Ferrari (BIT:RACE) Could Be 6% Undervalued Following Its 2026 Guidance Upgrade
Ferrari (BIT:RACE) is back in focus after raising its 2026 earnings guidance and reporting higher quarterly sales and net income, a combination that has coincided with fresh strength in the stock.
See our latest analysis for Ferrari.
Ferrari's recent guidance upgrade and solid quarterly figures have come alongside a 90 day share price return of 25.59% and a 30 day share price return of 7.43%. However, the 1 year total shareholder return has declined 5.83%, which suggests momentum has picked up in the short term after a weaker year for holders.
If Ferrari's move has you rethinking the broader auto and luxury space, this can be a useful moment to broaden your search and check out 101 top founder-led companies
After Ferrari’s guidance upgrade, buyback activity, and sharp 90-day move, the key issue now is price. Does the current valuation still leave enough upside to justify the risks you would be taking on from here?
Most Popular Narrative: 6.3% Undervalued
Ferrari’s most followed narrative currently points to a fair value close to €380 compared with a last close of €355.60. This frames the recent rally as still leaving some upside according to that view.
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 and to comply with tightening global emissions regulations, likely supporting long-term revenue growth and net margin resilience as sustainability and premiumization trends accelerate.
Want to see what sits behind that premium tag on Ferrari? The narrative leans on steady expansion in revenue, firmer profit margins, and a rich future earnings multiple.
Result: Fair Value of €379.56 (UNDERVALUED)
Have a read of the narrative in full and understand what's behind the forecasts.
However, Ferrari’s story can change quickly if demand for new models softens or if higher input costs and currency swings begin to pressure margins.
Find out about the key risks to this Ferrari narrative.
Another View: Ferrari’s Rich P/E Ratio
The narrative fair value for Ferrari sits around €380, which suggests some upside from the current share price of €355.60. The P/E ratio tells a very different story. Ferrari trades on 41.8x earnings compared with 13.4x for the global auto industry and 27.9x for peers, while the fair ratio is 22x.
This gap implies investors are already paying a heavy premium for Ferrari’s brand strength and forecast growth. If sentiment cools or results disappoint, that premium has room to compress. Are you comfortable with how much of your thesis rests on that higher multiple holding up?
See what the numbers say about this price — find out in our valuation breakdown.
Next Steps
Does the mix of optimism and caution around Ferrari line up with your own view, or does it feel stretched? Take a closer look at the data, weigh the upside against the concerns, and see how the balance of 2 key rewards and 1 important warning sign
Looking for more investment ideas beyond Ferrari?
If Ferrari has sharpened your focus, do not stop here. Use this momentum to explore a broader range of opportunities so your portfolio is not missing potential standouts.
- Target quality at a discount by checking companies on the 259 high quality undervalued stocks that combine stronger fundamentals with prices that may not fully reflect them yet.
- Strengthen your income layer and review stocks in the 440 dividend fortresses that pair higher yields with an emphasis on resilience.
- Dial down portfolio risk and weigh ideas from the 297 resilient stocks with low risk scores that screen for sturdier balance sheets and steadier business profiles.
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