Based on the comprehensive data analysis, Ferrari (RACE) appears to be trading at premium valuations:
Valuation Metrics
The stock currently trades at a P/E of 52.8x (Q3 2024), significantly above the industry average. The EV/EBITDA of 44.4x and P/S ratio of 11.7x also indicate rich valuations compared to automotive peers.
Recent Performance & Catalysts
Ferrari reported strong Q4 earnings with revenue up 14% and EPS of €2.14, beating estimates. The company's luxury positioning and pricing power remain intact, with average vehicle prices exceeding $500,000.
Analyst Sentiment
Recent analyst actions have been mixed - Barclays downgraded to Hold while RBC Capital raised the price target to €500. The consensus shows a Moderate Buy rating with a $483.83 price target, implying limited upside from current levels.
Key Concerns
- China shipments declined 21% in Q4
- Insider sentiment has turned negative with increased selling
- Current valuation multiples are at historical highs
- Stock is trading near all-time highs at $453
Based on these factors, RACE appears overvalued at current levels. While the company's business fundamentals remain strong, the premium valuation and mixed analyst sentiment suggest limited upside potential in the near term.