The automaker is the subject of this essay. See List of Ferrari Road Cars for a list of the road models that Ferrari has made. Scuderia Ferrari is the name of the Formula One team. Ferrari, the 2003 biographical movie (film). Enzo Ferrari is the name of the founder. Ferrari has other uses as well (disambiguation).
In 1969, Fiat S.p.A. purchased 50% of Ferrari, and in 1988, it increased its ownership to 90%. Fiat Chrysler Automobiles (FCA), which at the time of the announcement owned 90% of Ferrari, said in October 2014 that it intended to separate Ferrari S.p.A. from FCA. The reorganization that made Ferrari N.V. (a Dutch business) the new holding company of the Ferrari S.p.A. group and the subsequent sale by FCA of 10% of the shares in an IPO and concurrent listing of common shares on the New York Stock Exchange marked the beginning of the separation in October 2015. The remaining parts of the split involved distributing FCA’s investment in Ferrari’s business among FCA shareholders, with Piero Ferrari continuing to retain 10% of it. The spin-off was finished on January 3, 2016.
The business has garnered attention for its ongoing involvement in racing throughout its history, particularly in Formula One, where it is the oldest and most successful racing team, having won the most constructors’ championships (16), as well as the most drivers’ championships (48). (15). Ferrari road vehicles are frequently regarded as a representation of riches, elegance, and speed. The 165,000 square meter (16.5 hectare) Maranello facility is where Ferrari automobiles are made. Ferrari was named the most powerful brand in the world in 2014 by Brand Finance. By market capitalization as of 2021, Ferrari ranks as the tenth-largest automaker at $52.21 billion.
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Capitalization: $36.74 billion
According to our research, this places Ferrari as the 437th most valuable firm in the world overall. The market capitalization, often known as market cap, is a measure of a firm’s value that takes into account all of the outstanding shares of a publicly listed company.
2015–2022 Ferrari Net Worth | RACE
An interactive graph shows Ferrari’s (RACE) historical market capitalization (net worth) over the previous ten years. A company’s market capitalization, or the current stock price multiplied by the number of outstanding shares, often represents how much it is worth. Ferrari has a $37.31B market value as of September 13, 2022.
Ferrari N.V. is a company that creates, produces, and sells sports automobiles. Its offerings include two grand tourer (GT) vehicles, the California T and FF, as well as sports car types including the 458 Italia, 488 GTB, 458 Spider, 488 Spider, F12 Berlinetta, and 458 Speciale. The company also creates one-off, limited-edition, and supercars like the LaFerrari. Its primary operating regions include Greater China, Europe, the Middle East, India, Africa, the Americas, and the rest of Asia-Pacific. The headquarters of Ferrari N.V. are in Maranello, Italy.
Why some major automakers aren’t as valuable as Ferrari
Perhaps, even in these difficult economic times, million-dollar sports cars can be profitable investments.
In May, the market valuation of Italian exotic manufacturer Ferrari rose to $30 billion, outpacing that of far larger automakers like Detroit’s General Motors, Ford, and even Ferrari’s erstwhile parent, Fiat-Chrysler.
Investors seem to think the high-end luxury sports car manufacturer is a decent investment at a time when economies and cultures all around the world are in upheaval due to the coronavirus outbreak.
The business enjoys high margins of roughly 24%, a long history in racing, and a well-known brand image.
Prior to its first public offering, which was completed in 2016, Ferrari’s late former Chairman and CEO Sergio Marchionne estimated the company’s valuation at about $11 billion. Today, its market capitalization is about three times that amount. Some analysts at the time believed the company was only worth around half what Marchionne predicted.
Ferrari had a $9.8 billion market value when it went public in 2015. Early in 2016, Ferrari completed the spin-off from FCA.
Marchionne thought Ferrari’s worth would be mostly driven by its illustrious brand. Selling automobiles, in his words, was “nearly incidental” to the value of Ferrari.
The business has long imprinted its brand on goods like apparel and watches. It even has a theme park of its own in Abu Dhabi.
Ferrari has admitted that using the name to market clothing or other products is dangerous. Ferrari can lose its reputation as a high-end brand if it puts its recognizable prancing horse insignia on inferior products.
The company, according to analysts who watch it, seems to be using a rigorous approach to marketing and carefully selecting partners and items. For instance, in 2019 Ferrari partnered with upscale Italian clothing brand Giorgio Armani.
Analysts claim that deals like this provide Ferrari the opportunity to utilize its brand while upholding its distinction and honoring its Italian history.
Ferrari is currently more valuable than Ford and General Motors combined.
- On Monday, Ferrari’s share price increased by as much as 7% as a result of good first-quarter earnings.
- With a market valuation of over $30 billion, it outperformed Ford and General Motors.
- The corporation reduced its annual revenue and earnings.
On October 21, 2015, in New York City, a Ferrari was parked outside the New York Stock Exchange to commemorate the IPO of the Ferrari Automotive Company.
Ferrari’s market value increased significantly on Monday morning to about $30 billion, making it more valuable than General Motors or Ford.
As much as 7% of Ferrari’s shares increased on Monday after the Maranello, Italy-based sports car manufacturer announced earnings that exceeded expectations. Despite closing its manufacturing in March, the company shipped a total of 2,738 automobiles, a 5% increase. Revenue decreased by 1% to $1.02 billion, above analyst expectations of $852 million.
The business also began its Maranello and Modena operations on Monday; full production is anticipated to resume on Friday.
Investors are betting that Ferrari’s legendary brand name, high prices, and sizable profit margins will likely power the stock through the coronavirus crisis better than other auto brands, despite the fact that Ferrari produces only 10,000 cars annually, compared to General Motors’ production of approximately 7.7 million vehicles last year.
