Market Pulse50Neutral

Ferrari N.V.Opportunity Rank #36(RACE) Intrinsic Value & DCF Analysis (2026)

Current Price

$329.16

Last updated: Mar 24, 2026

Price vs Intrinsic Value

$329.16
Price
$953.99
Intrinsic Value
Undervalued by 190%MOS: $763.19

Fundamental Score

83/100
Bullish

Weighted across 6 signals

Narrative Score

53/100
Weak

No change vs previous

The intrinsic value of Ferrari N.V. (RACE) is estimated at $953.99 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $329.16, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.19% long-term growth rate and an 8.50% discount rate (calculated: 7.42%), reflecting expected future free cash flow and cost of capital.

The intrinsic value of Ferrari N.V. (RACE) is estimated at $953.99 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $329.16, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 9.19% long-term growth rate and an 8.50% discount rate (calculated: 7.42%), reflecting expected future free cash flow and cost of capital.

Valuation Details

$953.99
189.83% upside
20% margin of safety: $763.19
Years: 10Growth Rate: 9.19%
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Capital Efficiency

Average Quarterly ROIC
8.13%
Cost of Capital (estimated)10%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.

Fundamental Details

83/100
BullishWeighted across 6 signals
DCF Discount
189.8% discount to price
100
FCF Yield
11.3% trailing FCF yield
100
ROIC vs WACC
ROIC 8.1% vs WACC 10.0% (0.8x)
41
Net Debt / FCF
0.2x net debt to FCF
96
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
29.8% 5Y FCF CAGR
100
Strengths lead the score: DCF Discount, FCF Yield.

Narrative Details

53/100
Weak
Vs 6-Month Baseline:Low (3rd pct)Weighted across 5 recent drivers
Trend: StableConfidence: 85%Updated: 1h ago
Sources: 61 (59 News · 2 Analyst)
Drivers(last 30 days)
42 news sentiment+0.2
14 regulatory scrutiny+0.0
2 earnings beat+0.0
Upgrade headlines+0.0
2 analyst reiterations0.0

Investment Coach

Updated 15h ago
BUYConfidence: 62%
Thesis
Ferrari N.V. is significantly undervalued with an estimated fair value nearly 198% above its current price, supported by strong fundamentals including a high free cash flow yield and robust buyback activity. Despite trailing its cost of capital, the company's healthy free cash flow growth and bullish fundamental score suggest attractive long-term upside potential.
Key Risk
The key risk is Ferrari's return on invested capital remaining below its weighted average cost of capital, which could pressure valuation and returns.
Signals To Watch
  • Monitor whether valuation discount remains above 10%.
  • Track ROIC versus WACC spread for sustained improvement.
  • Follow narrative trend for meaningful shifts in the score direction.
Ask the Coach - Available with
Historical Growth Rates
Free Cash Flow- - -Trend CAGR: 9.19%5 Year CAGR: 23.06%

Free Cash Flow (in millions)

TTM20252024202320222021202020192018201720162015201420132012
$6,609$6,609$3,380$2,997$2,559$2,341$1,794$1,922$1,823$1,222$1,562$1,232$876$840$836

How Intrinziq Estimates Fair Value

Intrinziq estimates Ferrari N.V.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Ferrari N.V.Consumer Cyclical

Ferrari N.V., through its subsidiaries, designs, engineers, produces, and sells luxury performance sports cars. The company offers sports, GT, and special series cars; limited edition hyper cars; one-off and track cars; and Icona cars. It also provides racing cars, and spare parts and engines, as well as after sales, repair, maintenance, and restoration services for cars. In addition, the company licenses its Ferrari brand to various producers and retailers of luxury and lifestyle goods; Ferrari World, a theme park in Abu Dhabi, the United Arab Emirates; and Ferrari Land Portaventura, a theme park in Europe. Further, it provides direct or indirect finance and leasing services to retail clients and dealers; manages racetracks, as well as owns and manages two museums in Maranello and Modena, Italy; and develops and sells a line of apparel and accessories through its monobrand stores. As of December 31, 2021, it had a total of 30 retail Ferrari stores, including 14 franchised stores and 16 owned stores. The company also sells its products through a network of 172 authorized dealers operating 191 points of sale worldwide, as well as through its website, store.ferrari.com. Ferrari N.V. was founded in 1947 and is headquartered in Maranello, Italy.