Is Ferrari N.V. (NYSE:RACE) Potentially Undervalued?

Simply Wall St.12-14

Ferrari N.V. (NYSE:RACE) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$490 at one point, and dropping to the lows of US$427. Some...

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Some...</p>\n\n<a href=\"https://finance.yahoo.com/news/ferrari-n-v-nyse-race-130014423.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Is Ferrari N.V. 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(NYSE:RACE) Potentially Undervalued?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-14 21:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/ferrari-n-v-nyse-race-130014423.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Ferrari N.V. (NYSE:RACE) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$490 at one point, and dropping to the lows of US$427. Some...</p>\n\n<a href=\"https://finance.yahoo.com/news/ferrari-n-v-nyse-race-130014423.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RACE","symbol_name":"法拉利","start_time":0,"source_url":"https://finance.yahoo.com/news/ferrari-n-v-nyse-race-130014423.html","article_id":"2491614515","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/N4lVz32CwOX7hfOKNOczsA--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/7665404e4784395f2fabaf0da7c7079d"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2491614515","pubTimestamp":1734181214,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Ferrari N.V.  received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$490 at one point, and dropping to the lows of US$427. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Ferrari's current trading price of US$454 reflective of the actual value of the large-cap?Or is it currently undervalued, providing us with the opportunity to buy?Let’s take a look at Ferrari’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.If you’ve been keeping tabs on RACE for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from misp","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"RACE":"法拉利","BK4099":"汽车制造商","BK4548":"巴美列捷福持仓","NYSE":"纽交所","BK4585":"ETF&股票定投概念","BK4588":"碎股","BK4555":"新能源车"},"translate_title":"法拉利N.V.（纽约证券交易所股票代码：RACE）是否可能被低估？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"NYSE":1,"RACE":1},"content_text":"Ferrari N.V. (NYSE:RACE) received a lot of attention from a substantial price movement on the NYSE over the last few months, increasing to US$490 at one point, and dropping to the lows of US$427. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Ferrari's current trading price of US$454 reflective of the actual value of the large-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let’s take a look at Ferrari’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change. \n See our latest analysis for Ferrari \n Is Ferrari Still Cheap? \n According to our price multiple model, where we compare the company's price-to-earnings ratio to the industry average, the stock currently looks expensive. We’ve used the price-to-earnings ratio in this instance because there’s not enough visibility to forecast its cash flows. The stock’s ratio of 54.17x is currently well-above the industry average of 21.18x, meaning that it is trading at a more expensive price relative to its peers. Furthermore, Ferrari’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. If you believe the share price should eventually reach levels around its industry peers, a low beta could suggest it is unlikely to rapidly do so anytime soon, and once it’s there, it may be hard to fall back down into an attractive buying range. \n What kind of growth will Ferrari generate? \n\n\n\n  NYSE:RACE Earnings and Revenue Growth December 14th 2024\n \n\n Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 41% over the next couple of years, the future seems bright for Ferrari. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. \nWhat This Means For You\nAre you a shareholder? RACE’s optimistic future growth appears to have been factored into the current share price, with shares trading above industry price multiples. At this current price, shareholders may be asking a different question – should I sell? If you believe RACE should trade below its current price, selling high and buying it back up again when its price falls towards the industry PE ratio can be profitable. But before you make this decision, take a look at whether its fundamentals have changed. \nAre you a potential investor? If you’ve been keeping tabs on RACE for some time, now may not be the best time to enter into the stock. The price has surpassed its industry peers, which means it is likely that there is no more upside from mispricing. However, the optimistic prospect is encouraging for RACE, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop. \n So while earnings quality is important, it's equally important to consider the risks facing Ferrari at this point in time. You'd be interested to know, that we found 1 warning sign for Ferrari and you'll want to know about it. \n If you are no longer interested in Ferrari, you can use our free platform to see our list of over 50 other stocks with a high growth potential. \nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.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.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2491614515"}