An outlook for the future Ferrari’s boom

Abstract

Ferrari is one of the world’s leading luxury brand for designing, developing, manufacturing and selling cars. With a growing stock price, Ferrari’s potential is showing. Affected by the growth in Formula 1 engagement and soon launching its first SUV, Ferrari’s revenues are expected to boom. The evaluation conducted displays a bright future for the company. However, some risks also arise, mainly the fact Ferrari’s multiples are very inflated, even for a luxury company. Another concern regarding its cash flows might arise, as they could represent lost investment opportunities. Nevertheless, due to the potential share price and historical data, a “BUY” decision is recommended.