Ferrari Fair Value
RA
The fair market value of RACE stock is 371.31 USD. Relative to the market price of 474.98 USD Ferrari NV is overvalued by 18.8%
Eyestock's quantitative valuation approach is based on the method of estimating historical multipliers. To determine whether a stock is undervalued, we compare its current price to our estimated of fair value. The more undervalued a stock is, the more investment is profitable.
Fair Relative Value
Ferrari Valuation
Current RACE share ticker price is 474.98 USD.
The fair value level of 371.31 USD can be considered as an effective entry point for long-term investors to start investing in RACE stock. For a more in-depth assessment, we provide a minimum value that can be used to increase a stock position and a maximum one that can be used to reduce it.
Price chart is not available
Current market price
Current price is 22% higher its fair value
Current price is 33% higher its minimum value
Current price is 2% higher its maximum value
Market price:
RACE stock is overvalued
It means the current price may concern as a Risky Entry Point
Ferrari NV Stock Valuation Calculator
How do we value a stock?
As fair value, we use the product of the median Price-to-earnings ratios at the end of each reporting period for the last 5 years and earnings per share for the last 12 months. By analogy with the fair value, we calculate the maximum and minimum ones using the corresponding P/E extremums.
1
Maximum P/E over 5 years
58.44
2
Median P/E over 5 years
46.65
3
Minimum P/E over 5 years
39.97
4
Earning per share (last 12 months)
7.15 EUR
Maximum value
1
x
4
=
465.16 USD
Fair value
2
x
4
=
371.31 USD
Minimum value
3
x
4
=
318.12 USD
Ferrari NV price metrics
25.4
Annual return (geometric mean)
26.6
Risk (standard deviation) of returns
β
1.0
Beta (volatility compared to market)