TIL: Ferrari is somehow Europe's most valuable car company. ~70bn EUR market cap vs ~50bn for VW for example
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@Techaltar now thatβs easy. Luxury products are on the uprise since 2018ish β with an additional hefty spike at COVID times.
@Techaltar it shows you that market cap cares about brand and not real value
@Techaltar this is also the reason why car makers shifted from building affordable to making more luxurious cars. Profit margins are higher
@Techaltar π Well, I guess it shows that the market evaluation is not always well correlated with economic reality.
Ferrari's net profit margin: ~23%
VOLKSWAGEN net profit margin: ~2.89%
It 'pays' more to own Ferrari stock, thus it's more "valuable".
A similar situation of Apple NOT being the biggest phone manufacturer in the world, but it's the most profitable. Or LVMH for that matter.