Rolls-Royce Holdings plc

OTCPK:RYCE.F Stock Report

Market Cap: US$57.8b

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 ($6.79) is trading below our estimate of fair value ($13.61)

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 Ratio19.8x
EarningsUK£2.33b
Market CapUK£46.11b

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 Average73.7x
TDG TransDigm Group
47.9x17.3%US$70.9b
HWM Howmet Aerospace
44.8x15.6%US$48.1b
AXON Axon Enterprise
163.3x17.7%US$48.6b
LHX L3Harris Technologies
39x20.7%US$47.1b
RYCE.F Rolls-Royce Holdings
19.8x-0.09%US$46.1b

Price-To-Earnings vs Peers: RYCE.F is good value based on its Price-To-Earnings Ratio (19.8x) compared to the peer average (73.7x).

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
2.8xn/aUS$48.62m
ETCC Environmental Tectonics
4.9xn/aUS$31.14m
AWIN AERWINS Technologies
0.002xn/aUS$6.93k
GIGA.Q Gresham Worldwide
n/an/aUS$7.00
No more companies available in this PE range
RYCE.F 19.8xIndustry Avg. 35.1xNo. of Companies6PE020406080100+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RYCE.F is good value based on its Price-To-Earnings Ratio (19.8x) compared to the US Aerospace & Defense industry average (35.1x).

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 Ratio19.8x
Fair PE Ratio22.7x

Price-To-Earnings vs Fair Ratio: RYCE.F is good value based on its Price-To-Earnings Ratio (19.8x) compared to the estimated Fair Price-To-Earnings Ratio (22.7x).

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$6.79
US$6.89
+1.6%
21.5%US$8.84US$3.03n/a17
Nov ’25US$7.13
US$6.94
-2.5%
20.4%US$8.62US$3.11n/a17
Oct ’25US$7.03
US$7.03
+0.005%
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$1.27n/a18
Dec ’24US$3.53
US$3.60
+2.1%
24.4%US$5.08US$1.27n/a17
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
Dec ’23US$1.06
US$1.14
+7.4%
19.5%US$1.77US$0.72US$3.5315
Nov ’23US$0.95
US$1.05
+10.5%
20.5%US$1.67US$0.68US$2.7214

Analyst Forecast: Target price is less than 20% higher than the current share price.

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