Ferrari (NYSE:RACE) shares have seen swings recently, catching the eye of investors watching the company’s performance. With its latest moves, Ferrari’s stock activity invites a closer look at its current pricing and recent returns.
Ferrari’s share price has taken investors on a wild ride recently, dipping 15.1% over the past month as momentum softened following a strong multi-year run. Despite the turbulence, longtime holders still enjoy an impressive 116% total shareholder return over three years.
If you’re curious about how other auto manufacturers are performing in this shifting landscape, it’s a great time to discover See the full list for free.
With shares pulling back after years of gains, investors are now asking whether Ferrari is undervalued amid recent volatility or if today’s price already reflects expectations for the brand’s future growth potential.
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Most Popular Narrative: 16.5% Undervalued
Ferrari’s narrative fair value of $477.93 stands notably above its latest close at $399.08, suggesting significant upside as viewed by closely watched forecasts. The contrast between these figures puts the spotlight on the ambitious outlook that supports this consensus.
Ferrari's expansion of infrastructure and product offerings, including the new e-building and paint shop for enhanced personalization, is expected to increase production flexibility, supporting revenue growth and improved net margins through operational efficiencies. The launch of six new models in 2025, including the anticipation of the Ferrari full electric, is likely to drive revenue growth, capturing both existing and new customers while expanding Ferrari's electrification journey.
What is powering this strong valuation view? The underlying blueprint hints at a future shaped by next-generation model launches, bold margin expansion, and aggressive financial targets. Curious which major forecasts drive this estimate, and where expectations might surprise? The full narrative unpacks the pivotal projections behind Ferrari’s price potential.
However, risks remain. Brand exclusivity could be diluted by rapid model launches, and supply chain pressures may squeeze profitability, challenging the current narrative.
Another View: Market Ratios Tell a Different Story
While consensus targets and narratives highlight upside, Ferrari’s current price-to-earnings ratio is 38x, which is more than twice the global auto industry average of 18.4x and far above its own fair ratio of 14.2x. This sizable gap signals that investors are already pricing in a premium for quality, brand, and future growth. However, such elevated expectations can bring increased volatility if results do not keep pace. Does this premium create excess valuation risk, or is Ferrari’s uniqueness worth the cost?
If you see Ferrari’s story unfolding differently, dive into the details and shape your own perspective. Building your personal thesis can take just minutes. Do it your way
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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.
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