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    Ferrari (BIT:RACE), What Is Behind The Fresh Attention?

    Simply Wall St·10/19/2026 14:38:58
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    Ferrari (BIT:RACE) has drawn fresh attention after announcing its largest aerodynamic upgrade for the SF-26 at the United States Grand Prix in Austin, the final major package for this car.

    Against this backdrop, Ferrari’s share price has built steady momentum, with a 9.65% 90 day share price return and a 12.66% year to date share price return. The 5 year total shareholder return of 85.77% points to strong longer term compounding.

    Spot 613 high quality undiscovered gems that, like Ferrari, pair a powerful brand with growing earnings and aim to turn niche strength into long term compounding.

    Ferrari’s latest F1 upgrade and the share price climb have arrived together, which leaves investors with a fork in the road. Pay up after this move, or hold fire and wait for a cheaper shot on goal?

    Most Popular Narrative: 8% Undervalued

    Ferrari last closed at €356.35, while the most followed narrative anchors fair value around €388.02, leaving a modest valuation gap that hinges on how durable earnings and brand strength really are.

    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.

    See why 59 investors see Ferrari as 8% undervalued.

    Result: Fair Value of €388.02 (UNDERVALUED)

    Still, Ferrari’s slow and uncertain shift to hybrids and EVs, together with changing luxury spending patterns, could pressure pricing power and long term demand.

    Find out about the key risks to this Ferrari narrative.

    Another View: Ferrari Multiples Look Stretched

    Ferrari might look modestly undervalued on fair value narratives around €388, yet its current P/E of 41.9x tells a tougher story. The stock trades well above the global auto industry at 13.6x, peers at 24x, and even its own fair ratio of 21.2x, which lifts valuation risk if sentiment cools.

    That gap between today’s P/E and the fair ratio is wide, so buyers are paying a premium for quality, brand and consistency. The question is simple. Are you comfortable paying almost double the ratio the market could move towards if expectations soften, or do you prefer to wait for a reset in the multiple?

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

    BIT:RACE P/E Ratio as at Oct 2026
    BIT:RACE P/E Ratio as at Oct 2026

    Next Steps

    Mixed signals on Ferrari valuation and risk can pull you in either direction, so move quickly to study the full picture of 2 key rewards and 1 important warning sign

    Looking for more investment ideas beyond Ferrari?

    If the Ferrari story has sharpened your focus on quality and price, consider widening your search now before the next wave of opportunities moves without you.

    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.