Latest news with #EnzoFerrari
Miami Herald
3 days ago
- Automotive
- Miami Herald
Ferrari Stock is as Pricey as Its Cars. Have Investors Lost Their Minds?
Close your eyes and pretend that I can give you any car you want. If I could just give you any car in the world, right now, what would you ask for? Was the first car to pop into your head something from Maranello? A Ferrari, perhaps? It probably was for many of you. After all, it's one of the most important and well-known luxury brands in the world. Sadly, while most of us can't afford to own a Ferrari, there is a piece of Ferrari that all of us can buy. And that's ownership in Ferrari itself. That's right, we can buy the stock! Ferrari has been a publicly traded company since late 2015. During that time, its shares have increased from a low of $29.27 to a recent high of more than $500. I'll admit to having watched the stock for years but have never pulled the trigger to buy it. I'd be driving a Ferrari if I had. The thing is, at $460, Ferrari stock trades like a luxury good, with a price-to-earnings multiple of more than 45! For the past 12 months, the company earned $8.81 a share. That means that when you buy a share of Ferrari today, you're paying more than 45 times one year's earnings for that share. To say it another way, if the company were to buy the shares back from you, it would take them 45 years to earn enough money to do so. You could buy other car companies for much less. Mercedes trades at just 5.5 times its prior 12-month earnings. GM trades at 7 times and Ford at just 8.35 times. Of course, those are relatively inexpensive compared with Tesla, whose shares trade for a whopping 174 times its trailing 12 months' earnings. Here's a table that I pulled from Schwab to showcase this difference: Compared with the other car companies, investors definitely see something in Ferrari. They love the stock! The Question of the Week, then, is why would investors want to buy Ferrari shares when it has such a high price-to-earnings ratio? Are Ferrari shares a luxury good? On June 15th, Ferrari won the most prestigious and challenging 24-hour endurance racing event: the 24 Hours of LeMans. That's a big deal for a couple of reasons. First, it's one of those great stories of triumph over adversity that we all love. Ferrari dominated sports car racing from its founding in 1947 through 1965. Led by Enzo Ferrari, the company won Le Mans six years in a row, from 1960 through 1965. Then Ford came on the scene. If you've seen Ford vs. Ferrari, you know that Ford won in 1966; in fact, Dearborn took home all the trophies through the 1960s. Then Porsche dominated. Since Ford knocked Ferrari off its endurance racing pedestal in 1966, the Maranello, Italy, company didn't win at Le Mans again until two years ago. And then it won again last year. And this year. They're back! Adding to the drama, one of the drivers, Robert Kubica, had been tapped to drive a Ferrari in F1 competition back in 2012, but suffered a devastating crash that derailed his career at the top level of motorsports. Kubica worked his way back, transitioning to endurance cars, which perform like F1 cars but are designed to race for up to 24 hours at a time. In 2024, Ferrari tapped Kubica to join its endurance racing team. His car failed to finish in that race but was victorious this past weekend. These two comeback stories not only showcase how hard it is to succeed in motorsports but also how sweet the victory is. So, is Ferrari's stock as sweet as Ferrari's motorsports victory at Le Mans this year? Here's the thing about Ferrari. It's not just a car company. It's a lifestyle brand. Sure, the core of its business is selling cars, but its cars are not transportation. So, Ferrari should not trade like a regular car company. You could say the same about Tesla, which trades on car sales but also on the reputation of CEO Elon Musk and assumptions about the electric-vehicle company's growth in AI and robotics. Surely, however, Ferrari should trade like a regular stock? The S&P 500 has a PE of approximately 28, which is relatively high historically. Even Alphabet has a PE below 20. And Warren Buffett's Berkshire Hathaway has a PE below 13! So why would Ferrari trade for such a high price relative to its earnings? Well, Ferrari has three qualities that separate it from the competition: a wide moat, strong margins, and leading growth. When Morningstar analysts evaluate a company, they look to see whether the company has a competitive advantage over its peers. They call this a moat, and companies like Ferrari are said to have wide moats because they have strong brand recognition, high pricing power, and strong customer loyalty. Racing is a part of that moat, and when Ferrari wins, its customer loyalty increases. In fact, racing is literally part of Ferrari's marketing plan. As the old saying goes, win on Sunday, sell on Monday. Ferrari, with its high pricing power and multiyear customer waiting lists, is able to charge premium prices for its products. The profit that the company makes on each car is higher than that of other car companies, including premium manufacturers like Porsche. Ferrari has shown consistently stable earnings growth of around 18% annually over the past five years, according to data shown on my Schwab research portal. Analysts expect that to continue for the next five years, too. Even Tesla isn't expected to grow that quickly. So here's the thing. Ferrari does deserve to trade with a much higher valuation than other car companies. Its wide moat means that other companies can't easily compete for Ferrari's customers, the company's customer loyalty means that Ferrari can charge a higher price for its cars and be more profitable, and those customers have money to spend and have enabled Ferrari to grow at a pace that's nearly as fast as its race cars. You can see this in the price/earnings growth multiple (aka PEG) in the table above. Ferrari trades with a PEG multiple of a little over 4. This multiple takes the PE and divides it by growth. By comparison, Tesla has a PEG of more than 7. Ferrari is a much better value than Tesla. I like this multiple because it tells a better story than just the PE. It allows growth companies to have a higher PE because they deserve it - well, they deserve it if they can continue to grow. Does this mean you should buy Ferrari shares? You'll have to do your own research. I said that the company deserves to trade at a higher valuation than other car companies, but it's still anything but cheap. This article was reprinted from a series on our sister publication, TheStreet, called Filthy Rich Animal. Filthy Rich Animal is a weekly newsletter that provides jargon-free insights to help new investors become... well, filthy rich animals! It's free to subscribe, and we hope you like it. If you'd like content sent directly to your email inbox, subscribe here. Copyright 2025 The Arena Group, Inc. All Rights Reserved.
