It hasn’t been a fantastic year for unicorns. It might be an even worse one for WeWork.

Unicorns is the term utilized for start-ups with personal evaluations north of $1 billion. A few of the most extremely valued amongst them– Lyft, Uber, and Slack— have actually all gone public in current months, just to see their stocks fall quickly afterwards and mostly remain listed below their preliminary rates.

The next jumbo-sized unicorn in line to go public is WeWork. And its post-IPO stock efficiency might be even worse than its predecessors– presuming it’s even able to go public at all, stated Scott Galloway, a teacher of marketing at New york city University and previous start-up creator.

“This may be the very first unicorn that does not go out,” Galloway stated.

Simply put, need for WeWork’s shares may be so warm amongst the institutional financiers who in fact take the very first stakes in business throughout an IPO, that the business– or its lenders– may choose to not go public after all. Presuming need is that weak, that might be its only alternative aside from to accept an enormously marked down market capitalization in the general public markets reasonably to its $47 billion personal appraisal.

WeWork’s service and stock offering have great deals of issues, stated Galloway, who recently composed a scathing review of the business’s proposed offering entitled “ WeWTF” The coworking giant has $47 billion in long-lasting lease responsibilities, however will just take in around $3 billion in earnings this year. It’s burning money and seeing its losses grow bigger even as its earnings boosts. It’s attempting to masquerade as a high-profitability tech service, when it’s actually simply a real-estate company, with much greater costs. And its business governance and specific deals by CEO Adam Neumann raise numerous warnings, he stated.

Read this: NYU teacher calls WeWork ‘WeWTF,’ states any Wall Street expert who thinks it deserves over $10 billion is ‘lying, foolish, or both’

However amongst the most significant issues dealing with WeWork’s offering is its appraisal, Galloway stated. The business was valued at $47 billion since the close of its last financing round in January. Offered its service design, its substantial responsibilities, and all the other difficulties and warnings it deals with, the business isn’t reasonably worth anywhere near that, Galloway argues.

WeWork’s jumbo-sized personal appraisal is a substantial issue

Experts may be able to make the case that WeWork may become worth $10 billion, however today, Galloway stated, “it is really challenging to discover, in my view, any argument that this thing deserves more than $5 billion.”

That suggests that if WeWork winds up going public at anywhere near its last personal appraisal, it might be in for a high fall, he stated. While Uber and Lyft have actually dropped from their IPO rates and Snap lost enormous quantity of worth after it went public, their worth damage might fade beside WeWork’s. Presuming that WeWork went out with an appraisal of around $47 billion, it might lose $40 billion in worth, Galloway stated.

“You’re visiting a damage in worth here on a gross level that might be extraordinary in the market … in current memory,” he stated. “You have not seen that sort of worth damage,” he continued, “considering that … the dot-com damage” of the early 2000 s.

To be sure, WeWork has actually not yet defined the appraisal it will look for when it offers shares in its IPO. It’s possible that WeWork might note at a lower appraisal than the $47 billion it commanded in its last personal market financing, though that would be a relatively uncommon relocation that the majority of business attempt to prevent.

If WeWork does attempt to IPO at a $47 billion appraisal, Galloway isn’t the only one who believes it will have a bumpy ride persuading financiers it deserves that much.

That appraisal is almost 26 times higher than its sales for in 2015. That’s much higher than the price-to-sales worths of Lyft or Uber when they went public, kept in mind Daniel Morgan, a long time tech financier and a senior portfolio supervisor at Synovus Trust. And the bad post-IPO efficiency of those once-high-flying unicorns has likely left a bad taste in the mouths of financiers, Morgan stated.

“They’re absolutely extending the bar on appraisal,” Morgan stated of WeWork. “They’re most likely going be consulted with some hesitation here in the next couple weeks,” he continued, “when they begin pitching their items” to prospective financiers.

Got a pointer about WeWork or another business? Contact this press reporter by means of e-mail at twolverton@businessinsider.com, message him on Twitter @troywolv, or send him a safe and secure message through Signal at 415.5155594 You can likewise contact Company Expert firmly by means of SecureDrop