Hermès: Premium Brand, Less Premium Valuation

Impact · against what's priced in

The article provides a bullish valuation case for Hermès but offers no actionable catalyst for Ferrari. For Ferrari, the comparison to Hermès merely reinforces the luxury brand status the market has already fully priced into its valuation.

RACE+0.00

Already priced in

The price assumes

The current 29.3% operating margin and 51.7% gross margin, which already treat Ferrari as a luxury house rather than a car maker.

The author's comparison of Ferrari to Hermès as a master of brand scarcity confirms the luxury house positioning the market already assumes in its current margins and multiple.

What RACE's price assumes · Sep 1

• valuation
• RACE
• RMS
• china exposure
• consumer discretionary
• dcf
• france
• luxury goods
• pricing power

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