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Is this Large Market Cap Stock target price reasonable for Ferrari N.V. (NYSE:RACE)?

The company in question is, Ferrari N.V. (NYSE:RACE) currently with a stock price of 52.72 (0.40% today). The market cap for Ferrari N.V. is 9857.18, and is in the sector Consumer Goods, and Auto Manufacturers – Major industry. The target price for Ferrari N.V. is 50.17. Currently Ferrari N.V. is trading with a P/E of 27.54, and a forward P/E of 24.99. Average volume for Ferrari N.V. is 466.67 and so far today it is 590034.

Performance in the last year for Ferrari N.V. has been *TBA. For EPS growth, Ferrari N.V. has seen a growth of 10.10%, and is looking to grow in the next year to 10.06%. More long term stats show that EPS growth has been *TBA over the last five years and could be 16.40% for the next five years. Ferrari N.V. has seen sales growth quarter over quarter at 5.90%, with EPS growth quarter over quarter at 29.70%. The 20-day simple moving average is 6.61%, with the 200-day simple moving average coming to 21.42%.

Since the IPO date for Ferrari N.V. on the 10/21/2015, Ferrari N.V. has seen performance year to date to be 10.79%. With Ferrari N.V. trading at 52.72, the dividend yield is 0.97%, and the EPS is 1.91.

So could Ferrari N.V., be undervalued? Well as said before P/E is 27.54. The PEG is 1.68, P/S is 2.99 and the P/B is at 83.35. The P/cash is 14.98, with P/free cash flow at 39.63.

Ferrari N.V. ability to deal with debt shows that the current ratio is 1.8, and the quick ratio is 1.5. This is with long term debt/equity at 23.38, and total debt/equity at 0.

In terms of margins, Ferrari N.V. has a gross margin of 48.20%, an operating margin of 16.70% and a profit margin of 10.90%.Payout ratio for Ferrari N.V. is 0.00%. Return on assets come to 7.50% with return on investment coming to 13.40%.

Insider ownership for Ferrari N.V., is at *TBA and institutional ownership comes to 57.70%. Outstanding shares are at 187.72. While shares float is 168.57. The float short is currently 2.71%, and short ratio is 9.78.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Peter Clarke

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