RACE

Ferrari N.V. announced the purchase of 43,000 common shares between October 5-9, 2026, as part of its €250 million third tranche share buyback program. The company invested €114.8 million at an average price of €344.08 per share on Euronext Milan. Since January 2026, Ferrari has purchased 2,032,307 shares for a total consideration of €627.7 million under its multi-year €3.5 billion buyback initiative expected to conclude by 2030.

A comparison of two automotive original equipment manufacturers shows Magna (MGA) is the superior value investment compared to Ferrari (RACE). Magna has a stronger Zacks Rank of #2 (Buy) versus Ferrari's #3 (Hold), along with significantly more attractive valuation metrics including a forward P/E of 9.15 versus 35.80, a PEG ratio of 0.69 versus 3.44, and a Value grade of A versus D.

Ferrari shares purchased at their March 2026 low of $314.63 have gained 26.5% to reach approximately $1,265 by late September. The stock currently trades at $402.05, down 23% from its peak, with a P/E ratio of 37. The article highlights how market volatility can create buying opportunities for long-term investors in quality companies.

The article argues that Ferrari is a superior long-term investment compared to Ford over the next decade. While Ford's stock gained 84% total return over 10 years, Ferrari's surged 742%. The author attributes this to Ferrari's strong economic moat, pricing power, brand prestige, and superior earnings growth (377% net income increase vs. Ford's 33% decline), making it harder to replicate Ferrari's business model than Ford's.

The global motorsports market is projected to grow from USD 11.45 billion in 2026 to USD 16.17 billion by 2031, expanding at a 7.15% CAGR. Growth is driven by increased sponsorship demand, digital media distribution, premium hospitality experiences, and electrification initiatives. Europe leads with 36.47% market share, while Formula 1 and MotoGP remain key revenue drivers.