Here's My Brilliant and Weird Exotic Car Pricing Theory

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Tune in as I share my brilliant and weird exotic car pricing theory! Share your own theories in the comments!

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DOUGSCORE CHART:

CHAPTERS:
00:00 CARS & BIDS!!!
00:13 Introduction
00:50 Market Cap Defined
02:40 One of the Greatest Ferraris of All Time
04:20 Lots of Cars Fall Into This Price Range
06:31 The Highest Cap In My List
08:37 These Cars Surprised Me
09:54 A Lambo That I Think Is Still Too Low
11:42 Is It Really Worth This Much?!
14:29 I Can't Believe This Bugatti Is This Cheap!
17:01 Outro

#dougdemuro #cars

[cbett]

the only critique i have is it's easy to see how many of a car was made - but not how many still exist and weren't wrecked/destroyed

[Nasatu]

Doug is the kind of guy to come up with another Doug Score.

[danielc]

Excellent theory. One flaw, is market Cap should be calculated based on total cars available today, not what originally built. I appreciate that's impossible to have records of though. Also should consider numbers available for sale, which as an example would be if people were to gobble up a car and hold in collection reducing the number on the market, the price will increase to adjust

[BigSwagThaLionTamer]

As a finance professional this is a super interesting idea. No idea how valuable it would be but really fun to think about

[not_super_street]

This is actually a really decent idea for a video, people talk about this concept offhanded sometimes but it’s nice to get like a big picture of it

[ButiHaveNoArms]

With 1, 312, 500 Corollas made in 2021, and an average price of $20, 000, the 2021 Corolla has a market cap of over $26 Billion

[XxBigYenYensxX]

Fascinating insight, Doug. Problem is treating these cars like securities just increases the incentive for people to buy and never drive these cars, and generally take all the enjoyment out of the ownership experience

[danieltemple]

The fact that you have your own theory/perspective is cool. Having the fortitude and humility to present it like this is even cooler.

[ruk--]

I get the impression that Doug is struggling to find ways to use his spare time.

[willmtaylor]

Hey Doug, if you read comments, this absolutely makes sense, but I think you're missing 1 critical element--TIME. As time progresses, the values drastically change--teens who thought they were cool get money, high performance cars get wrecked and become more scarce, etc. etc. etc.

SO I think the 1 unaccounted for variant in your equation is TIME.

[davidbell]

Thing with the Countach is they are so visible I honestly thought there were several times as many as there are. The Idea that they are so much rarer than 300 SLs is insane, you'd imagine there were 10 countach's for every SL on the visibility scale. And if something appears more common its price will be lower. Wonder how it would look if you based the market cap based on the perceived rarity

[DanielGazineu]

I think the reason why McLarens don't get to the same market cap as other similar cars is because there are way too many different models in very limited runs, released in a short period of time. They likely compete with each other for market cap. If you were to sum the market cap for all special McLarens released in the last decade, you'd likely get to ~$1.6B

[RobMrSpaghetti]

Doug the type of guy to see a donut box, reaching for one while saying “Don’t mind if I do”

[alexdiezg]

You know you're in a different league when Koenigsegg and Pagani aren't even mentioned

[usonian]

Extremely interesting take on how scarcity relates to value. Love the thinking, Doug.

[pierredebug]

You can also value the market cap of your street and see if the income from the residents can support it.

[lietors]

Interesting, I think you should do a scatterplot so see how the correlation is between market cap and units made. I think this would give valuable information on difference between makes on how they are performing compared to the mean.

[hreb]

Obligatory technical nitpicking: The "capitalization" part of "market capitalization" comes from the fact that you are describing the total value of a company or other entity with cash flows. If you're just talking about a collectable or some other asset (ahem, crypto) all you have is a "total market value". Or if you're talking about a currency, the term is "money supply" (e.g. M2, etc.).

[christiandulaney]

Doug! Incredible "think piece"!! This is super interesting. This is the perfect video to watch on a Sunday morning while the first rush of caffeine hits my system. Beautiful sunny fall morning, and Doug Demuro providing unique, inspired content

[MonsieurAuContraire]

Interesting thought experiment here especially considering you can use this idea to work back from to get what you may expect a car's top value will be. Like say for the Countach, assuming Doug is right here that it's under valued, if it were to hit that norm of $1.6bn would mean individually they would be around $800, 000 per. This is a great way to fuel further speculation for sure!