Stroll hints at taking Aston Martin private as he calls valuation 'a joke'

Aston Martin's executive chairman Lawrence Stroll has suggested that he might consider taking the luxury carmaker private in the future. This comes amid comments from the Canadian describing the company's current valuation as "severely undervalued."

Stroll's Yew Tree Consortium is set to invest approximately £51.5 million into the company, increasing its ownership to around a third, up from the current 27.7%. This reflects a huge commitment from Stroll, who acquired his first stake in the business back in 2021 with an investment of £182 million, giving him 16.7%.

According to Bloomberg, Stroll didn't hold back when discussing the current valuation of the iconic British marque. 

"The company is severely undervalued and its stock market valuation of around £650 million is a joke," he said. When asked about taking the company private, he didn't close the door to such an idea. "Could it be something for the future? Potentially, yes. Never say never. Is it on my radar screen to do in the next fortnight? No, but never say never."

What does this mean for Aston Martin's future?

This financial maneuvering might seem somewhat disconnected from the racing team and its drivers Fernando Alonso and Lance Stroll. But it is deeply connected to the team's prospects on the grid. With Stroll's increased investment into the road-going company, it plans to sell a minority stake in its F1 team for at least £74 million. 

This doesn't mean a lack of focus or a lapse of commitment. Instead it shows a phase of financial restructuring, with Stroll confident it can attract valuable, active investors who can help propel the team up the grid. 

Actor Javier Bardem and Lawrence Stroll, Owner, Aston Martin F1 Team, on the grid

Photo by: Simon Galloway / Motorsport Images

"Happily with the incoming demand, we could be very picky on who to sell this percentage to," he confirmed.

The team has already attracted investors like the sports-focused private equity firm Arctos Partners, who acquired a minority stake in the team in 2023. This valued the team at approximately £1.8 billion. 

The Adrian Newey factor

Perhaps the most exciting development is Aston Martin's successful recruitment of Adrian Newey, widely regarded as the greatest F1 car designer of the modern era. After 19 years at Red Bull, the motorsport legend has moved to Silverstone to work with the British Racing Green team on its 2026 efforts. 

Responsible for Red Bull's extreme dominance, including their 2023 season where they won 21 out of 22 races, his decision to join Aston Martin shows substantial confidence in the outfit, which has also just invested heavily in a state-of-the-art wind tunnel for him to utilise, as well as the AMR Technology Centre which opened in July of 2023.

Stroll has also attracted Enrico Cardile from Ferrari (who will serve as Chief Technical Officer from 2025) and Andy Cowell, Mercedes' former engine boss, creating a strong team of experienced professionals. 

Stroll is ambitious

Since rescuing Aston Martin in 2020, Stroll has invested more than £600 million in the automaker, which was struggling with debts and low sales. It's clear his passion is what drives him, as let's face it, there are far more profitable investments to be made. Fashion, for example, is where Stroll made a lot of his money. Working with brands such a Ralph Lauren and Tommy Hilfiger gave him the opportunity to make such investments in the automotive industry.

After making a loss in the fourth quarter of last year, Aston Martin cut 170 jobs. But this increased investment aims to improve the look of the unbalanced balance sheet. 

CEO Adrian Hallmark said the following on this good news.

"This renewed backing from Lawrence and his Yew Tree Consortium associates highlights their substantial confidence in our team and the Company's future. By fortifying the balance sheet, this investment grants us additional flexibility to bolster our future product development and business transformation efforts."

For fans of the sport, this would suggest that the team's trajectory is upwards. With Newey's input, Stroll's financial support, and a roster of talented personnel, Aston Martin seems to be positioned to challenge the established powers that be on the grid, regardless of whether the company is public or private.