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, primarily due to its high valuation ratios compared to the sector. Ferrari's Price-to-Earnings (PE) ratio stands at 51.65, significantly higher than the sector average of 15.61. A high PE ratio indicates that investors are willing to pay a premium for each dollar of earnings, which can suggest overvaluation. Additionally, the Price-to-Book (PB) ratio for Ferrari is 28.37, while the sector average is just 1.97. This indicates that the market values Ferrari’s stock at a much higher rate than its book value, raising concerns about whether the current stock price is justified. Furthermore, Ferrari's dividend yield is 0.54, compared to the sector average of 2.56. A lower dividend yield may indicate that the company is not returning as much to shareholders relative to its peers, which could influence investor sentiment negatively. In terms of profitability, while Ferrari shows strong metrics with a net profit margin of 22.79 and a return on equity (ROE) of 43.06, these figures do not alleviate the concerns surrounding its elevated valuation ratios. Investors may need to question whether such high valuations can be sustained in the long term, especially in a competitive market. 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.