Savvy investors learned long ago to buy stocks of outstanding companies regardless of the price. That notion helps you avoid trying to time the market, and it also enables you to buy a stock that appears expensive in the event that the price simply continues to rocket higher. Take Tesla, which has made many investors incredibly wealthy and has always appeared expensive according to valuation metrics.

Coincidently, while not the same as Tesla, another automotive stock that appears wildly expensive in the auto industry is still a buy: Ferrari (NYSE: RACE). Here are two reasons it's worth the valuation.

Before we get to the justification for Ferrari's lofty valuation, the following chart shows how expensive it is compared to traditional automakers.

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Source Fool.com