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News  ›  The Motley Fool

Ferrari Stock Looks Expensive -- or Does It?

The Motley Fool Logo The Motley Fool By Lawrence Nga
Ferrari Stock Looks Expensive -- or Does It?

Ferrari's stock appears expensive at 41 times earnings, but its unique luxury brand model, high profitability, and scarcity-driven business strategy suggest the premium valuation might be justified for long-term investors.

Insights
RACE   positive

High margins (38.3% EBITDA), strong brand power, consistent cash flow growth, and ability to maintain pricing power through limited production