The five secrets to Ferrari's success as a luxury brand

Ferrari becomes most valuable luxury company #

Luxury car manufacturer Ferrari has overtaken Hermès as the most valuable luxury company in the world. Ferrari’s stock now trades at 50 times earnings, compared to 48 for Hermès and 23 for LVMH. The company is valued at over $75 billion, which is approximately 1½ times the market cap of Ford or General Motors. Despite producing only 13,663 cars last year, Ferrari’s stock multiple, which gauges growth and profit prospects, indicates its strong growth potential. Ferrari’s CEO, Benedetto Vigna, discussed the company’s commitment to emotion, scarcity, and pricing as key factors in its success. Additionally, Ferrari employs a strategy of making more profit per car rather than increasing production quantity.