One-glance verdict
Overvalued
$323.21 our estimate vs market $413.78
Wall Street consensus: $467.23 (44.6% higher than our fair-value estimate)
28% above our estimate, beyond the bull case
Fundamentals snapshot
Ferrari N.V.
RACE · NYQ · Consumer Cyclical · Auto Manufacturers
Current price
$413.78
52-week range
$312.51 - $504.49
Market cap
$72.68B
Balance sheet
Watch
50.94x Strong cushion
Net debt $2.01B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 7.0% last year.
- Reward Returns 45.4% on equity, ahead of 80% of its peers.
- Reward Free cash flow was positive in 4/10 years.
What this company does
Ferrari N.V.
Ferrari makes most of its money by building and selling exclusive, high-performance sports cars that are famous worldwide. The company also earns significant revenue (the total money brought in from sales) from licensing its brand for merchandise, providing car maintenance, and operating theme parks. This powerful brand is key because it allows Ferrari to charge very high prices for its products and builds deep loyalty with its customers.
How the company got here
Founded by Enzo Ferrari in 1939, the company initially focused on racing. The first car bearing the Ferrari name was built in 1947. For many years, Ferrari's road cars were primarily a way to fund its racing ambitions, which remain a core part of its identity. A major turning point came in 1969 when Fiat took a 50% stake, providing financial stability for growth. In 2015, the company was spun off from Fiat Chrysler and became publicly traded, positioning itself not just as a car maker but as a true luxury goods company.
What it actually does
Ferrari designs and manufactures high-performance luxury sports cars, known for their powerful engines, distinctive design, and the iconic 'Prancing Horse' logo. The company intentionally produces fewer cars than people want to buy, a strategy called scarcity, which keeps its cars exclusive and in high demand. Beyond the cars themselves, Ferrari operates a major Formula 1 racing team and sells a wide range of branded merchandise, from clothing to watches. It also offers financial services to its clients and operates brand experiences like museums and theme parks.
Cars and Spare Parts
This is Ferrari's largest and most important business, making up the vast majority of its revenue. The company sells a range of sports and grand tourer (GT) cars, which are powerful cars designed for long-distance comfort at high speeds. It also creates extremely limited 'Special Series' and 'Icona' models for its most loyal customers. A significant and profitable part of this business comes from personalization, where customers pay extra to customize everything from the paint color to the stitching on the seats, making their car unique.
Sponsorship, Commercial and Brand
This part of the business leverages the power of the Ferrari name and its legendary Formula 1 racing team, Scuderia Ferrari. It generates a significant slice of revenue through sponsorship deals with major global brands that want to be associated with the team. This segment also includes income from licensing the Ferrari brand name and logo to other companies for use on luxury goods, apparel, and toys. Finally, it covers immersive brand experiences like the Ferrari-themed parks in Abu Dhabi and Spain.
Engines
While a smaller part of the company, Ferrari has a history of designing and supplying engines to other car manufacturers. Its most notable recent partnership was supplying engines to the luxury car brand Maserati. This business allows Ferrari to earn revenue from its engineering expertise without increasing the number of its own cars on the road. The supply contract with Maserati expired at the end of 2023, and revenues from any remaining engine sales are now reported in a different segment.
What management is betting on now
Ferrari's strategy focuses on carefully balancing its exclusive heritage with new technology. The company is investing heavily in developing hybrid and fully electric models to meet future regulations, with a goal for its lineup to be 40% hybrid and 20% electric by 2030. However, it has also committed to continuing the development of its famous V6, V8, and V12 internal combustion engines, giving customers a choice. Management is also expanding its high-margin (high-profit) personalization programs, allowing customers to create bespoke cars and further strengthening the brand's luxury status.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $323.21 vs current price $413.78
Wall Street consensus is the average analyst price target: $467.23 (44.6% higher than our fair-value estimate).
Our most-likely fair value is $323.21 a share — about 21.9% below today's price of $413.78, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $2.0B. Interest coverage 50.9x.
Net debt
$2.01B
Interest coverage
50.94x
Ferrari N.V.'s profit covers its interest bill about 50.9 times over. which is stronger than every peer shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Watch
Worse cushion
Baseline
Better cushion
RACE
BASELINE
Ferrari N.V.
Total debt $3.67B Interest coverage 50.94x This is the baseline the peer rows are being compared against.
Total debt $8.01B Interest coverage 8.65x -83% vs RACE Carries about 5.9x less debt cushion than RACE.
Total debt $118.61B Interest coverage 12.24x -76% vs RACE Carries about 4.2x less debt cushion than RACE.
Total debt $2.25B Interest coverage -1.11x -100% vs RACE This peer has almost no interest-payment cushion compared with RACE.
Total debt $16.08B Interest coverage 14.35x -72% vs RACE Carries about 3.6x less debt cushion than RACE.
What you should know
The case for and against RACE
3 Rewards
0 Risks
Rewards
-
Revenue grew 7.0% last year.
-
Returns 45.4% on equity, ahead of 80% of its peers.
-
Free cash flow was positive in 4/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
38.35x
Forward P/E
32.44x
P/B
17.17x
P/S
9.88x
EV/EBITDA
30.17x
PEG ratio
3.48x
Profitability
How much profit each dollar creates
Gross margin
51.6%
Operating margin
31.1%
Net margin
22.2%
ROE
45.4%
ROA
13.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.86x
Current ratio
2.43x
Quick ratio
1.76x
Total debt
$3.67B
Total cash
$1.66B
Growth
How the business has been compounding
Revenue TTM
$8.53B
Revenue 5Y CAGR
11.9%
EPS TTM
10.79
EPS 5Y CAGR
20.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.73B
Free CF TTM
$1.63B
FCF margin
19.1%
Dividend
Shareholder payout
Yield
1.0%
Payout ratio
39.0%
Last ex-div date
2026-04-21