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 financial metrics indicate that the stock may not be justifiably priced given its current performance relative to its sector. The Price-to-Earnings (PE) Ratio for Ferrari stands at 51.65, significantly higher than the sector average of 15.61. A high PE ratio can suggest that a stock is overvalued, as investors may be paying more for each unit of earnings compared to other companies in the industry. Similarly, the Price-to-Book (PB) Ratio of 28.37 exceeds the sector average of 1.97, indicating that the market values Ferrari's assets considerably higher than the actual book value, which may not be sustainable in the long term. Furthermore, Ferrari's Dividend Yield is notably low at 0.54, compared to a sector average of 2.56. A lower yield may indicate that the company is not returning as much cash to shareholders relative to its stock price, which could be a concern for income-focused investors. In terms of asset efficiency, the Return on Assets (ROA) Ratio of 16.02, while positive, does not necessarily offset the high valuations indicated by the other ratios when viewed in the context of overall sector performance. These financial indicators suggest that Ferrari's stock may be priced too high relative to its actual earnings and asset values, leading to the 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.