| Summary: | The aim of this dissertation is to determine the target price of Ferrari, a leading player in the luxury performance car industry and the most successful race team in the Formula 1 history, in order to issue an investment recommendation relative to its market price. First, analyzing the state-of-art of the equity valuation techniques, it was concluded that the WACC-based DCF valuation represented the most suitable approach for the valuation of Ferrari. In addition, it was than complemented by a relative valuation, using forward-multiples. The valuation itself is based on a detailed analysis of the industry in which the company is positioned, the forces that it faces in this environment, and its historical performance and future prospects. It results in a median target price of EUR 157.33 within the range of EUR 153.44-161.30. Compared to the trading price as of 30th April 2020, at EUR 143.40, this represents an upside potential of 9.71%, which is then translated in a BUY recommendation. Finally, the main assumptions and the stock rating obtained are confronted with an equity report issued by a leading investment bank, namely UBI Banca, and the general consensus in the market. Despite minor differences in some basic assumptions, the recommendations share numerous commonalities and appear in line with the mean consensus.
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