Exor offers cheap, discounted Ferrari exposure
The bull case argued for Exor is that it acts as a highly discounted proxy for Ferrari, allowing investors to buy its premium assets at a 60% discount to net asset value.
The argument
The speakers noted that Exor's net asset value is around €33 billion while its market cap is only €13 billion. Its 20% stake in Ferrari alone is worth nearly the entire market cap of Exor, meaning investors effectively get its other holdings - such as Christian Louboutin, Stellantis, and CNH - for free.
The thesis, stress-tested
✓ What validates it
- ✓Narrowing of the NAV discount from 60% toward the historical 20% to 30% range
- ✓Aggressive execution of share buybacks via reverse Dutch auctions
▸ Risks discussed
- ▸Management could destroy value by allocating cash to struggling, cyclical legacy assets like Stellantis or CNH
- ▸Further material reductions in the core Ferrari stake without high-conviction reinvestment would break the thesis
Hear it yourself
"And so that means you're buying those assets at a 60% discount to what they're actually worth on paper in the public markets. And so if you just look at the Ferrari stake alone, which is about two fifths of Exer's total net assets, it's worth almost the entire market cap of Exeter because of that 60% discount."
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