E ratio of private financing is 4; Strong investors will raise the price of listed companies and make up for the loss of private equity discount.

Then, according to the net assets and cash flow of the target enterprise, a valuation interval is determined for the investment price of the enterprise respectively; After that, investors will determine a suggested bid according to these three main indicators and other pricing factors that affect PRE-IPO private financing, including the company's development stage, investors' return requirements, equity ratio, capital cycle, private financing costs, agency fees, commissions, etc.

Finally, based on this suggested price, Pre-IPO investors will negotiate with the target enterprise, adjust the human resources level, operating conditions and accounts receivable scale of the enterprise, and determine a final Pre-IPO entry price.