Rolls-Royce Holdings plc

OTCPK:RYCE.F Stock Report

Market Cap: US$61.6b

Rolls-Royce Holdings Valuation

Is RYCE.F undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RYCE.F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RYCE.F ($7.19) is trading below our estimate of fair value ($13.28)

Significantly Below Fair Value: RYCE.F is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RYCE.F?

Key metric: As RYCE.F is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RYCE.F. This is calculated by dividing RYCE.F's market cap by their current earnings.
What is RYCE.F's PE Ratio?
PE Ratio21.3x
EarningsUK£2.33b
Market CapUK£49.73b

Price to Earnings Ratio vs Peers

How does RYCE.F's PE Ratio compare to its peers?

The above table shows the PE ratio for RYCE.F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average34.5x
TDG TransDigm Group
47.6x17.6%US$71.3b
HWM Howmet Aerospace
41.9x16.1%US$44.4b
NOC Northrop Grumman
28.7x12.0%US$68.4b
GD General Dynamics
19.7x8.9%US$72.3b
RYCE.F Rolls-Royce Holdings
21.3x-0.9%US$49.7b

Price-To-Earnings vs Peers: RYCE.F is good value based on its Price-To-Earnings Ratio (21.3x) compared to the peer average (34.5x).

Price to Earnings Ratio vs Industry

How does RYCE.F's PE Ratio compare vs other companies in the US Aerospace & Defense Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
CVU CPI Aerostructures
3.3xn/aUS$52.65m
ETCC Environmental Tectonics
4.8xn/aUS$30.53m
AWIN AERWINS Technologies
0.0001xn/aUS$277.00
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
RYCE.F 21.3xIndustry Avg. 33.0xNo. of Companies7PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RYCE.F is good value based on its Price-To-Earnings Ratio (21.3x) compared to the US Aerospace & Defense industry average (33.1x).

Price to Earnings Ratio vs Fair Ratio

What is RYCE.F's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RYCE.F PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.3x
Fair PE Ratio22.4x

Price-To-Earnings vs Fair Ratio: RYCE.F is good value based on its Price-To-Earnings Ratio (21.3x) compared to the estimated Fair Price-To-Earnings Ratio (22.4x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RYCE.F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$7.19
US$7.11
-1.2%
23.5%US$10.52US$2.97n/a18
Dec ’25US$7.10
US$7.20
+1.4%
24.1%US$10.83US$3.06n/a17
Nov ’25US$7.13
US$6.94
-2.5%
20.4%US$8.62US$3.11n/a17
Oct ’25US$7.03
US$7.02
-0.1%
20.5%US$8.86US$3.15n/a17
Sep ’25US$6.56
US$7.03
+7.2%
20.5%US$8.86US$3.15n/a17
Aug ’25US$6.07
US$6.22
+2.5%
19.5%US$7.75US$3.10n/a17
Jul ’25US$5.71
US$6.02
+5.6%
19.7%US$7.59US$3.03n/a17
Jun ’25US$5.80
US$5.72
-1.4%
18.4%US$7.66US$3.06n/a17
May ’25US$5.08
US$5.49
+8.0%
17.0%US$6.80US$2.97n/a17
Apr ’25US$5.41
US$5.55
+2.7%
16.6%US$6.94US$3.03n/a17
Mar ’25US$4.74
US$5.11
+7.7%
14.6%US$6.58US$3.04n/a18
Feb ’25US$3.79
US$4.50
+18.6%
14.8%US$5.48US$3.05n/a18
Jan ’25US$3.81
US$4.06
+6.5%
26.9%US$5.48US$1.27US$7.0518
Dec ’24US$3.53
US$3.60
+2.1%
24.4%US$5.08US$1.27US$7.1017
Nov ’24US$2.72
US$2.83
+4.1%
23.6%US$4.25US$1.22US$7.1317
Oct ’24US$2.67
US$2.85
+6.8%
23.5%US$4.32US$1.23US$7.0317
Sep ’24US$2.75
US$2.89
+4.9%
23.8%US$4.41US$1.26US$6.5617
Aug ’24US$2.38
US$2.27
-4.5%
27.4%US$3.32US$1.15US$6.0717
Jul ’24US$1.92
US$1.95
+1.7%
28.4%US$3.22US$1.13US$5.7118
Jun ’24US$1.83
US$1.92
+5.0%
30.4%US$3.17US$1.12US$5.8016
May ’24US$1.88
US$1.88
-0.2%
30.3%US$3.17US$1.12US$5.0815
Apr ’24US$1.85
US$1.81
-2.2%
32.8%US$3.15US$0.93US$5.4116
Mar ’24US$1.78
US$1.49
-15.9%
24.6%US$2.10US$0.90US$4.7416
Feb ’24US$1.32
US$1.28
-3.2%
23.1%US$1.81US$0.65US$3.7915
Jan ’24US$1.11
US$1.17
+5.6%
18.2%US$1.80US$0.86US$3.8115

Analyst Forecast: Target price is lower than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2025/01/02 08:28
End of Day Share Price 2025/01/02 00:00
Earnings2024/06/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Rolls-Royce Holdings plc is covered by 50 analysts. 15 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Thomas PicheritAlphaValue
Graham WebsterArden Partners Plc.
Milene KernerBarclays