The market value of Ferrari rose to $30.1 billion in early trade on Monday before falling to $29.8 billion later in the day. Ford’s market cap dropped to $19.2 billion, while General Motors’ dropped to under $29.3 billion. The market capitalization of Fiat Chrysler, which separated Ferrari in 2015, has decreased to less than $13 billion. Since becoming public, Ferrari’s share price has more than tripled.
Investors praised Ferrari’s relatively mild revisions to the year ahead, despite the fact that it cut its profitability outlook for the year and warned of further downturn in its Formula One business and other areas in the second quarter.
Ferrari declared a dividend in April, increasing it by 10% to 1.13 euros ($1.23) per share. Ferrari stated in its earnings statement that it was cutting its earlier forecast for net revenue from 4.1 billion euros ($4.5 billion) to between 3.4 billion and 3.6 billion euros ($3.7 billion to $3.9 billion). From a top range of 1.43 billion euros ($1.56 billion) to a top range of 1.2 billion euros ($1.31 billion), it reduced its expectation for adjusted profits before interest, taxes, depreciation, and amortization.
In contrast to most automakers, whose margins are under 5%, Ferrari has been able to retain margins of 24% thanks to the value of its brand and the demand for its sports cars, which range in price from $215,000 to more than $1 million.
Although there have been “few cancellations” of car orders in the United States and Australia, according to Ferrari CEO Louis Camilleri, “so far there are no red lights flashing in any location.”
The item has been amended to reflect that analysts had predicted a decline in Ferrari’s revenue to $852 million.
Enzo Ferrari’s net worth
It’s not as easy to answer the question of Enzo Ferrari’s money as you might think. According to online reports, he had a $100 million net worth at the time of his death. But they also claim that the man was perpetually in debt as a result of the high operating expenses of his racing team.
In truth, Enzo surrendered 50% of the Agnellis family, who at the time owned Fiat, in 1969 in order to keep Ferrari afloat. According to Celebrity Net Worth, the Agnellis acquired a further 40% of Ferrari after Enzo’s death in 1988, leaving Enzo’s son Piero to receive the remaining 10%. A
Piero still holds a 10% ownership part in his father’s business today, and in 2020 he even raised it by 0.23%. His shares are worth more than $5 billion based on the current market value of the business.
Summary
- Ferrari focuses on designing and building high-performance sports cars.
- The strongest brand in the world is Ferrari’s. Experts also point out that the brand value is $9.1 billion and is currently increasing at a 9% y/y rate.
- I used about the same figures that market analysts reported between 2021 and 2023. I made the decision to employ my FCF/Sales ratio and a 10% sales growth in 2024 and 2025.
- When compared to the present market price, Ferrari is overvalued in the model with a long-term growth rate of 5.2%.
- Ferrari’s FCF growth potential will determine how valuable the company will be. I believe that the company’s valuation could decrease dramatically if the FCF merely slightly drops in the upcoming years.
The majority of Wall Street analysts anticipate Ferrari’s (NYSE:RACE) FCF to increase. The brand’s worth is rising concurrently at 9% y/y. When combined with a WACC of 6.5% and other case studies, the company is undervalued. I believe that the share price will rise as more and more investors become aware of the company’s future free cash flow estimates. Shareholders must keep an eye on Ferrari to see if it fulfills or exceeds market expectations. Significant volatility in the target fair price results from a small decrease in the long-term growth rate in the DCF model.
Is Ferrari a publicly traded company?
On October 21, 2015, Ferrari N.V. (“Ferrari”) made its common shares available to the public at a price of USD 52 per common share (IPO price range: USD 48 – 52 per common share) on the NYSE, which is run by NYSE Euronext. Following the spin-off of the Ferrari business from Fiat Chrysler Automobiles N.V. (“FCA”), the common shares of Ferrari were listed at EUR 43 per common share on the Mercato Telematico Azionario (“MTA,” later renamed “Euronext Milan”) organized and managed by Borsa Italiana S.p.A. on January 4th, 2016. (1).
What is Ferrari’s market capitalization?
History and graph of the Ferrari market cap from 2015 until 2022. The most popular way to gauge the size of a publicly listed firm is to use its market capitalization (or market value), which is determined by dividing its current stock price by the total number of outstanding shares. On September 13, 2022, Ferrari’s market value was $37.31 billion.
Ford or Ferrari: whose business is more profitable?
First of all, put everything on hold and watch Ford vs. Ferrari if you haven’t already. We will wait.
… up to date now? You now know that in 1963 Ford attempted to purchase an almost bankrupt Ferrari, but Il Commendatore himself rejected the deal at the last minute, which is what caused the GT40 to destroy its opponents at Le Mans.
Five decades later, it appears the Italian supercar manufacturer has the last laugh because most Detroit-based automakers are now valued lower than the Italian enterprise.
With a value of $30 billion, Ferrari has surpassed Ford, GM, and its previous parent company, Fiat Chrysler Automobiles. Ferrari shares increased by 7% on Monday as the Maranello-based automaker posted earnings that exceeded expectations, despite the company’s production only having resumed this week after more than two months of interruption. Surprisingly, Ferrari also announced a 5% rise in car deliveries, up to 2,738, despite the shutdown.
How can Ferrari generate such large profits when General Motors produces roughly 8 million vehicles year while only delivering 10,000? Profit is a major factor: according to CNBC, Ferrari has a profit margin of about 24% on each vehicle, compared to a margin of about 5% for American automakers.
Investors, according to CNBC, believe Ferrari will fare better than other manufacturers in the Covid-19 crisis because of its excellent brand and profit. Good news for investors is also good news for Prancing Horse fans. This is just the most recent piece of good news to come out of Maranello, as Ferrari is now gradually restarting production as part of its “Back on Track” initiative, following the longest production pause in the company’s history.