Ferrari is worth as much as 12 billion euros, says Sergio Marchionne

Article by Christian A., on November 3, 2014

According to Ferrari’s new chairman Sergio Marchionne, the Italian Prancing Horse is worth as much as 12 billion euros. However, other people think that Ferrari isn’t worth that much and that 5 billion euros is the proper number. Still, Sergio Marchionne says that Ferrari’s value should be calculated with the same formula used for luxury goods companies.

For those who don’t know, the formula used for luxury goods companies is nine to 12 times earnings before interest, taxes, depreciation and amortization (EBIDTA). Using the formula for Ferrari’s 65- million euro EBIDTA for 2013, Ferrari is worth between 5.85 billion and 7.8 billion euros.

In order to obtain 12 billion euros, Marchionne forsees company’s EBIDTA to 1 billion euros. The bad news is that Sergio Marchionne is the only person who says that Ferrari has a value of 12 billion euros.

For example, Barclay Research’s Christina Church says that Ferrari should be considered half luxury carmaker and half luxury goods maker, which results in a value of 8.7 billion euros.

Banca Akros’s Gabriele Gambarova says that Ferrari has a value of 7.2 billion euros while Mediobanca’s Massimo Vecchio believes the value is 8.6 bllion euros.

As you may know already, last week Fiat Chrysler announced that it will spin off 90 percent stake in Ferrari and that it will sell to the public the rest of 10 percent. [source: automotive news - sub. required]

If you liked the article, share on:

Comments

Recommended

In 2014, Jaguar Land Rover’s Special Vehicle Operations revealed the F-Type Project 7. At that time, it was said to be the fastest accelerating road car carrying a 5.0-liter Supercharged...
by - May 29, 2017
There is an ongoing rumor going around the automotive community, and it’s aimed at BMW. The rumor? The German marque has reportedly axed the i5 Electric vehicle concept. These supposed...
by - May 29, 2017
Volkswagen's yearly Worthersee affair that happens in Austria is considered a hotbed for all types of cars from the German company's long and renowned history. Most of the gathering features...
by - May 29, 2017
Behold, the Rolls-Royce Sweptail! The Sweptail is probably the biggest two-seater car that has ever been built. It may look odd at first glance, and you may not be fond...
by - May 29, 2017
BMW just keeps on getting bigger and bigger, in terms of their lineup I mean. Just after unveiling the 8 Series Concept, they are now teasing us with an M8...
by - May 29, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries