Aston Martin Lagonda is making a painful transition from cash-guzzler to viable carmaker. Listed in 2018, the marque famous for its link to James Bond has undergone successive rescues, first by Lawrence Stroll’s Yew Tree consortium, with later injections from Saudi’s Public Investment Fund and Chinese carmaker Geely. A 216 million pound cash call on Monday brings its total capital raised since 2018 to just under 1.8 billion pounds.
The Aston Martin DB11 is seen during the first press day of the Paris auto show, in Paris, France, October 2, 2018. REUTERS/Regis Duvignauis making a painful transition from cash-guzzler to viable carmaker. Listed in 2018, the marque famous for its link to James Bond has undergone successive rescues, first by Lawrence Stroll’s Yew Tree consortium, with later injections from Saudi’s Public Investment Fund and Chinese carmaker Geely. A 216 million poundThe long ordeal may be nearly over.
. And by the end of 2024 it should be generating free cash flow, and have debt of just over 1 times EBITDA, using Refinitiv data. The question remains how to put a price on the company. Aston’s current enterprise value is just under 2 times forecast 2024 sales, a discount to Porsche, and far below Ferrari’s
more than 8 times multiple. It could justify a richer price tag than its current mark, thanks to a suite of new cars and mid-term gross margin target of around 45%. Yet Aston still needs to show it can make an electric vehicle, with the first due in 2025. Its small scale makes it vulnerable if the economy sours, or the switch to battery rides requires even more investment. With the path ahead still tricky, investors may wait before giving it a true luxury multiple.
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