Buffett Brain · Research note
Score updated 26 Sept 2026 · analysis from 17 May 2026
RACE· Consumer Discretionary
Ferrari
Ferrari's 51.61% gross margin and 18.26% ROIC suggest a strong brand moat, but a P/E of 30.7 limits margin of safety.
Buffett fit
Strong fit
Owner
73
Durability
99
Management
43
Price
57
Score updated 26 Sept 2026 · analysis from 17 May 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Consumer Discretionary stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
Owning Ferrari means leveraging its iconic brand to sustain high margins and of 18.26%.
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Ferrari's durability is underpinned by its brand, with a 5-year EPS CAGR of 18.82% and consistent profitability.
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Ferrari's management has kept share count flat with a -0.81% CAGR and a modest 1.23% yield.
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With an earnings yield of 3.25% and an yield of 5.43%, Ferrari is priced for growth.
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
7- 151.61% indicates strong .
- 2 of 29.6% highlights efficient operations.
- 3 of 18.26% exceeds the 15% threshold for a wonderful business.
- 4Consistent profitability over the last 5 years with no EPS decline.
Concerns
7- 1 of 30.7 suggests high market expectations.
- 2EV/ of 23.7 limits immediate valuation upside.
- 3Market cap versus retained earnings of -2.34 signals potential overvaluation.
- 4Management quality score of 43 indicates room for improvement.
Price history
$393+65.9%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Ferrari designs, produces, and sells luxury sports cars, generating $8.31B in revenue with a 22.2% net margin. The company also licenses its brand and operates theme parks and museums, adding diversified income streams. The business model relies on a strong brand image, allowing premium pricing. Unit economics are solid, with a 51.61% indicating substantial .
What other investors would say
The same company, judged by three other documented playbooks.
Keep researching
Similar companies in Consumer Discretionary
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