Why Ferrari is worth more than some major automakers

Perhaps million-dollar sports cars can be good investments, even in tough economic times.

Italian exotic carmaker Ferrari’s market value soared to $30 billion in May, surpassing market values for far larger automakers, such as Detroit’s General Motors, Ford, and even Ferrari’s former parent, Fiat-Chrysler.

At a time when economies and societies around the world have been thrown into turmoil over the coronavirus pandemic, investors appear to find the high-end luxury sports car maker a good bet.

The company has generous margins around 24%, a strong racing heritage and a brand image admired around the world. 

Its market capitalization is roughly 3 times the roughly $11 billion value that…