Ferrari Forward P/E 32.32 and PEG 3.60 Contrast Allison Transmission’s 14.41 P/E
Ferrari holds a Zacks Rank #3 with forward P/E of 32.32, PEG ratio of 3.60 and P/B ratio of 19.16, earning a Value grade D. Allison Transmission has Zacks Rank #2, forward P/E of 14.41, PEG ratio of 0.83 and P/B ratio of 5.63, earning a Value grade A, making Ferrari a less attractive value option.
1. Zacks Rank Comparison
Ferrari holds a Zacks Rank of #3 (Hold), reflecting modest estimate revisions, while Allison Transmission carries a Rank #2 (Buy), indicating stronger upward earnings revisions and a more favorable near-term outlook.
2. Key Valuation Metrics
Ferrari’s forward P/E stands at 32.32 with a PEG ratio of 3.60 and P/B ratio of 19.16. In contrast, Allison Transmission’s forward P/E is 14.41, PEG 0.83 and P/B 5.63, signaling a markedly lower valuation base.
3. Value Grade Outcomes
These metrics translate into a Value grade D for Ferrari and a Value grade A for Allison Transmission, underscoring Ferrari’s premium pricing relative to book value and earnings versus Allison’s discounted levels.
4. Implications for Value Investors
With Allison Transmission’s stronger earnings outlook and more attractive valuation metrics, value investors may prefer Allison over Ferrari until Ferrari’s multiples contract or its growth outlook strengthens.