Ferrari Isn't As Expensive As You Think (The Car Still Is)

Jun. 11, 2025 9:18 AM ETFerrari N.V. (RACE) StockCOST, COST:CA, RACE
Kenio Fontes
Investing Group
(9min)

Summary

  • Ferrari’s fundamentals are closer to quality compounders than traditional automakers.
  • Despite high multiples, its valuation isn’t as extreme when profitability is factored in.
  • Predictable growth and high margins support a premium, but returns remain limited.
  • Even with solid execution, the stock offers low implied returns (~6%, ~7%) and limited upside.

Ferrari 488 Spider sports car dashboard

Sjo/iStock Unreleased via Getty Images

Ferrari (NYSE:RACE) is a company that attracts a lot of attention. It is difficult to think of a brand as strong as it is to compare it to, and if there is one, it is certainly

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This article was written by

Kenio Fontes
786 Followers

Equity Research Analyst with a broad career in the financial market, covered both Brazilian and global stocks. As a value investor, my analysis is primarily fundamental, focusing on identifying undervalued stocks with growth potential. Feel free to reach out for collaborations or to connect! Associated with Sungarden Investment Research.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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