Vogue
19-06-2025
- Automotive
- Vogue
Ferrari Resort 2026 Collection
A 1960s photo in Ferrari's Maranello workshop—where Enzo Ferrari founded the famous automotive company in 1947—shows a glamorous lady wearing fur and cat-eye sunglasses observing Ferrari craftsmen at work. During an in-studio preview, creative director Rocco Iannone explained that the image is one of the main focuses of the resort 2026 collection. It's important because it exemplifies the brand's cultural status, a carmaker so well known that 'the word Ferrari itself is commonly used as an absolute comparative,' as Iannone put it. With this in mind, he designed a collection that keeps the workshop at its heart. The opening looks are inspired by engineers working in business- and science-oriented areas, with sartorial looks made of coated denim trench coats and leather separates, often matched with Ferrari-red ties. References to the automotive world are recurring but always subtle, such as the car silhouette evoked through the shape of zips or the shoulders of leather bikers and blousons with integrated spoilers that clearly recall those found on Ferraris. Sometimes, instead, actual car parts become the main materials; as is the case with discarded Ferrari tires that have been transformed into a yarn used for knitwear and iridescent suits—a copyrighted fabric called Q-Cycle—in an innovative approach to circular creativity. In other cases, inspiration comes from pilot gear of the past, like the ample leather cargo pants that recall the 1930s, or the 7x7 check, typical of racing suits, that was reworked on silk shirt dresses, knitwear pieces, and embossed leather garments. Among the accessories, the soft La Ferrari Dino bag stands out; it's a riff on the Dino model, a car named after Enzo's son.
Scottish Sun
31-05-2025
- Automotive
- Scottish Sun
Oldest Ferrari car in existence built in the 1940s with open top sells at auction for record price of £6.3million
An anonymous phone bidder bought the piece of motoring history RED ALL OVER Oldest Ferrari car in existence built in the 1940s with open top sells at auction for record price of £6.3million Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) THE oldest Ferrari car in existence has sold at auction for a record price of £6.3 million. The 1948 Ferrari 166 Spyder Corsa was Enzo Ferrari's first car, designed to compete in circuit racing and drive on the road. Sign up for Scottish Sun newsletter Sign up 4 The vintage motor sold for a record price Credit: BNPS 4 The car has been meticulously maintained Credit: BNPS Only nine of the motors were ever made making them some of the rarest Ferraris in existence. This one was bought by the Besana brothers, the Italian car company's first ever customers, who would have had the car built to order. The 166 Spyder Corsa competed in numerous races between 1949 and 1957 before being purchased by American collector Henry Austin Clark in 1965. The red car was bought for around £3,000 with an additional £400 for the official mantra of "World's Oldest Ferrari." The seats, paintwork and wire wheels were painstakingly restored, with Enzo Ferrari reportedly taking a personal interest in the car. Clark reportedly received an offer of around £20,000 for it in 1971, but his family ended up holding onto it until 2015, when they sold it to a renowned Ferrari collector. The 77 year old car still has its original chassis, body, V12 engine and gearbox making it the most original of the 166 Spyder Corsas. It was even sold with its original certification proving its authenticity as one of the earliest Ferraris ever sold. Boasting a top speed of 125mph the vintage motor does 0-60mph in around six seconds. It was sold to an anonymous phone bidder by Broad Arrow Auctions at an auction near Lake Como, Italy. It sold for a hammer price of £5.3 million, the total came to around £6.3 million after auction fees. The motor set the record for the most expensive 1948 Ferrari 166 Spyder ever sold. 4 The Ferrari still has its original V12 engine Credit: BNPS 4 It has the official title of "World's Oldest Ferrari." Credit: BNPS Barney Ruprecht, vice president of Broad Arrow Auctions, said: "It is an absolutely fabulous sale for an amazing early sports car. "The 166 Spyder Corsa is quite literally the earliest and most important Ferrari in existence today. "It has significant period racing history at some of the most renowned events in Italy and throughout Europe, so it feels only natural to sell the car at the most prestigious concours event on the continent. "It is an immediate world-class acquisition to own the first Ferrari. "Any enthusiast of the Ferrari brand, including both older, established collectors and the rising generation now in the market, will feel drawn to the DNA of such a legendary marque. "Nothing else on the market today, at any price, offers the cache of this car." The Ferrari is one of two models purchased by the Besana brothers, Ferrari's earliest customers. The Spyder Corsa boasts chassis number 004 C, finished sixth overall at the 1948 Targa Florio, raced at the 1948 and 1949 Mille Miglia and also has period Formula Two competition and hill climbs added to its race tally.
