Business

Ferrari valued at €70 billion joins the Stoxx 50 index

Eva Morletto

By Eva Morletto05 septembre 2023

Ferrari will become part of the Euro Stoxx 50 index starting from September 18. The announcement caused Ferrari's stock to surge by over 40%. The company is now valued at more than 70 billion euros, placing it among the giants of the Stoxx 50.

The Ferrari Purosangue is the first four-door, four-seat car in Ferrari history and is nicknamed "Purosangue", meaning purebred in Italian (Ferrari)

The prestigious automobile brand Ferrari and the French company Saint-Gobain will soon be included in the Euro Stoxx 50 index, marking a significant milestone for the Italian automaker. The inclusion will be effective from September 18, replacing the Irish company CRH and the German real estate group Vonovia.

The Euro Stoxx 50 stock index, equivalent to the French CAC 40, comprises the 50 most highly valued companies in the Eurozone in terms of market capitalization. Being listed in this index holds increasing importance, especially with the rise of passive investment funds in the financial world.

Every year at the end of August, STOXX Ltd. ranks the 600 companies with the highest market capitalization in the Eurozone. Certain outperforming companies often see their ranking improve and can replace other firms within the index.

For Ferrari, this news signifies a true achievement after months of exceptional performances in the markets. This year, Ferrari's stock has risen by more than 40%. Since its debut on the New York Stock Exchange in 2015 and the Milan Stock Exchange in 2016, the company's value has multiplied by six. The exponential growth of the luxury carmaker can be attributed to several factors: increasing demand that led to quickly filling orders and an efficient organization in production and logistics that allowed for faster deliveries compared to standard times. In the first quarter of 2023, from January to March, Ferrari delivered 3,567 vehicles worldwide, with orders booked until 2025. Orders for the company's first SUV, "Purosangue," had to be temporarily suspended due to overwhelming initial demand.

Ferrari's valuation has now exceeded 70 billion euros, allowing the company to join other giants in the Stoxx 50, such as Novo Nordisk, Shell, and the French conglomerate LVMH.

According to analyses and forecasts by FactSet, a specialist in financial data management, the Ferrari group is projected to achieve excellent results throughout 2023. All indicators suggest a record-breaking year in terms of revenue and net profit.

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