Ferrari: Valuing the Prancing Horse

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Ferrari - the prancing horse - had opened at the top end of its target price range - $52 per share in the U.S. - raising nearly $1 billion for Ferrari's owner, Fiat. Like most IPOs, the share price of RACE (the ticker symbol for Ferrari), settled in the weeks following the launch. But now many analysts and mutual fund managers were all asking the same thing: was Ferrari a promising equity or simply another of the equity eye candy IPOs to hit the market in recent years?
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