Freshly appointed as president, Sergio Marchionne says Ferrari is worth as much as €12 billion on the open market.

Freshly appointed as president, Sergio Marchionne says Ferrari is worth as much as €12 billion on the open market.

Marchionne disclosed last week plans to spin off Ferrari, a company which according to his estimations is worth somewhere in the region of €12 billion, but industry analysts say the number is an exaggeration and the prancing horse is worth significantly less. Luca Ciferri, an editor at Automotive News says that in reality Ferrari is worth approximately €5 billion. He reached this number by multiplying by two the €2.33 billion revenue, a formula regularly used to find out the value of a luxury automaker.

Stuart Pearson from investment company Exane Paribas says Ferrari is valued at €5.5 billion while Barclays Research's Christina Church says it's worth €8.7 billion. Other estimations come from Banca Akros's Gabriele Gambarova (€7.2 billion) and Mediobanca's Massimo Vecchio (between €7.1 billion and €8.6 billion).

According to Sergio Marchionne, Ferrari's value should be calculated by using the same formula as luxury goods companies which consists of multiplying by 9 to 12 times the EBITDA (earnings before interest, taxes, depreciation and amortization). Last year, Ferrari posted an EBITDA of €650 million which would mean the company is worth between €5.85 billion and €7.8 billion, but according to Marchionne's forecast Ferrari's EBITDA will eventually surpass €1 billion and as a consequence the market value will increase to €9-12 billion.

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