RACE is now overvalued and could go down -26%

Based on our analysis, Ferrari N.V. has received an overvalued rating of 2 out of 5 stars from Cashu. Several key financial metrics indicate that the company is not performing as strongly as its sector counterparts. The Price-to-Earnings (PE) Ratio for Ferrari is not applicable (NaN), which makes it difficult to assess its profitability relative to its price. In contrast, the sector PE Ratio stands at 17.12, suggesting that competitors are able to generate more earnings per share relative to their stock prices. This could indicate that Ferrari is not capitalizing on its revenue potential as effectively as its peers. Additionally, the Price-to-Book (PB) Ratio is also NaN, limiting insight into how the market values Ferrari’s assets compared to its book value. The sector average PB Ratio is 2.04, highlighting that other companies in the industry maintain a healthier relationship between their market price and net assets. Ferrari’s net profit margin, another critical metric, is NaN compared to the sector's average of 0.25. This suggests that Ferrari is not translating its revenue into profit as effectively as its peers, potentially indicating operational inefficiencies. Furthermore, the Return on Equity (ROE) Ratio for Ferrari is NaN, whereas the sector average is 1.98. This indicates that Ferrari may not be generating sufficient returns for its shareholders compared to other companies in the industry. Overall, these financial ratios suggest that Ferrari N.V. is underperforming relative to its sector, leading to its overvalued rating. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.