"normal" in the last 10-15 years -- yes. That doesn't mean it's a good deal. The "recent" idea has been to project growth (rather than profit) as the primary me

"normal" in the last 10-15 years -- yes. That doesn't mean it's a good deal. The "recent" idea has been to project growth (rather than profit) as the primary metric, with the idea that eventually when "dominant" in the sector the money that goes into growth will multiply profitability. I don't subscribe by this method. Another thing to keep in mind is that IPOs are usually done for 1 of 3 reasons: 1) To allow an exit for investors This means that you have to think you know more than their current investors do about their growth -- unless the investors have other specific timelines (sometimes they do), or else you're buying what someone else thinks is no longer a good use of capital. 2) To raise money This means the company needs more cash, either for "growth" or because they will fail without it. Again, you should be certain that this company-in-need deserves more money. 3) To create a sense of "official-ness". Some companies can be better respected in their industry and helps with their brand if they're public. It's been reported that public CEOs often spend about 50% of their time working on matters that relate to simply being public. It's one of the reasons that Warren Buffett will sometimes take companies private after buying public ones -- to afford them more time and energy to work on the actual company. There's very little about going public that actually makes a company better.