The Lamborghini biopic released in late 2022 has done more than chronicle the brand’s storied history; it has stoked the flames of a potential Lamborghini IPO.
With Porsche’s stunning stock market debut, could the Diablo maker be headed for a similar spin-off?
Find out what parent company Volkswagen has under the hood for Lamborghini’s investment-savvy fans.
Volkswagen first considered floating Lamborghini to the public in 2019. The plan lost steam as the German carmaker got busy with offloading Bugatti to Rimac.
In 2022, Volkswagen asked brands under its wing for virtual equity stories following Porsche’s successful public launch. Lamborghini had a stock pitch ready but later denied any immediate IPO intentions.
These mixed signals have left the financial world on tenterhooks.
Understandably, Volkswagen is exercising caution. After all, it suffered the brunt of investor worries about the subdued market climate while Porsche’s stock performance sailed smoothly.
The Lamborghini share price is currently unavailable since the company has yet to enter the stock market.
The company’s valuation at the time of the listing will dictate the share price, so wait for financial disclosures in the lead-up to the IPO.
Using Ferrari’s EV/EBITDA ratio as a benchmark, Bloomberg analysts projected Lamborghini’s valuation at an astounding €19.7 billion.
Thanks in no small part to Lamborghini’s new hybrid cars and limited editions, its profitability margins could beat Ferrari’s 2022 numbers by almost 14 percentage points.
Lamborghini’s perceived worth shouldn’t come as a surprise. The Italian car manufacturer has been shooting for the stars with its past valuations:
And here’s a quick summary of Lamborghini’s brand value over the past several years:
While not an official requirement, being profitable at an EBITDA level is necessary for any company headed to the stock market. With steady revenue streams, Lamborghini is more than ready to go public; it’s just a matter of timing.
(EV/EBITDA = Enterprise value to earnings before interest, taxes, depreciation, and Amortisation)
Lamborghini has plenty in common with Ferrari, which has consistently outperformed other luxury automakers on the stock market. For instance, Lamborghini operates in the same niche of high-end racing cars as Ferrari.
Because of this exclusivity, Ferrari is navigating the evolving automotive industry effortlessly. Lamborghini could adjust to the shift to battery technology at a similar pace to Ferrari’s, if not faster.
Moreover, Lamborghini remains a coveted brand with substantial demand despite a global energy crunch and supply shortages. The Italian brand delivered 5,000 units in the first half of 2023, and projections hint at reaching 10,000 sales by year-end.
The supercar manufacturer’s order books are full until 2024. The Aventador, on its way to its run-out phase, is sold out. That means the assembly lines at Lamborghini’s Sant’Agata factory could be working nonstop for 18 months.
While awaiting its stock market entry, Lamborghini can fine-tune strategies to persuade investors of the value it can bring to the public market.
The company’s revenue streams and profit margins are already showing promise. Meanwhile, it can explore investment prospects to secure funding for its electrification programs, ensuring it stays on pace with the EV trend.
You can apply to be a part of Lamborghini Funding and own stock in Lamborghini Pre-IPO by visiting ipo-lamborghini.com. You will receive the Pre IPO/Funding Prospectus and all information pertinent to the offer.
Audi acquired Lamborghini in 1998 for $100 million after it made over 200 Diablos the previous year. There was a €7.5 billion offer for Lamborghini by Quantum Group in 2021, but Volkswagen, who has majority shares in Audi, didn’t bite.
The exotic car brand has since charted a financial path built on sound business strategies rather than traditional funding rounds.
Check out the recipe for Lamborghini’s financial success:
Whether the Lamborghini IPO takes the front or the back seat comes down to Volkswagen’s priorities.
With Porsche’s record IPO returns and Ferrari’s almost “recession-proof” stock, Lamborghini is the likeliest candidate to follow similar paths.
The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interest in any Companies discussed on this website/app.
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