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    Ferrari (BIT:RACE) Hits Luce Target Early, Is The Upside Already Priced In?

    Simply Wall St·07/30/2026 17:20:21
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    Ferrari (BIT:RACE) is back in focus after reaching its 2026 sales target for the Luce electric vehicle ahead of schedule, supported by strong demand from China and an improved full year earnings outlook.

    See our latest analysis for Ferrari.

    The Luce launch and upgraded 2026 outlook arrive after a period where Ferrari’s share price return has been mixed. The stock recorded a 90 day gain of 15.83%, but its 1 year total shareholder return declined 21.19%, even though the 5 year total shareholder return is 98.2%.

    If this shift in sentiment around Ferrari has your attention, it can be a good moment to widen your watchlist and check out 107 top founder-led companies

    Ferrari has just hit an early Luce milestone and lifted 2026 guidance, yet the stock is still below its 1 year high. Does the current valuation still offer sufficient potential to justify the risk from this point?

    Most Popular Narrative: 8.4% Undervalued

    Ferrari last closed at €339.8 compared with a most followed fair value estimate of €371.03. That gap reflects a narrative built on electrification, brand power and premium margins.

    Ferrari's imminent launch of its all-electric Elettrica and increased focus on hybrid models positions the company to capture demand from eco-conscious affluent buyers as well as comply with tightening global emissions regulations, which may support long-term revenue and net margin resilience as sustainability and premiumization trends develop.

    Read the complete narrative.

    Want to see what sits behind that higher fair value for Ferrari? The narrative focuses on steady growth, firm margins and a rich earnings multiple that rivals market favourites.

    Result: Fair Value of €371.03 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, Ferrari’s slower electrification path and reliance on new model launches mean regulatory shifts or weaker demand for ultra high net worth buyers could quickly challenge that upbeat narrative.

    Find out about the key risks to this Ferrari narrative.

    Another View On Ferrari Using Market Ratios

    The first narrative suggests Ferrari is 8.4% below fair value at €371.03. However, the market ratios tell a different story. Ferrari trades on a P/E of 40.9x, compared with a fair ratio of 21.7x, a peer average of 27.6x and a global auto average of 13.2x.

    That gap points to a lot of optimism already in the price and raises the risk that any disappointment on growth or margins could hit the stock harder than the narrative implies. Which version of Ferrari’s story feels closer to your own expectations?

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

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

    Next Steps

    If this mix of optimism and concern around Ferrari resonates with you, it can be helpful to review the numbers quickly and decide where you stand. A good place to start is by checking the 2 key rewards

    Looking for more investment ideas beyond Ferrari?

    Do not stop with Ferrari. Use the Simply Wall Street screener to spot other stocks that fit your style and keep your watchlist working harder for 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.