Rolls-Royce HoldingsRYCEY +0.38%70 EBITDA Margin % is 22.96% as of Dec. 2025, which is 273% above its 10-year median of 6.16. GuruFocus rates RYCEY with a GF Score™ of 70/100 and a GF Value™ of $8.42 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 347 Aerospace & Defense companies, Rolls-Royce Holdings ranks better than 93.66% on this metric.
EBITDA Margin % is the ratio of EBITDA divided by net sales or Revenue. It is an performance metric measuring company's operating profitability. EBITDA Margin takes depreciation and amortization, interest expense and tax into account, which makes it easy to compare the relative profitability of companies of different sizes in the same industry.
Rolls-Royce Holdings EBITDA Margin % Related Terms
Rolls-Royce Holdings EBITDA Margin % Historical Data
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The historical data trend for Rolls-Royce Holdings's EBITDA Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Aerospace & Defense subindustry, Rolls-Royce Holdings's EBITDA Margin %, along with its competitors' market caps and EBITDA Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Rolls-Royce Holdings EBITDA Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's EBITDA Margin % distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's EBITDA Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Rolls-Royce Holdings (RYCEY) has a EBITDA Margin % of 22.96% as of Dec. 2025. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Rolls-Royce Holdings and its competitors. This is 273% above median its historical median of 6.16. According to the industry distribution chart, Rolls-Royce Holdings ranks #22 out of 347 companies in the Aerospace & Defense industry, placing it in the top 6.3%.
Is Rolls-Royce Holdings' EBITDA Margin % too high?
Rolls-Royce Holdings' current EBITDA Margin % of 22.96% is 273% above median its 10-year median of 6.16. The Aerospace & Defense industry median EBITDA Margin % is 11.96. Rolls-Royce Holdings' value of 22.96% is 92% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #22 out of 347 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, Rolls-Royce Holdings has a GF Score™ of 70/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' EBITDA Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #22 out of 347 companies for EBITDA Margin %. This places Rolls-Royce Holdings in the top 6% of its industry — outperforming the majority of peers. The industry median EBITDA Margin % is 11.96. Rolls-Royce Holdings' value of 22.96% is 92% above this benchmark. While the company's 10-year median is 6.16 vs. the industry median of 11.96, Rolls-Royce Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBITDA Margin % for an Aerospace & Defense company?
The median EBITDA Margin % among Aerospace & Defense companies is 11.96, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a EBITDA Margin % significantly above this median, while those in the bottom quartile fall well below. However, EBITDA Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current EBITDA Margin % of 22.96% is 92% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBITDA Margin % mean?
A high EBITDA Margin % can signal that a stock is expensive relative to its fundamentals. EBITDA Margin is the ratio of EBITDA divided by net sales or Revenue, usually presented in percent. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median EBITDA Margin % is 11.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current EBITDA Margin % is 22.96%, which is 273% above median its own 10-year median of 6.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rolls-Royce Holdings stock overvalued right now?
Based on GuruFocus' analysis, Rolls-Royce Holdings (RYCEY) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.42, compared to a current price of $18.60 — trading 120.9% above its estimated fair value. The current EBITDA Margin % is 22.96%, which is 273% above median its 10-year median of 6.16 and 92% above the Aerospace & Defense industry median of 11.96. Rolls-Royce Holdings' overall GF Score™ is 70/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBITDA Margin % calculated?
EBITDA Margin % is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEY), the current EBITDA Margin % is 22.96% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Rolls-Royce Holdings (RYCEY) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of $18.60 is trading 120.9% above its estimated GF Value™ of $8.42.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEY:
EBITDA Margin %: 22.96% (273% above median its 10-year median of 6.16)
GF Value™: $8.42 vs. price of $18.60 (120.9% above fair value)
Industry Position: 92% above the Aerospace & Defense median (#22 of 347)
No single metric tells the full story. See the RYCEY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Rolls-Royce operates three core business segments: civil aerospace, power systems, and defense. The civil aerospace segment builds engines powering wide-body aircraft, regional and business jets, and offers aftermarket services. Twenty years ago, the firm pioneered full-service flight hour contracts with the TotalCare package. Power systems provides power solutions to multiple end markets (defense, agriculture, marine, and power generation) while the defense business provides military, ground vehicle and naval propulsion solutions.
70GF Score
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