Now that Fiat-Chrysler has announced the intention of separating itself from 90 percent of its Ferrari shares, the next big question is how much will it make from the sale?
Sergio Marchionne says the number could be as high as €12 ($15) billion, but industry specialists are not convinced and project values equating to around half that.
Marchionne backs his optimistic claims saying that the company’s value should be calculated using the same formula used for luxury goods companies, according to Automotive News.
Apparently, that can be obtained by multiplying the annual revenue before taxes by 9 to 12 times. Ferrari managed to bank €650 ($813) million last year, so based on that, the source says the actual value could be anywhere between €5.85 to €7.8 ($7.25 – $9.7) billion.
Marchionne used the same logic when he came up with the €12 billion figure, but he used €1 billion as the yearly EBITDA (earnings before interest, taxes, depreciation and amortization). Ferrari will probably reach it in some years’ time, but it’s not there yet, so therefor not worth what Marchionne says it is.
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