Is Ferrari (NYSE:RACE) Pricing Too Much Growth After Recent Share Price Weakness

Simply Wall St.05:44

If you have ever wondered whether paying up for Ferrari stock still makes sense, this article will walk through what the current price might be implying about future expectations. Ferrari shares most ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2608707381?lang=en_US&edition=fundamental","thumbnail":"https://images.simplywall.st/asset/company-cover/280003133-main-header/1756256225801","is_english":true,"pubTime":"2026-02-04 05:44","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2608707381","market":"us","top_or_hot":-1,"title":"Is Ferrari (NYSE:RACE) Pricing Too Much Growth After Recent Share Price Weakness","media":"Simply Wall St.","content":"<div>\n<p>If you have ever wondered whether paying up for Ferrari stock still makes sense, this article will walk through what the current price might be implying about future expectations. Ferrari shares most ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/automobiles/nyse-race/ferrari/news/is-ferrari-nyserace-pricing-too-much-growth-after-recent-sha\">Source Link</a>\n\n</div>\n","source":"simplywall_highlight","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 (NYSE:RACE) Pricing Too Much Growth After Recent Share Price Weakness</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nIs Ferrari (NYSE:RACE) Pricing Too Much Growth After Recent Share Price Weakness\n</h2>\n\n<h4 class=\"meta\">\n\n\n2026-02-04 05:44 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://simplywall.st/stocks/us/automobiles/nyse-race/ferrari/news/is-ferrari-nyserace-pricing-too-much-growth-after-recent-sha><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>If you have ever wondered whether paying up for Ferrari stock still makes sense, this article will walk through what the current price might be implying about future expectations. Ferrari shares most ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/automobiles/nyse-race/ferrari/news/is-ferrari-nyserace-pricing-too-much-growth-after-recent-sha\">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":"BK4585","symbol_name":"ETF&股票定投概念","start_time":0,"source_url":"https://simplywall.st/stocks/us/automobiles/nyse-race/ferrari/news/is-ferrari-nyserace-pricing-too-much-growth-after-recent-sha","article_id":"2608707381","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/280003133-main-header/1756256225801"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/automobiles/nyse-race/ferrari/news/is-ferrari-nyserace-pricing-too-much-growth-after-recent-sha","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2608707381","pubTimestamp":1770155071,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you have ever wondered whether paying up for Ferrari stock still makes sense, this article will walk through what the current price might be implying about future expectations.\nFerrari shares most recently closed at US$336.33, with returns of a 1.2% decline over the last 7 days, a 9.6% decline over the last 30 days, a 9.6% decline year to date, gains of 31.5% over 3 years and 66.6% over 5 years, and a 21.0% decline over the last year.\nThose mixed returns have kept interest in Ferrari...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK4585":"ETF&股票定投概念","BK4548":"巴美列捷福持仓","RACE":"法拉利","NYSE":"纽交所","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","BK4555":"新能源车","BK4099":"汽车制造商","BK4588":"碎股"},"translate_title":"法拉利（纽约证券交易所股票代码：RACE）在近期股价疲软后是否定价过高增长","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RACE":1.5,"NYSE":1.5,"DCF":1},"content_text":"If you have ever wondered whether paying up for Ferrari stock still makes sense, this article will walk through what the current price might be implying about future expectations. Ferrari shares most recently closed at US$336.33, with returns of a 1.2% decline over the last 7 days, a 9.6% decline over the last 30 days, a 9.6% decline year to date, gains of 31.5% over 3 years and 66.6% over 5 years, and a 21.0% decline over the last year. Those mixed returns have kept interest in Ferrari high, as investors weigh its reputation and long term share price record against more recent price pressure. This article was prompted to provide ongoing coverage of Ferrari so you can see how different valuation methods line up with where the stock trades today. On Simply Wall St's valuation checks, Ferrari scores a 1 out of 6. This means it screens as undervalued on only one of six metrics, so we will look at what various valuation methods say about that and then finish with a way to think about value that goes beyond just the numbers.  Ferrari scores just 1/6 on our valuation checks. See what other red flags we found in the full valuation breakdown. AdvertisementApproach 1: Ferrari Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model takes estimates of the cash Ferrari could generate in the future and discounts those cash flows back to today to arrive at an estimate of what the entire business might be worth right now. Ferrari’s latest twelve month free cash flow is about €1,278.97 million. Using a 2 Stage Free Cash Flow to Equity model, analysts and extrapolated estimates project free cash flow rising to about €2,610.39 million in 2035, with interim years such as 2030 at €2,094.67 million. Simply Wall St uses analyst forecasts where available, then extends the series using its own growth assumptions for the later years. When all those projected cash flows are discounted back using the model’s rate, the estimated intrinsic value comes out at about €107.23 per share. Against the recent share price of US$336.33, this implies the stock is very expensive relative to this particular DCF model, with an intrinsic discount that suggests Ferrari is 213.7% overvalued. Result: OVERVALUED Our Discounted Cash Flow (DCF) analysis suggests Ferrari may be overvalued by 213.7%. Discover 876 undervalued stocks or create your own screener to find better value opportunities. RACE Discounted Cash Flow as at Feb 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Ferrari. Approach 2: Ferrari Price vs Earnings (P/E) For a profitable company like Ferrari, the P/E ratio is a useful shorthand because it connects what you pay today with the earnings the business is already generating. It gives you a quick sense of how many dollars investors are willing to pay for each dollar of current earnings. What counts as a reasonable P/E depends a lot on growth expectations and risk. Higher expected earnings growth or lower perceived risk can support a higher P/E, while slower growth or higher risk usually call for a lower, more cautious multiple. Ferrari currently trades on a P/E of 31.52x. That sits well above the Auto industry average P/E of 17.40x and above the peer average of 20.45x. Simply Wall St also calculates a Fair Ratio of 17.67x, which is its proprietary view of what a suitable P/E might be after considering factors such as earnings growth, industry, profit margin, market cap and company specific risks. This Fair Ratio aims to be more tailored than a simple comparison with peers or the industry, because it adjusts for Ferrari’s own characteristics rather than assuming all Auto stocks should trade on similar multiples. Set against the current 31.52x P/E, the Fair Ratio of 17.67x suggests the shares are pricing in a richer valuation than that model implies. Result: OVERVALUED NYSE:RACE P/E Ratio as at Feb 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1425 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Ferrari Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives, which simply means writing the story you believe about Ferrari and tying that story directly to the numbers you see on screen. A Narrative is your own view of Ferrari’s future, expressed through assumptions about fair value, revenue, earnings and margins. This means you are not just looking at ratios, you are explaining why those numbers make sense to you. On Simply Wall St, Narratives sit in the Community page and connect three pieces: the company’s story, a forecast that reflects that story, and a fair value that you can compare with the current share price to help you decide whether you see Ferrari as above or below your own estimate. Because Narratives update when new information like earnings or news arrives, you can quickly see how your fair value changes over time. For Ferrari, that might mean one investor’s optimistic Narrative supports a higher fair value while another investor’s more cautious Narrative supports a lower fair value, even though they are looking at the same company. Do you think there's more to the story for Ferrari? Head over to our Community to see what others are saying! NYSE:RACE 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    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\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"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,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","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/2608707381","isCrawlerRequest":true}