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Ferrari The 2015 Initial Public Offering Case Solution
| Solution Id | Length | Case Author | Case Publisher |
|---|---|---|---|
| 2285 | 377 Words (4 Pages) | Michael J. Schill, Jenny Craddock | Darden School of Business : UV7259 |
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In order to find the value of the Ferrari business, the benchmarking should be done with the auto manufacturer since valuation will be more appropriate if the comparison is within the same business. The benefit of valuation with auto manufacturer will give a relevant valuation in the same industry sector.
Case Study Questions Answers
However, since Ferrari is considered a luxury brand thereby a comparison with non-luxury auto manufactures may not provide the true basic for brand valuation. Benchmarking with luxury brands may be able to incorporate the factor of “exclusivity” while ignoring many factors specific for the auto industry.
2.
|
|
Enterprise value |
EBITDA multiple |
|
Auto Manufacturers |
|
|
|
BMW |
126,380 |
7.69 |
|
Daimler |
149,052 |
8.05 |
|
Fiat Chrysler |
28,780 |
3.48 |
|
Ford Motor |
125,666 |
14.72 |
|
General Motors |
60,873 |
9.12 |
|
Honda Motor |
92,185 |
7.24 |
|
Hyundai Motor |
54,885 |
7.59 |
|
Kia Motors |
15,009 |
5.36 |
|
Nissan Motor |
85,110 |
7.82 |
|
Peugeot |
23,623 |
7.12 |
|
Renault |
45,346 |
11.43 |
|
Tata Motors |
20,528 |
3.64 |
|
Tesla Motors |
26,862 |
3,114.03 |
|
Toyota Motor |
292,916 |
9.68 |
|
Volkswagen |
157,794 |
6.85 |
3.
|
Average multiple excluding Tesla |
7.84 |
|
EBITDA of Ferrari (2014) |
678 |
|
EV |
5,320.51 |
|
Total debt |
510 |
|
cash |
1,077 |
|
Value of equity |
5,887.11 |
|
Shares outstanding |
189 |
|
Value per share |
31.15 |
|
|
|
|
Exchange Rate (USD/EUR) |
1.1375 |
|
share price (Euro) |
27.38 |
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