How Ferrari’s Completed €2 Billion Buyback At Ferrari (BIT:RACE) Has Changed Its Investment Story

In late 2025, Ferrari completed its multi-year share repurchase plan, buying back 6,015,933 shares, or 3.34% of its equity, for €2.00 billion, including 717,508 shares for €247.05 million between October 1 and December 30 before formally closing the program. This sizeable reduction in the share count marks a significant capital allocation decision that can influence per-share financial metrics and underline management’s confidence in the business. We’ll now examine how Ferrari’s completion of its €2.00 billion buyback program may reshape the company’s investment narrative and outlook. Uncover the next big thing with financially sound penny stocks that balance risk and reward.Ferrari Investment Narrative RecapTo own Ferrari, you need to believe in its ability to convert a tightly controlled, ultra-luxury brand into durable, high-margin cash flows while adapting to electrification and changing luxury tastes. The completion of the €2.00 billion buyback modestly tightens the share base but does not materially change near term catalysts, which still center on upcoming hybrid and electric launches, or the key risk of demand or pricing pressure if new models or regions underperform. The most directly connected recent announcement is Ferrari’s stepped up dividend policy, targeting a 40% payout of adjusted net profit and about €3.5 billion in distributions from 2027 to 2031. Taken together with the completed buyback, this shapes a more shareholder focused capital returns profile, which may support the investment case as investors weigh it against the execution risk around electrification, product cycles, and global luxury demand. Yet investors should also be aware that if new model launches fail to offset any softening demand or pricing power, then... Read the full narrative on Ferrari (it's free!)Ferrari's narrative projects €8.8 billion revenue and €2.1 billion earnings by 2028. This requires 8.1% yearly revenue growth and about a €0.5 billion earnings increase from €1.6 billion today.Uncover how Ferrari's forecasts yield a €404.24 fair value, a 26% upside to its current price.Exploring Other PerspectivesBIT:RACE 1-Year Stock Price Chart Fifteen fair value estimates from the Simply Wall St Community span roughly €93 to €480, showing how far apart individual views on Ferrari can sit. Against that backdrop, the company’s heavy focus on electrification and new model programs, alongside the completed €2.00 billion buyback, gives you several different angles on how future execution could influence both its earnings power and perceived quality.Explore 15 other fair value estimates on Ferrari - why the stock might be worth as much as 49% more than the current price!Build Your Own Ferrari NarrativeDisagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.A great starting point for your Ferrari research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.Our free Ferrari research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Ferrari's overall financial health at a glance.Ready For A Different Approach?Our daily scans reveal stocks with breakout potential. Don't miss this chance:Outshine the giants: these 28 early-stage AI stocks could fund your retirement.This technology could replace computers: discover 29 stocks that are working to make quantum computing a reality.These 16 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.