Rolls-Royce Holdings (RRU) fair value: what the stock is really worth
As of Oct 2, 2026: fair value of Rolls-Royce Holdings €11.13, price €17.38, upside -36.0%, quality 74 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
- Fair value above price? No
- Good quality? Yes
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Rolls-Royce Holdings
RRU · XETRAStretched ValuationStrong overvaluation with only moderate quality.
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Price vs Fair Value
White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 28, 2026.
How to read this chart
60‑month range €0.7376 – €18.37 · fair‑value band €7.34 – €14.30 · the €17.38 price screens above the €11.13 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 28, 2026.
Company profile
Rolls-Royce Holdings plc designs and manages mission-critical power systems in the United Kingdom and internationally. The company operates through three segments: Civil Aerospace, Defence, and Power Systems.
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Rolls-Royce Holdings plc designs and manages mission-critical power systems in the United Kingdom and internationally. The company operates through three segments: Civil Aerospace, Defence, and Power Systems. The Civil Aerospace segment develops, manufactures, markets, and sells aero engines for large commercial aircraft, regional jet, and business aviation markets, as well as provides aftermarket services. The Defence segment is involved in the development, manufacture, marketing, and sale of military aero engines, naval engines, and submarine nuclear power plants, as well as offers aftermarket services. The Power Systems segment engages in the development, manufacture, marketing, and sale of integrated solutions for onsite power and propulsion under the mtu brand name. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom.
Stock analysis
Rolls-Royce Holdings (RRU) currently trades at €17.38, while our model-based Fair Value estimate is €11.13, 36.0% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of €15.59 per share, and 3 of the 26 models we run sit above the €17.38 price.
Bear case: the Economic Profit group reads lowest at €1.56, and 23 of the 26 models stay below the price. Evidence for this calculation is high.
Scenario range: €7.34 (bear) to €14.30 (bull), the price of €17.38 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 74/100 (solid quality), in the Industrials sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Rolls-Royce Holdings reported revenue of £21.2B in FY2025 versus £11.2B in FY2021, a compound +17.3%/yr. Reported net income was £5.8B in FY2025, compounding +164.2%/yr from FY2021. FY2021 was a trough year, so the rate overstates the trend.
Key figures
Market cap €147B · P/E ratio 21.7 · P/S ratio 5.98 · EPS (TTM) €0.8000 · Dividend yield 0.5% · Net margin 27.5% · Return on equity 62.4% · Return on assets (EBIT) 6.5%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 49 out of 100 (low confidence).
What moves the price
The share trades about 5% below its 52-week high and 49% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at −24% fair-value upside, at −36%, RRU screens richer than that median.
Fair Value models
All 26 models by family
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Set up alert →Quality Score breakdown
Of which business quality 70 · Market factors (momentum, volatility) 60
Revenue & earnings trend
Growth Forecast
RRU screens overvalued: fair value 36% below the price. Compare with General Electric Company →
Compare Rolls-Royce Holdings with another stock
Price, fair value, quality and upside side by side.
Context: sector, industry, market
- P/E, EV/EBITDA and margins by industry (reference tables)
- Undervalued stocks: German Stocks
- Valuation of the Germany market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value |
|---|---|---|---|
| General Electric Company GE | $312.29 | $92.61 | −70% |
| RTX Corporation RTX | $185.01 | $88.30 | −52% |
| Airbus SE AIR | €185.60 | €112.14 | −40% |
| Lockheed Martin Corporation LMT | $509.25 | $439.62 | −14% |
| Howmet Aerospace Inc HWM | $230.94 | $52.67 | −77% |
| General Dynamics Corporation GD | $334.16 | $274.19 | −18% |
| Northrop Grumman Corporation NOC | $504.61 | $382.98 | −24% |
| TransDigm Group TDG | $1,116 | $1,228 | +10% |
| Thales S.A HO | €222.70 | €170.99 | −23% |
| Rheinmetall AG RHM | €956.90 | €313.19 | −67% |
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Key figures of Rolls-Royce Holdings
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