Investors penalize RACE for slower long-term growth forecasts and tepid reception of its first electric vehicle.
Ferrari’s stock has declined 33% since its July 2025 high, pressured by a capital markets presentation in October that projected slower growth through 2030. The market also reacted coolly to the launch of its first fully electric vehicle, the Luce.
Despite the pullback, Ferrari’s revenue and diluted earnings per share rose 83% and 110%, respectively, from Q1 2021 to Q1 2026. The company maintains a trailing five-year average operating margin of 27.2%, supported by strong pricing power and brand demand.
RACE currently trades at a price-to-earnings ratio of 33.4, an 18% discount to its historical average and a 34% contraction over the past year. The valuation reflects skepticism but may present a long-term opportunity for investors.