Nasdaq IPO Pulse Index
Nasdaq's new leading indicator for IPO market activity
The new Nasdaq IPO Pulse Index functions as a leading indicator for the IPO Market by forecasting the direction of US IPO activity over the next six months.
IPO activity rises and falls in cycles. You might think it is affected by things like interest rates, the level of economic activity, corporate profits and appetite for finance. But what really drives changes in the IPO market?
This index looks for indicators that show the trend in IPOs before the actual IPO data changes.
To create the index, the Nasdaq Economic Research team backtested over 50 data series to identify six core factors that theoretically and empirically show shifts in IPO activity over the last two or more decades, with few false alarms. Combined, these indicators have proven to consistently lead directional shifts in IPO activity. The six factors are as follows:
Interest Rates:
Year-over-year change in Fed Funds Rate
Market Volatility:
Year-over-year change in the VIX
Recent Returns:
S&P 500 Price Annual Growth
Valuations:
S&P 500 Enterprise Value to Sales Ratio Annual Growth
Investor Sentiment:
The difference between Consumers Expecting Stock Prices to Increase in the next 12 month and decrease in the next 12 months.
Nasdaq's Proprietary IPO Data
What To Know About The IPO Pulse Index, the Leading Indicator That Is Keeping a Pulse On The IPO Market
By combining deep economic research with proprietary data and Nasdaq’s index expertise, the Nasdaq IPO Pulse is expected to bring improved visibility & transparency to the IPO market as a whole.
The index will change as market cycles progress, so expect quarterly updates going forward.
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Disclaimer: The IPO Pulse indicator is provided for educational purposes only and should not be construed as investment advice. Nasdaq does not recommend or endorse any securities offering or investment strategy. Before making any investments you are urged to read the relevant company’s SEC filings, undertake your own due diligence, and carefully evaluate the company. Advice from a securities professional is strongly advised.
Uncover valuable insights into Swedish IPO trends through the newly launched Nasdaq Stockholm IPO Pulse Index (read the press release). The index forecasts the direction of IPO movements in Sweden for the upcoming six months. Developed by the Nasdaq Economic Research team through a thorough analysis of over 50 data series, this index closely follows the methodology of the US IPO Pulse Index, with a couple of notable distinctions.
The data included in the index captures a broad range of factors that contribute to the decision to IPO: