Ferrari (NYSE:RACE) is back in focus after its recent share price move, with the stock closing at $414.85 on 13 August 2026. Investors are reassessing the company’s valuation and recent performance metrics.
See our latest analysis for Ferrari.
For context, Ferrari’s recent 1 month share price return of 10.41% and 3 month share price return of 29.16% point to building momentum, even though the 1 year total shareholder return declined 8.88% and the 5 year total shareholder return sits at 101.54%.
If you want to see what else fits a high quality luxury or premium positioning, it can be useful to broaden your search with the 20 top founder-led companies
After Ferrari’s strong recent share price move, the real tension now sits between the possibility of further upside ahead and the likelihood that much of the gain has already been captured. The valuation numbers help frame which side appears more convincing.
Most Popular Ferrari Narrative: 6% Undervalued
Ferrari’s most followed narrative currently anchors fair value at about $441 per share, compared with the recent $414.85 close. This frames the latest move as still leaving a modest gap.
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.
Want to understand why that fair value sits above today’s share price? The narrative leans heavily on steady revenue growth, firmer margins, and a premium earnings multiple. The mix of new models, personalization, and electrification is central to those assumptions. The key is how these ingredients combine in the cash flow forecasts.
Result: Fair Value of $441.22 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, investors also need to weigh risks such as possible brand dilution from multiple model launches and supply chain pressures that could affect Ferrari’s pricing power and margins.
Find out about the key risks to this Ferrari narrative.
Another View On Ferrari’s Valuation
The most popular Ferrari narrative points to a fair value of about $441 per share, which implies the stock is modestly undervalued. The earnings based picture looks very different though. Ferrari trades on a P/E of 42x compared with 14.4x for the global auto industry and 23.6x for peers.
The P/E also sits well above a fair ratio of 18.1x. This is the level the market could move toward if enthusiasm fades. That gap represents valuation risk rather than a clear opportunity. The question is whether Ferrari can keep justifying such a premium multiple for long.
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Given the mixed signals around Ferrari’s premium valuation and recent share price move, it can be helpful to review the full risk reward balance for yourself. To see that balance more clearly, take a closer look at the 2 key rewards and 1 important warning sign
Looking for more investment ideas beyond Ferrari?
If Ferrari’s story has you thinking more broadly about your portfolio, this can be a good moment to scan other high quality opportunities before they potentially move out of reach.
- Target potential long term compounders by sorting companies with steady fundamentals using the 50 high quality undervalued stocks.
- Strengthen your income stream by focusing on companies with reliable payouts through the 10 dividend fortresses.
- Reduce portfolio stress by hunting for companies with sturdier finances and lower risk scores via the 83 resilient stocks with low risk scores.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com