Ferrari: I'm Waiting For A Better Valuation

Ferrari N.V. (RACE) Stock

Summary

• Nearly 90% of Ferrari's revenue comes from cars, but it also sells fashion, merchandise, and experiences. By 2026, it aims for 60% of vehicle sales to be hybrid or electric.

• Ferrari's 5-year average free cash flow growth is 23.20%, higher than LVMH's but lower than Tesla's. Its equity-to-asset ratio of 0.38 is tolerable due to strong profitability and branding.

• Ferrari is richly valued compared to other automakers but is justified against