Ferrari NVRACE +1.13%94 ROE % is 41.26% as of Mar. 2026, which is 9% below its 10-year median of 45.22. GuruFocus rates RACE with a GF Score™ of 94/100 and a GF Value™ of $493.30 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,308 Vehicles & Parts companies, Ferrari NV ranks better than 97.71% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Ferrari NV's annualized net income for the quarter that ended in Mar. 2026 was $1,909 Mil. Ferrari NV's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $4,627 Mil. Therefore, Ferrari NV's annualized ROE % for the quarter that ended in Mar. 2026 was 41.26%.
The historical rank and industry rank for Ferrari NV's ROE % or its related term are showing as below:
RACE'
s ROE % Range Over the Past 10 Years
Min: 37.22 Med: 45.22 Max: 265.95
Current: 42.41
During the past 13 years, Ferrari NV's highest ROE % was 265.95%. The lowest was 37.22%. And the median was 45.22%.
RACE's ROE % is ranked better than 97.71% of 1308
companies
in the Vehicles & Parts industry
Industry Median: 6.62
vs RACE: 42.41
Ferrari NV (NYSE:RACE) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Ferrari NV ROE % Related Terms
Ferrari NV ROE % Historical Data
* Premium members only.
The historical data trend for Ferrari NV's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Auto Manufacturers subindustry, Ferrari NV's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Ferrari NV ROE % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Ferrari NV's ROE % distribution charts can be found below:
* The bar in red indicates where Ferrari NV's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Ferrari NV (RACE) has a ROE % of 41.26% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ferrari NV and its competitors. This is near median its historical median of 45.22. Over the past decade, Ferrari NV's ROE % has ranged from 37.22 to 265.95. According to the industry distribution chart, Ferrari NV ranks #30 out of 1308 companies in the Vehicles & Parts industry, placing it in the top 2.3%.
Is Ferrari NV's ROE % too high?
Ferrari NV's current ROE % of 41.26% is near median its 10-year median of 45.22. Over the past 10 years, this metric has ranged from a low of 37.22 to a high of 265.95. The Vehicles & Parts industry median ROE % is 6.62. Ferrari NV's value of 41.26% is 523.3% above this industry median. Based on the distribution chart, Ferrari NV ranks #30 out of 1308 companies in the Vehicles & Parts industry, which is in the top quartile — a strong position relative to peers. Overall, Ferrari NV has a GF Score™ of 94/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Ferrari NV's ROE % compare to TSLA and GM?
According to the Vehicles & Parts industry distribution chart, Ferrari NV ranks #30 out of 1308 companies for ROE %. This places Ferrari NV in the top 2% of its industry — outperforming the majority of peers. The industry median ROE % is 6.62. Ferrari NV's value of 41.26% is 523.3% above this benchmark. Historically, Ferrari NV's own ROE % has ranged from 37.22 to 265.95 over the past decade. While the company's 10-year median is 45.22 vs. the industry median of 6.62, Ferrari NV has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Vehicles & Parts company?
The median ROE % among Vehicles & Parts companies is 6.62, based on 1,308 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ferrari NV's current ROE % of 41.26% is 523.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Ferrari NV and its competitors. For the Vehicles & Parts industry, the median ROE % is 6.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ferrari NV's current ROE % is 41.26%, which is near median its own 10-year median of 45.22. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ferrari NV stock overvalued right now?
Based on GuruFocus' analysis, Ferrari NV (RACE) is currently considered Modestly Undervalued. The stock's GF Value™ is $493.30, compared to a current price of $348.75 — trading 29.3% below its estimated fair value. The current ROE % is 41.26%, which is near median its 10-year median of 45.22 and 523.3% above the Vehicles & Parts industry median of 6.62. Ferrari NV's overall GF Score™ is 94/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Ferrari NV (RACE), the current ROE % is 41.26% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ferrari NV (RACE) Overvalued in 2026?
Based on GuruFocus' analysis, Ferrari NV stock appears to be undervalued.
The current stock price of $348.75 is trading 29.3% below its estimated GF Value™ of $493.30.
GuruFocus considers Ferrari NV to be Modestly Undervalued.
Key valuation signals for RACE:
ROE %: 41.26% (near median its 10-year median of 45.22)
GF Value™: $493.30 vs. price of $348.75 (29.3% below fair value)
Industry Position: 523.3% above the Vehicles & Parts median (#30 of 1308)
No single metric tells the full story. See the RACE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ferrari designs, engineers, and manufactures some of the world's most expensive luxury cars. With supply carefully controlled to be below demand and a brand steeped in decades of motor racing history, a Ferrari is viewed as a status symbol. In 2025, the company sold 13,640 vehicles at an average price over EUR 520,000 with more than 80% of its vehicles being sold to existing Ferrari clients. Eighty-four percent of revenue is generated from the sale of cars and spare parts and 10% from sponsorship, commercial, and brand activities including racing and lifestyle activities. In 2025, the Europe, Middle East, and Africa region accounted for 49% of revenue, the Americas was 32%, mainland China, Hong Kong, and Taiwan was 7%, and the rest of Asia was 12%.
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