Ferrari Trades at 36x Earnings — Here’s How to Pay 15x (Paywalled)

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Ferrari trades at a price-to-earnings ratio that would make even a tech bro blush — around 37 times earnings for a car company that builds fewer vehicles in a year than Toyota makes in a day. But there’s a quieter, more elegant way to own the prancing horse without paying luxury multiples. In other words, it’s the investing equivalent of walking into a Ferrari dealership and finding everything 60% off — just with more spreadsheets and fewer exhaust fumes. And best, you don’t have to wait for a midlife crisis to do this.

Ferrari’s commercial cars have done a phenomenal job in 2025 unlike their F1 counterparts. But as with all things, the investor sentiment was much faster than Ferrari’s F80 and Purosangue. The sentiment ended up crashing badly without airbags in their recent Capital Markets Day when revenue guidance was going to come in at 7 Billion euros, just under 10% growth. The stock quickly went down from $500 per share to currently at $390 per share. 23% decline.

Despite this, Ferrari still trades like it has AI in its name at a rich 37 times earnings. Some compounder bros are going to jump at this opportunity, usually something around how high ROIC and a few Charlie Munger quotes is enough to make an investment case. I doubt this stock would ever touch the value territory. Ferrari sells around 13,000 cars per annum and it is estimated that there are at least 5 million people who can afford one and would like a Ferrari. More than 66% of Ferrari owners have more than 1 in their garage. The select super models like F80 are limited editions and exclusively made for their top customers who own multiple Ferraris. Ferrari is an anomaly of cars where a used Ferrari can sometimes fetch more than its price. It is the Rolex of cars.

You can buy Ferrari at 15 times earnings, a more palpable valuation