What Is Drawing Attention To Ferrari (BIT:RACE) Today?

Ferrari (BIT:RACE) has drawn attention after recent share performance data showed the stock down about 1.2% on the day, roughly flat over the month, and higher across the past 3 months.

At around €360.65 per share, Ferrari has seen short-term momentum cool after an 11.95% 90-day share price return, while the 1-year total shareholder return is down 9.76%. However, longer horizons show a 32.93% 3-year and 107.28% 5-year total shareholder return, which keeps the long-term story in focus.

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Ferrari’s share price has cooled after a strong 3 month run, which puts you on the classic fence: step in around €360 now, or wait for a cleaner valuation entry point?

Most Popular Narrative: 7% Undervalued

Ferrari's most followed narrative places fair value at about €388 per share, above the recent €360.65 close. This frames the current pullback as a valuation tension rather than a clear breakdown.

The ramp-up of high-margin, recurring revenue streams from brand sponsorships, lifestyle, and personalization, fueled by lifestyle activities, racing events, and growing global brand desirability, will further enhance margin accretion, drive resilient long-term earnings, and reduce reliance on car sales volume alone. Ongoing investments in innovation, for example electrification, new manufacturing or paint facilities, and cross-sector technology transfers like the Hypersail project, both future-proof the business and leverage secular trends towards luxury experiential goods, likely resulting in higher capital efficiency and supporting sustainable earnings growth over the next cycle.

See why 57 investors see Ferrari as 7% undervalued.

That story is built on a discount rate of 13.22% and a view that Ferrari's brand may continue converting prestige into earnings, while also acknowledging execution and electrification risks that could alter the path to that fair value.

Result: Fair Value of €388.02 (UNDERVALUED)

Still, the Ferrari story can be knocked off course if electrification spending squeezes profitability or if changing luxury demand weakens pricing power and order visibility.

Find out about the key risks to this Ferrari narrative.

Another View: Ferrari On Earnings Multiples

The DCF lens points to Ferrari being 7% undervalued around €388 per share, but the earnings multiple tells a very different story. The stock trades on a P/E of 42.4x, against 19.8x for peers and 13.8x for the global auto industry, while the fair ratio sits at 22.3x. That gap implies investors are paying a hefty premium for quality and brand, so the key question is whether you think that premium can stay this high over time.

See what the numbers say about this price — find out in our valuation breakdown.

Next Steps

Mixed signals on Ferrari so far. If you want to move quickly, stress test your own view against both the upside and the red flags by checking 2 key rewards and 1 important warning sign.

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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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