Stock Analysis & Valuation Ferrari N.V. (2FE.DE)

• Previous Close: €280.70
• Sector Valuation Confidence Level: Moderate

Valuation method	Value, €	Upside, %
Artificial intelligence (AI)	238.21	-15
Intrinsic value (DCF)	228.28	-19
Graham-Dodd Method	20.92	-93
Graham Formula	164.41	-41

Strategic Investment Analysis

Company Overview

Ferrari N.V. (2FE.DE) is a globally renowned luxury performance sports car manufacturer headquartered in Maranello, Italy. Founded in 1947, Ferrari designs, engineers, and produces high-end sports cars, including GT, special series, limited-edition hypercars, and one-off models. Beyond automotive excellence, Ferrari extends its brand into lifestyle and entertainment through licensing agreements, theme parks (Ferrari World in Abu Dhabi and Ferrari Land in Europe), apparel, and accessories sold via monobrand stores and e-commerce. The company operates a global network of 172 authorized dealers and 30 retail stores, reinforcing its exclusivity. Ferrari also engages in motorsports, after-sales services, and financial leasing, solidifying its position as a leader in the ultra-luxury automotive sector. With a market cap exceeding €75 billion, Ferrari combines heritage, innovation, and scarcity to maintain its elite status in the consumer cyclical industry.

Investment Summary

Ferrari represents a compelling investment due to its strong brand equity, pricing power, and limited production strategy, which ensures exclusivity and high margins. The company's financials are robust, with FY revenue of €6.68 billion and net income of €1.52 billion, supported by a loyal customer base and diversified revenue streams (e.g., licensing, services). However, its premium valuation (high P/E) and exposure to macroeconomic downturns pose risks. Ferrari’s low beta (0.69) suggests relative stability, but reliance on discretionary luxury spending makes it cyclical. Investors benefit from consistent dividends (€2.99/share) and strong cash flow generation (€1.93 billion operating cash flow), though capital expenditures (€-482 million) reflect ongoing investments in innovation and sustainability.

Competitive Analysis

Ferrari’s competitive advantage lies in its unmatched brand prestige, scarcity-driven production (sub-10,000 annual units), and motorsport legacy (e.g., Formula 1 dominance). Unlike mass-market automakers, Ferrari’s exclusivity allows premium pricing (average car price ~€350,000) and high margins (22.8% net margin in FY). The company’s vertical integration—controlling design, engineering, and retail—ensures quality and brand consistency. Competitors like Lamborghini and McLaren lack Ferrari’s historical cachet and broad revenue diversification (e.g., licensing, theme parks). Ferrari’s weakness includes limited electrification progress compared to rivals like Porsche, though its hybrid models (e.g., SF90 Stradale) mitigate this. Geographically, Ferrari’s stronghold in Europe (44% of sales) and Asia (27%) balances exposure, but reliance on ultra-high-net-worth individuals makes demand sensitive to economic cycles. The company’s R&D focus on performance (not volume) sustains its edge in the ultra-luxury segment.

Major Competitors

• Porsche Automobil Holding SE (PAH3.DE): Porsche competes in the high-performance luxury segment with models like the 911 and Taycan (EV). Its strength lies in Volkswagen Group’s scale, enabling shared R&D and electrification leadership. However, Porsche’s higher production volume (~300,000 units/year) dilutes exclusivity vs. Ferrari. Porsche’s broader SUV lineup (Cayenne, Macan) diversifies revenue but lacks Ferrari’s motorsport pedigree.
• Ferrari N.V. (RACE): Ferrari’s primary listing (RACE) mirrors 2FE.DE. Its dual listing enhances liquidity but does not alter fundamentals. The NYSE listing attracts more U.S. investors, though operations remain Italy-centric.
• Mercedes-Benz Group AG (MBG.DE): Mercedes’ AMG division competes in performance luxury but targets a wider audience (e.g., GT models). Its strength is global scale and electrification (EQ line), but mass-market exposure limits pricing power vs. Ferrari. Mercedes’ F1 rivalry with Ferrari boosts brand visibility but lacks Ferrari’s singular focus on exclusivity.
• Lamborghini (via Audi AG) (LAMB.MI): Lamborghini rivals Ferrari in supercars (e.g., Aventador, Huracán) but is owned by Volkswagen, leveraging group resources. Its design-forward appeal attracts younger buyers, though limited motorsport presence and no standalone financials reduce transparency vs. Ferrari.
• McLaren Group (MCL.L): McLaren’s focus on lightweight, track-focused cars (e.g., 720S) competes with Ferrari’s performance segment. However, McLaren’s smaller scale, financial instability (2022 restructuring), and lack of brand extensions (e.g., licensing) weaken its position vs. Ferrari’s diversified model.