The Sun
31-05-2025
- Automotive
- The Sun
Oldest Ferrari car in existence built in the 1940s with open top sells at auction for record price of £6.3million
THE oldest Ferrari car in existence has sold at auction for a record price of £6.3 million. The 1948 Ferrari 166 Spyder Corsa was Enzo Ferrari's first car, designed to compete in circuit racing and drive on the road. 4 4 Only nine of the motors were ever made making them some of the rarest Ferraris in existence. This one was bought by the Besana brothers, the Italian car company's first ever customers, who would have had the car built to order. The 166 Spyder Corsa competed in numerous races between 1949 and 1957 before being purchased by American collector Henry Austin Clark in 1965. The red car was bought for around £3,000 with an additional £400 for the official mantra of " World's Oldest Ferrari." The seats, paintwork and wire wheels were painstakingly restored, with Enzo Ferrari reportedly taking a personal interest in the car. Clark reportedly received an offer of around £20,000 for it in 1971, but his family ended up holding onto it until 2015, when they sold it to a renowned Ferrari collector. The 77 year old car still has its original chassis, body, V12 engine and gearbox making it the most original of the 166 Spyder Corsas. It was even sold with its original certification proving its authenticity as one of the earliest Ferraris ever sold. Boasting a top speed of 125mph the vintage motor does 0-60mph in around six seconds. It was sold to an anonymous phone bidder by Broad Arrow Auctions at an auction near Lake Como, Italy. It sold for a hammer price of £5.3 million, the total came to around £6.3 million after auction fees. The motor set the record for the most expensive 1948 Ferrari 166 Spyder ever sold. 4 4 Barney Ruprecht, vice president of Broad Arrow Auctions, said: "It is an absolutely fabulous sale for an amazing early sports car. "The 166 Spyder Corsa is quite literally the earliest and most important Ferrari in existence today. "It has significant period racing history at some of the most renowned events in Italy and throughout Europe, so it feels only natural to sell the car at the most prestigious concours event on the continent. "It is an immediate world-class acquisition to own the first Ferrari. "Any enthusiast of the Ferrari brand, including both older, established collectors and the rising generation now in the market, will feel drawn to the DNA of such a legendary marque. "Nothing else on the market today, at any price, offers the cache of this car." The Ferrari is one of two models purchased by the Besana brothers, Ferrari's earliest customers. The Spyder Corsa boasts chassis number 004 C, finished sixth overall at the 1948 Targa Florio, raced at the 1948 and 1949 Mille Miglia and also has period Formula Two competition and hill climbs added to its race tally.
Yahoo
28-05-2025
- Automotive
- Yahoo
Historic Ferrari Sale Headlines Broad Arrow's Record-Setting Debut at Villa d'Este
⚡️ Read the full article on Motorious A 1948 Ferrari 166 Spyder Corsa shattered records at Broad Arrow Auctions' first European event, selling for €7,543,750 and setting a new high-water mark for the model. The landmark sale headlined Broad Arrow's debut at the Concorso d'Eleganza Villa d'Este, held on the shores of Lake Como in partnership with BMW AG. The auction house, a subsidiary of Hagerty (NYSE: HGTY), reported €31,172,625 in total sales over the May 24–25 weekend, with 78 percent of lots sold. The dual-day auction marked Broad Arrow's inaugural sale on European soil, held in the historic Rotunda at Villa Erba. 'We are thrilled with the success of our first European auction,' said Joe Twyman, Broad Arrow's VP of Sales for EMEA. 'To launch our presence with such a prestigious event and achieve several record-breaking results speaks volumes about our global client base and the quality of vehicles offered.' The Ferrari 166 Spyder Corsa, lauded as one of the most original early Ferraris in existence, was a standout. Commissioned in period by one of Enzo Ferrari's earliest customers, the car boasts a significant competition pedigree, including appearances in the Mille Miglia and Targa Florio. The auction room fell silent during a tense bidding war, with the final price confirming the car's place in the upper echelon of historic Ferrari values. Other notable sales included a 2003 Honda NSX-R, which set a world auction record at €934,375, and a 1989 Ferrari F40 Competizione, which commanded €2,312,500. A BMW M1 Procar-spec car, sold during a BMW-only auction session, fetched €602,500. With over 8,000 viewers following online, Broad Arrow's first Villa d'Este sale exceeded expectations, showcasing everything from postwar icons to modern collectibles. The auction house will next head to California for its Monterey Jet Center sale this August 13–14.
