Ferrari: Valuing the Prancing Horse
Suggested Assignment Questions
What do you believe is the key to Ferrari’s brand value? What does Ferrari need to do over
time to retain and potentially build that value?
What is the primary market for Ferrari sales?
What are company?
How does Ferrari’s financial performance compare to other global automakers?
How is that Ferrari has been able to achieve such high gross and operating margins
compared to its competitors?
What are the fundamental principles of the discounted cash flow valuation?
What key variable inputs or assumptions are of most critical interest for Ferrari’s valuation?
What do you think is a relevant range of values for Ferrari’s Discount Cash Flow (DCF) valuation?
What conclusions can you draw from the comparative analysis? Are these in any significant
way different from what the DCF analysis shows? Hint: Considering using Price-to-Earnings or
Enterprise-Value-to-EBITDA to calculate Ferrari’s value.
Final thoughts: What is Ferrari stock worth?