Case study: Jaguar plc, 1984

Management Summary The purpose of this case is the valuation of Jaguar plc for its imminent IPO. For this we analyze the market, in which Jaguar operates and its exchange rate risks. The luxury car market analysis delivers the following findings: *Jaguar's clients are rather price insensitive, however they are highly quality aware. *The main competitors at the time being are the German car producers BMW, Daimler-Benz and Porsche *Jaguar exports a large part of …

…valuation range from £430m to £2700m with a most probable value close to £1000m. *The actual firm value of Jaguar is highly dependent on the exchange rate. The economic exposure is very important. *Bringing the IPO to a success, which is one of the goals of the Thatcher government after the disastrous privatization of Enterprise Oil, we recommend a valuation close to the lower end of the range. Therefore we propose a value of £550m.