Ferrari: The 2015 Initial Public Offering

20 Pages Posted: 30 May 2017

See all articles by Michael J. Schill

Michael J. Schill

University of Virginia - Darden School of Business

Jenny Craddock

University of Virginia - Darden School of Business

Date Written: April 14, 2017

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. 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.

Excerpt

UVA-F-1775

Rev. Apr. 14, 2017

Ferrari: The 2015 Initial Public Offering

The Ferrari is a dream—people dream of owning this special vehicle, and for most people it will remain a dream apart from those lucky few.

-Enzo Ferrari,

Founder, Ferrari

. . .

Keywords: firm valuation, market-multiples, discounted cash flow, IPO

Suggested Citation

Schill, Michael J. and Craddock, Jenny, Ferrari: The 2015 Initial Public Offering (April 14, 2017). Available at SSRN: https://ssrn.com/abstract=2974599 or http://dx.doi.org/10.2139/ssrn.2974599

Michael J. Schill (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4071 (Phone)
434-243-7676 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/schill.htm

Jenny Craddock

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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