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Rolls-Royce HoldingsCHIX:RRL +5.17%71 EV-to-EBITDA is 22.10 as of Jul. 31, 2026, which is 249% above its 10-year median of 6.33. GuruFocus rates CHIX:RRL with a GF Score™ of 71/100 and a GF Value™ of £7.62 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 265 Aerospace & Defense companies, Rolls-Royce Holdings ranks worse than 51.32% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Rolls-Royce Holdings's enterprise value is £118,744 Mil.
Rolls-Royce Holdings's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was £5,374 Mil. Therefore, Rolls-Royce Holdings's EV-to-EBITDA for today is 22.10.
The historical rank and industry rank for Rolls-Royce Holdings's EV-to-EBITDA or its related term are showing as below:
CHIX:RRl'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -139.33 Med: 6.33 Max: 28.59
Current: 22.1
During the past 13 years, the highest EV-to-EBITDA of Rolls-Royce Holdings was 28.59. The lowest was -139.33. And the median was 6.33.
CHIX:RRl's EV-to-EBITDA is ranked worse than 51.32% of 265
companies
in the Aerospace & Defense industry
Industry Median: 21.31
vs CHIX:RRl: 22.10
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Rolls-Royce Holdings's PE Ratio (TTM) for today is calculated as:
Rolls-Royce Holdings's share price for today is £14.587.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Rolls-Royce Holdings's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 was £0.363.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
The historical data trend for Rolls-Royce Holdings's EV-to-EBITDA 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.
CHIX:RRL vs SPCX, GE, RTX: EV-to-EBITDA Comparison
For the Aerospace & Defense subindustry, Rolls-Royce Holdings's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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 EV-to-EBITDA vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's EV-to-EBITDA falls into.
Rolls-Royce Holdings's current Enterprise Value is £118,744 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Rolls-Royce Holdings's EBITDA for the trailing twelve months (TTM) ended in Jun. 2026 was £5,374 Mil.
* 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 (CHIX:RRL) has a EV-to-EBITDA of 22.10 as of Jul. 31, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Rolls-Royce Holdings. This is 249% above median its historical median of 6.33. According to the industry distribution chart, Rolls-Royce Holdings ranks #136 out of 265 companies in the Aerospace & Defense industry, placing it in the top 51.3%.
Is Rolls-Royce Holdings' EV-to-EBITDA too high?
Rolls-Royce Holdings' current EV-to-EBITDA of 22.10 is 249% above median its 10-year median of 6.33. The Aerospace & Defense industry median EV-to-EBITDA is 21.31. Rolls-Royce Holdings' value of 22.10 is 3.7% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #136 out of 265 companies in the Aerospace & Defense industry, which is below the industry midpoint. Overall, Rolls-Royce Holdings has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' EV-to-EBITDA compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #136 out of 265 companies for EV-to-EBITDA. This places Rolls-Royce Holdings in the lower half of its industry. The industry median EV-to-EBITDA is 21.31. Rolls-Royce Holdings' value of 22.10 is 3.7% above this benchmark. While the company's 10-year median is 6.33 vs. the industry median of 21.31, 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 EV-to-EBITDA for an Aerospace & Defense company?
The median EV-to-EBITDA among Aerospace & Defense companies is 21.31, based on 265 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current EV-to-EBITDA of 22.10 is 3.7% 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 EV-to-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Rolls-Royce Holdings. For the Aerospace & Defense industry, the median EV-to-EBITDA is 21.31 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current EV-to-EBITDA is 22.10, which is 249% above median its own 10-year median of 6.33. 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 (CHIX:RRL) is currently considered Significantly Overvalued. The stock's GF Value™ is £7.62, compared to a current price of £14.59 — trading 91.4% above its estimated fair value. The current EV-to-EBITDA is 22.10, which is 249% above median its 10-year median of 6.33 and 3.7% above the Aerospace & Defense industry median of 21.31. Rolls-Royce Holdings' overall GF Score™ is 71/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Rolls-Royce Holdings (CHIX:RRL), the current EV-to-EBITDA is 22.10 as of Jul. 31, 2026. 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 (CHIX:RRL) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of £14.59 is trading 91.4% above its estimated GF Value™ of £7.62.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for CHIX:RRL:
EV-to-EBITDA: 22.10 (249% above median its 10-year median of 6.33)
GF Value™: £7.62 vs. price of £14.59 (91.4% above fair value)
Industry Position: 3.7% above the Aerospace & Defense median (#136 of 265)
No single metric tells the full story. See the CHIX:RRL 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.
71GF Score
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