👉 The "going math" refers to a set of mathematical relationships that hold true for a group of stocks or securities that have recently gone public, typically within the past 12 months. These relationships are derived from fundamental valuation models and market data, showing that the price ratios (like P/E, P/B, or EV/EBITDA) of these companies are generally consistent with those of more established firms. This consistency suggests that the going rates for these new companies are reasonable and not overly optimistic or pessimistic. Investors use going math as a tool to identify undervalued stocks, betting that these companies will eventually reach their fair value as they mature and their fundamentals improve. However, it's important to note that going math is not foolproof and should be used in conjunction with other forms of analysis.
