Case | HBS Case Collection | October 1989 (Revised May 1990)

Jaguar plc--1984

by Timothy A. Luehrman and William Schiano

Abstract

A vehicle for analyzing the exposure of operating cash flows to exchange rate changes. Considers the value of Jaguar plc at the time of its privatization and share offering in 1984. Jaguar is a major exporter from the United Kingdom and the United States is therefore exposed to changes in the dollar/sterling exchange rate. Students are asked to estimate the value of the company as a function of expected future exchange rates. Students may also be asked whether and how Jaguar's exposure should be hedged.

Keywords: Change; Cash Flow; Currency Exchange Rate; Risk Management; Privatization; Valuation; Auto Industry; United Kingdom; United States;

Citation:

Luehrman, Timothy A., and William Schiano. "Jaguar plc--1984." Harvard Business School Case 290-005, October 1989. (Revised May 1990.)