One-glance verdict
Overvalued
$278.48 our estimate vs market $388.33
Wall Street consensus: $459.93 (65.2% higher than our fair-value estimate)
39% above our estimate, beyond the bull case
Fundamentals snapshot
Ferrari N.V.
RACE · NYQ · Consumer Cyclical · Auto Manufacturers
Current price
$388.33
52-week range
$312.51 - $503.78
Market cap
$68.14B
Balance sheet
Watch
50.94x Strong cushion
Net debt $1.95B. 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 selling a small number of very expensive, high-performance sports cars to an exclusive list of wealthy clients. Beyond the cars themselves, the company also profits from its world-famous brand through merchandise licensing, theme parks, and by providing high-priced parts and services to existing owners. This business model creates very high profit margins (the percentage of each sales dollar the company gets to keep as profit) and an intensely loyal customer base.
How the company got here
Founded by Enzo Ferrari in 1947, the company initially focused on race cars, quickly gaining fame on the track. This racing heritage is still a core part of its identity and a major reason for its strong brand image. A key turning point was the decision to start selling road cars to the public, which funded its racing ambitions. Over the years, Ferrari became a symbol of Italian design, luxury, and high performance. In 2015, it was spun off from its longtime parent company, Fiat Chrysler, and became a publicly traded company on its own.
What it actually does
Ferrari designs and manufactures some of the world's most sought-after luxury performance sports cars. You would recognize their cars by their distinctive 'prancing horse' logo and classic red color, although they come in many others. Beyond the cars themselves, the company sells a lifestyle, offering everything from branded clothing and accessories to operating theme parks and museums. They are also a major name in motorsports, especially Formula 1, which is a business in itself and a powerful marketing tool.
Cars and Spare Parts
This is Ferrari's main business, making up the vast majority of its revenue (the money it brings in from sales). The company sells a range of very expensive sports cars, often with long waiting lists, which helps maintain their exclusive appeal. Customers can also personalize their cars with high-priced options, which adds significantly to the profit on each vehicle. This segment also includes the sale of replacement parts to service and maintain the cars, which provides a steady stream of income.
Sponsorship, Commercial and Brand
This part of the business leverages Ferrari's famous brand name and its successful Formula 1 racing team. It generates revenue from sponsorships with other companies who want to be associated with the Ferrari image. It also includes income from licensing the Ferrari brand for a wide variety of products, like watches, clothing, and even theme parks in places like Abu Dhabi. While smaller than car sales, this is a profitable segment that helps build the brand's global recognition.
Engines
Ferrari has a long history of producing high-performance engines and sometimes supplies them to other car manufacturers. This business line generates a smaller portion of the company's overall revenue. For example, in the past, they have provided engines for other luxury car brands. This segment also includes the sale of engines for use in motorsports outside of Ferrari's own teams.
What management is betting on now
Ferrari's strategy focuses on maintaining exclusivity by limiting the number of cars it produces, which keeps demand and prices high. The company is also investing heavily in new technology, including hybrid and fully electric models, with its first all-electric car planned for the near future. They are expanding their personalization programs, allowing customers to create unique cars, which increases profitability (the amount of profit a company makes). Management is also focused on growing the brand's lifestyle offerings and continuing its legacy in racing to keep the Ferrari legend alive.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $278.48 vs current price $388.33
Wall Street consensus is the average analyst price target: $459.93 (65.2% higher than our fair-value estimate).
Our most-likely fair value is $278.48 a share — about 28.3% below today's price of $388.33, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Watch
Net debt $2.0B. Interest coverage 50.9x.
Net debt
$1.95B
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 $3.56B Interest coverage 50.94x This is the baseline the peer rows are being compared against.
Total debt $7.78B Interest coverage 8.65x -83% vs RACE Carries about 5.9x less debt cushion than RACE.
Total debt $115.09B Interest coverage 12.24x -76% vs RACE Carries about 4.2x less debt cushion than RACE.
Total debt $2.20B 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)
36.77x
Forward P/E
31.25x
P/B
16.11x
P/S
9.27x
EV/EBITDA
28.36x
PEG ratio
3.33x
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
$3.56B
Total cash
$1.61B
Growth
How the business has been compounding
Revenue TTM
$8.28B
Revenue 5Y CAGR
11.9%
EPS TTM
10.56
EPS 5Y CAGR
20.7%
Cash flow
How much cash the business throws off
Operating CF TTM
$2.64B
Free CF TTM
$1.58B
FCF margin
19.1%
Dividend
Shareholder payout
Yield
1.1%
Payout ratio
39.0%
Last ex-div date
2026-04-21