CYD vs. RACE: Which Stock Is the Better Value Option?

Core Viewpoint - The analysis compares China Yuchai (CYD) and Ferrari (RACE) to determine which stock represents a better undervalued investment opportunity for investors in the Automotive - Original Equipment sector [1]. Valuation Metrics - CYD has a forward P/E ratio of 17.66, significantly lower than RACE's forward P/E of 35.56, indicating that CYD may be undervalued relative to RACE [5]. - The PEG ratio for CYD is 0.31, while RACE has a PEG ratio of 3.96, suggesting that CYD's expected earnings growth is more favorable compared to its price [5]. - CYD's P/B ratio stands at 1.15, compared to RACE's P/B of 21.46, further supporting the notion that CYD is undervalued [6]. Earnings Outlook - CYD is currently exhibiting an improving earnings outlook, which enhances its attractiveness in the Zacks Rank model, where it holds a 1 (Strong Buy) rating, in contrast to RACE's 3 (Hold) rating [3][7].