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Rolls-Royce HoldingsRYCEF +1.03%70 EV-to-OCF is 24.94 as of Jul. 24, 2026, which is 135% above its 10-year median of 10.61. GuruFocus rates RYCEF with a GF Score™ of 70/100 and a GF Value™ of $8.27 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 359 Aerospace & Defense companies, Rolls-Royce Holdings ranks worse than 66.85% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Rolls-Royce Holdings's Enterprise Value is $153,350 Mil.
Rolls-Royce Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was $6,148 Mil. Therefore, Rolls-Royce Holdings's EV-to-OCF for today is 24.94.
The historical rank and industry rank for Rolls-Royce Holdings's EV-to-OCF or its related term are showing as below:
RYCEF'
s EV-to-OCF Range Over the Past 10 Years
Min: -61.27 Med: 10.61 Max: 27.45
Current: 24.94
During the past 13 years, the highest EV-to-OCF of Rolls-Royce Holdings was 27.45. The lowest was -61.27. And the median was 10.61.
RYCEF's EV-to-OCF is ranked worse than 66.85% of 359
companies
in the Aerospace & Defense industry
Industry Median: 13.75
vs RYCEF: 24.94
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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.
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 $18.362.
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 Dec. 2025 was $0.935.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Rolls-Royce Holdings EV-to-OCF Related Terms
Rolls-Royce Holdings EV-to-OCF Historical Data
* Premium members only.
The historical data trend for Rolls-Royce Holdings's EV-to-OCF 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 EV-to-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's EV-to-OCF falls into.
Rolls-Royce Holdings's current Enterprise Value is $153,350 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Rolls-Royce Holdings's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2025 was $6,148 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 (RYCEF) has a EV-to-OCF of 24.94 as of Jul. 24, 2026. This is 135% above median its historical median of 10.61. According to the industry distribution chart, Rolls-Royce Holdings ranks #240 out of 359 companies in the Aerospace & Defense industry, placing it in the top 66.9%.
Is Rolls-Royce Holdings' EV-to-OCF too high?
Rolls-Royce Holdings' current EV-to-OCF of 24.94 is 135% above median its 10-year median of 10.61. The Aerospace & Defense industry median EV-to-OCF is 13.75. Rolls-Royce Holdings' value of 24.94 is 81.4% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #240 out of 359 companies in the Aerospace & Defense industry, which is below the industry midpoint. 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' EV-to-OCF compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #240 out of 359 companies for EV-to-OCF. This places Rolls-Royce Holdings in the lower half of its industry. The industry median EV-to-OCF is 13.75. Rolls-Royce Holdings' value of 24.94 is 81.4% above this benchmark. While the company's 10-year median is 10.61 vs. the industry median of 13.75, 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-OCF for an Aerospace & Defense company?
The median EV-to-OCF among Aerospace & Defense companies is 13.75, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current EV-to-OCF of 24.94 is 81.4% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Aerospace & Defense industry, the median EV-to-OCF is 13.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current EV-to-OCF is 24.94, which is 135% above median its own 10-year median of 10.61. 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 (RYCEF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.27, compared to a current price of $18.36 — trading 122% above its estimated fair value. The current EV-to-OCF is 24.94, which is 135% above median its 10-year median of 10.61 and 81.4% above the Aerospace & Defense industry median of 13.75. 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 EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEF), the current EV-to-OCF is 24.94 as of Jul. 24, 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 (RYCEF) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of $18.36 is trading 122% above its estimated GF Value™ of $8.27.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEF:
EV-to-OCF: 24.94 (135% above median its 10-year median of 10.61)
GF Value™: $8.27 vs. price of $18.36 (122% above fair value)
Industry Position: 81.4% above the Aerospace & Defense median (#240 of 359)
No single metric tells the full story. See the RYCEF 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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