University Of Virginia Ferrari The 2020 Ipo

University of virginia ferrari the 2020 ipo

University of virginia ferrari the 2020 ipo

Abstract

This case examines the October 2015 initial public offering pricing decision for legendary Italian sports car company Ferrari by Fiat Chrysler management. Students are invited to model the value of Ferrari in light of Ferrari CEO Sergio Marchionne's interest in expanding production despite the company's long standing tradition of severely limiting production strategy to maintain an exclusive brand image.

2020 U.S. IPO Candidates

The case is designed to showcase corporate valuation using discounted cash flow and peer-company market multiples for a company that exists in two sectors: automotive and luxury goods.

Topics

Firm valuation; Market-multiples; Discounted cash flow; IPO; Finance; Capital structure; Financial analysis; Financial forecasting