Porsche will raise €9.4bn and be valued at more than €75bn

Shares in Ferrari, the high-end marque that went public in 2015, trade at 30 times its projected earnings, while the trio of luxury fashion houses LVMH, Hermes and Christian Dior all trade between 20 to 40 times

By contrast, if Porsche sells shares in the middle of its range, investors will be paying roughly 15 times the carmaker’s projected earnings  

The discount to Ferrari partly reflects one unavoidable fact: there are simply too many Porsches, stripping the carmaker of the scarcity premium central to the definition of luxury.

One sales pitch being made to investors is that Porsche offers “luxury with scale”, something a banker familiar with the IPO acknowledges is an oxymoron / a combination of contradictory or incongruous words (such as cruel kindness)/.

FT 27 September 2022

https://www.ft.com/content/f04f887c-fdaa-45bd-8e0b-0e517eb54cc0