Aston Martin throttles back IPO range Aston Martin throttles back IPO range Aston Martin throttles back IPO range

Aston Martin throttles back IPO range

Equities 4 minutes to read

Summary:  Aston Martin has cut its IPO range from £17.50-£22.50 per share to a new marketed range of £18.50-£20.00/share.

Aston Martin has narrowed its turbocharged IPO range from £17.50-£22.50 per share, scaling back the upper end by 11%, to a new marketed range of £18.50-£20.00, giving a valuation range between £4.20 billion to £4.54bn. The IPO is set to price toward the bottom end of that range at £19.00 per share, giving the luxury carmaker a valuation of £4.31bn.

The final price will be announced Wednesday morning in London, when Aston Martin will become the first British automaker to list on the London Stock Exchange since the 1980s.

Aston Martin builds its growth case on the expanding population of high net-worth individuals and their desire to own high-end luxury vehicles. Being such an iconic and prestigious luxury brand, an investment in Aston Martin might seem appealing and there is a lot to like, but as with all of James Bond’s cars its is important to look under the bonnet as they are always more than meets the eye. 

Despite producing highly desirable luxury cars, the company has a long history of financial trouble and has been bankrupt seven times since its incorporation in 1913. However, since 2014 under the leadership of CEO Andy Palmer, the company has swiftly returned to profit for the first time since 2010 and has emerged the fastest growing automotive brand of 2018 and fastest growing UK brand according to valuation consultancy firm Brand Finance. 

The turnaround strategy has renewed confidence in Aston Martin, not only as a prestigious heritage brand with beautiful cars, but as a profitable manufacturer of high-end luxury vehicles. 

Ferrari and Aston Martin both garner a valuation that is closer to luxury goods companies rather than automakers. An IPO price of £19.00 per share, valuing the company at £4.31bn, values the company at 16.6x expected EBITDA for 2018 assuming targets are met, bringing the valuation in line relative to Ferrari (whose margins are stronger and generates more cash flow with a more robust balance sheet). The valuation represents a 20% discount to Ferrari, which trades on a forward EV/EBITDA multiple of 20.9x.

However, this does not account for Aston Martin’s “secret agent”: an above-average R&D capitalisation rate which would push this multiple higher if the capitalisation rate were less. it is worth noting that under US Generally Accepted Accounting Principles (GAAP) accounting standards, Aston Martin would have reported another full-year loss in 2017 as opposed to the first profit since 2010

Although both automakers have claimed a luxury valuation multiple, this has not deterred investors given Ferrari has rallied 170% since listing. Can Aston Martin do the same? 

Based on the fundamentals, while a £4.31bn valuation seems excessive, the opportunity to gain exposure to one of the last remaining all-British car brands is certainly rare. 

The brand's cult status is engrained in pop culture through the iconic combination of Aston Martin and James Bond’s love affair with the brand, the ultimate image of British style and elegance coupled with a beautiful high-performance car. As hard as it is to imagine James Bond in any other car, it is equally as hard to for Aston’s IPO to not be in a league of its own.

Valuation might go out the window and Aston may have a license to kill when investors consider the proposition to own a slice of an iconic brand that is synonymous with luxury and elegance. Watch out critics: Bond villains are typically vanquished!


The Saxo Group entities each provide execution-only service, and access to analysis permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Inspiration Disclaimer and (v) Notices applying to Trade Inspiration, Saxo News & Research and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Group by which access to Saxo News & Research is gained. Such content is therefore provided as no more than information. In particular, no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on Saxo News & Research or as a result of the use of the Saxo News & Research. Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. Saxo News & Research does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Group and should not be construed as a record of our trading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws.

Please read our disclaimers:
Notification on Non-Independent Investment Research (
Full disclaimer (

None of the information contained here constitutes an offer to purchase or sell a financial instrument, or to make any investments. Saxo Markets does not take into account your personal investment objectives or financial situation and makes no representation and assumes no liability as to the accuracy or completeness of the information nor for any loss arising from any investment made in reliance of this presentation. Any opinions made are subject to change and may be personal to the author. These may not necessarily reflect the opinion of Saxo Markets or its affiliates.

Saxo Markets
88 Market Street
CapitaSpring #31-01
Singapore 048948

Contact Saxo

Select region


Saxo Capital Markets Pte Ltd ('Saxo Markets') is a company authorised and regulated by the Monetary Authority of Singapore (MAS) [Co. Reg. No.: 200601141M ] and is a wholly owned subsidiary of Saxo Bank A/S, headquartered in Denmark. Please refer to our General Business Terms & Risk Warning to consider whether acquiring or continuing to hold financial products is suitable for you, prior to opening an account and investing in a financial product.

Trading in financial instruments carries various risks, and is not suitable for all investors. Please seek expert advice, and always ensure that you fully understand these risks before trading. Trading in leveraged products such as Margin FX products may result in your losses exceeding your initial deposits. Saxo Markets does not provide financial advice, any information available on this website is ‘general’ in nature and for informational purposes only. Saxo Markets does not take into account an individual’s needs, objectives or financial situation.

The Saxo trading platform has received numerous awards and recognition. For details of these awards and information on awards visit

The information or the products and services referred to on this website may be accessed worldwide, however is only intended for distribution to and use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. Products and Services offered on this website are not intended for residents of the United States, Malaysia and Japan. Please click here to view our full disclaimer.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Apple and the Apple logo are trademarks of Apple Inc, registered in the US and other countries and regions. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.