Ferrari’s market value rises to $54 billion

The market value of Italian luxury sports car maker Ferrari exceeded that of the multinational Stelants Group, comprising Italian vintage car company Fiat, which was once the owner of Ferrari.

Ferrari’s share price rose 34% this year to become the best performing stock among European automakers.

The company’s market value reached 49.2 billion euros ($53.9 billion), while Stillants’ market value reached 47.1 billion euros, becoming one of the three largest companies listed on the Milan Stock Exchange.

Bloomberg noted that demand for luxury sports cars remained strong among wealthy Ferrari customers despite rising prices, while ordinary, popular-priced automakers lost their ability to increase prices as the global economy tended to slow.

Bloomberg added that the stock compares in many ways with the shares of Europe’s major luxury goods companies, which generated a total return of 500% for their shareholders in Europe from 2015. During that period, the shares of automobile companies generated 50% returns for shareholders, including cash distributions.

Ferrari reported last month that its profits rose in the first quarter of the year, exceeding analysts’ expectations due to strong demand for luxury cars and increased prices.

The Netherlands-registered company said that its adjusted profit before tax, interest and depreciation rate rose during the first quarter of the current year to 537 million euros ($593 million), while the average forecast of analysts surveyed by Bloomberg was 509.4 million euros.