By increasing profits? Or by increasing the perceived value (not necessarily size) of profits. Ferrari are trying to transform themselves into a luxury fashion brand, rather than an automotive brand, and thereby increase their P/E ratio.
Camilleri, who took over from the late Sergio Marchionne in July, seeks to boost Ferrari’s appeal in a quest to catch up with the trading multiples of luxury goods companies like Hermes International. The luxury retailer trades at 23 times expected earnings before interest, tax, depreciation and amortization for 2020, compared with Ferrari at 16 times.
Where else might we see this? BHP transforming themselves into a technology company versus a mining company? ANZ becoming a data (unique and non-replicable) company instead of a bank (commoditised)?