Ferrari is worth more than General Motors or Ford

TusharK · 5th May 2020, 14:51

Ferrari is now worth more than General Motors or Ford.

Ferrari's market value surged to US$ 30.1 billion on Monday, before settling back to US$ 29.8 billion. General Motors' market capitalization fell below US$ 29.3 billion, while that of Ford fell to US$ 19.2 billion.

Ferrari is worth more than General Motors or Ford-ferrari.jpg

On Monday, Ferrari's share price went up by 7% after the supercar maker reported better-than-expected first-quarter earnings. Ferrari shutdown its factory in March due to the outbreak of the Covid-19 pandemic. Still, total shipment of cars increased by 5% to 2,738 units. The company's revenue fell only 1% to US$ 1.02 billion.

Ferrari builds around 10,000 cars a year, which far less than General Motors, which produces about 7.7 million. But, investor confidence is reportedly fueled by the high prices of their products and profit margins, as well as the brand name.

Source

Link to Team-BHP News

Miyata · 5th May 2020, 17:12

And to think the impossible:

Worth (Tesla) > Worth (Ferrari + Ford + GM)

Jeevith · 5th May 2020, 20:53

Can't help but think of Formula 1 when reading anything Ferrari related. Which got me thinking as to what might be the market cap of their current nemesis Mercedes.....35.28 billion as of May 5th, 2020*

* https://ycharts.com/companies/DDAIF/market_cap

SmartCat · 6th May 2020, 11:50

Ferrari stock has gone up 3x times since listing:

Ferrari is worth more than General Motors or Ford-race.jpg

At $30 billion valuations, Ferrari is trading at 35 times annual profits - which is way too expensive in these times. But I get the feeling that investors are not treating Ferrari as an automobile stock. Ferrari is probably classified as a luxury lifestyle brand like LVMH (Louis Vuitton Moet Hennesey), Christian Dior or Estee Lauder.

Also, the path chosen by central banks (zero interest rates, unlimited quantitative easing) of US, Europe and Japan to tackle the Covid-19 economic crisis is likely to increase the gap between rich and poor. That is, the rich will have access to the "free money" first, before it trickles down to the middle-class and the poor.

In this environment, investors probably feel Ferrari will do well.

RM Motorsports · 14th June 2020, 11:56

The Rise Of Ferrari

Source - CNBC

https://www.youtube.com/watch?v=GBAabiVfMhw

5th May 2020, 14:51	#1
TusharK Senior - BHPian Join Date: Jul 2017 Location: Pune Posts: 7,409 Thanked: 65,602 Times	Ferrari is worth more than General Motors or Ford Ferrari is now worth more than General Motors or Ford. Ferrari's market value surged to US$ 30.1 billion on Monday, before settling back to US$ 29.8 billion. General Motors' market capitalization fell below US$ 29.3 billion, while that of Ford fell to US$ 19.2 billion. On Monday, Ferrari's share price went up by 7% after the supercar maker reported better-than-expected first-quarter earnings. Ferrari shutdown its factory in March due to the outbreak of the Covid-19 pandemic. Still, total shipment of cars increased by 5% to 2,738 units. The company's revenue fell only 1% to US$ 1.02 billion. Ferrari builds around 10,000 cars a year, which far less than General Motors, which produces about 7.7 million. But, investor confidence is reportedly fueled by the high prices of their products and profit margins, as well as the brand name. Source Link to Team-BHP News
	(13) Thanks

5th May 2020, 17:12	#2
Miyata BHPian Join Date: Sep 2018 Location: Galavanting Posts: 353 Thanked: 1,790 Times	Re: Ferrari is worth more than General Motors or Ford And to think the impossible: Worth (Tesla) > Worth (Ferrari + Ford + GM)
	(4) Thanks

5th May 2020, 20:53	#3
Jeevith BHPian Join Date: Jul 2015 Location: Bangalore Posts: 232 Thanked: 546 Times	Re: Ferrari is worth more than General Motors or Ford Can't help but think of Formula 1 when reading anything Ferrari related. Which got me thinking as to what might be the market cap of their current nemesis Mercedes.....35.28 billion as of May 5th, 2020* * https://ycharts.com/companies/DDAIF/market_cap
	(4) Thanks

6th May 2020, 11:50	#4
SmartCat Team-BHP Support Join Date: Jun 2007 Location: Bangalore Posts: 7,185 Thanked: 51,767 Times View My Garage	Re: Ferrari is worth more than General Motors or Ford Ferrari stock has gone up 3x times since listing: At $30 billion valuations, Ferrari is trading at 35 times annual profits - which is way too expensive in these times. But I get the feeling that investors are not treating Ferrari as an automobile stock. Ferrari is probably classified as a luxury lifestyle brand like LVMH (Louis Vuitton Moet Hennesey), Christian Dior or Estee Lauder. Also, the path chosen by central banks (zero interest rates, unlimited quantitative easing) of US, Europe and Japan to tackle the Covid-19 economic crisis is likely to increase the gap between rich and poor. That is, the rich will have access to the "free money" first, before it trickles down to the middle-class and the poor. In this environment, investors probably feel Ferrari will do well. Last edited by SmartCat : 6th May 2020 at 11:52.
	(4) Thanks