Rolls-Royce HoldingsRYCEF -0.90%71 EV-to-FCF is 30.90 as of Jun. 24, 2026, which is 33% above its 10-year median of 23.19. GuruFocus rates RYCEF with a GF Score™ of 71/100 and a GF Value™ of $8.27 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 180 Aerospace & Defense companies, Rolls-Royce Holdings ranks better than 55.56% on this metric.
EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Rolls-Royce Holdings's Enterprise Value is $149,002 Mil.
Rolls-Royce Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was $4,822 Mil. Therefore, Rolls-Royce Holdings's EV-to-FCF for today is 30.90.
The historical rank and industry rank for Rolls-Royce Holdings's EV-to-FCF or its related term are showing as below:
RYCEF'
s EV-to-FCF Range Over the Past 10 Years
Min: -19.4 Med: 23.19 Max: 152.8
Current: 30.9
During the past 13 years, the highest EV-to-FCF of Rolls-Royce Holdings was 152.80. The lowest was -19.40. And the median was 23.19.
RYCEF's EV-to-FCF is ranked better than 55.56% of 180
companies
in the Aerospace & Defense industry
Industry Median: 34.655
vs RYCEF: 30.90
EV-to-FCF 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-FCF 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 $18.00.
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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF ratio, combined with a strong balance sheet are generally considered as undervalued.
Rolls-Royce Holdings EV-to-FCF Related Terms
Rolls-Royce Holdings EV-to-FCF Historical Data
* Premium members only.
The historical data trend for Rolls-Royce Holdings's EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's EV-to-FCF falls into.
Rolls-Royce Holdings's current Enterprise Value is $149,002 Mil.
For company reported semi-annually, GuruFocus uses latest annual data as the TTM data. Rolls-Royce Holdings's Free Cash Flow for the trailing twelve months (TTM) ended in Dec. 2025 was $4,822 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-FCF of 30.90 as of Jun. 24, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Rolls-Royce Holdings and its competitors. This is 33% above median its historical median of 23.19. According to the industry distribution chart, Rolls-Royce Holdings ranks #80 out of 180 companies in the Aerospace & Defense industry, placing it in the top 44.4%.
Is Rolls-Royce Holdings' EV-to-FCF too high?
Rolls-Royce Holdings' current EV-to-FCF of 30.90 is 33% above median its 10-year median of 23.19. The Aerospace & Defense industry median EV-to-FCF is 34.66. Rolls-Royce Holdings' value of 30.90 is 10.8% below this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #80 out of 180 companies in the Aerospace & Defense industry, which is above 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-FCF compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #80 out of 180 companies for EV-to-FCF. This puts Rolls-Royce Holdings in the upper half of its industry. The industry median EV-to-FCF is 34.66. Rolls-Royce Holdings' value of 30.90 is 10.8% below this benchmark. While the company's 10-year median is 23.19 vs. the industry median of 34.66, Rolls-Royce Holdings has consistently been below 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-FCF for an Aerospace & Defense company?
The median EV-to-FCF among Aerospace & Defense companies is 34.66, based on 180 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current EV-to-FCF of 30.90 is 10.8% below 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-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median EV-to-FCF is 34.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current EV-to-FCF is 30.90, which is 33% above median its own 10-year median of 23.19. 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 $18.00 — trading 117.7% above its estimated fair value. The current EV-to-FCF is 30.90, which is 33% above median its 10-year median of 23.19 and 10.8% below the Aerospace & Defense industry median of 34.66. 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEF), the current EV-to-FCF is 30.90 as of Jun. 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 $18.00 is trading 117.7% above its estimated GF Value™ of $8.27.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEF:
EV-to-FCF: 30.90 (33% above median its 10-year median of 23.19)
GF Value™: $8.27 vs. price of $18.00 (117.7% above fair value)
Industry Position: 10.8% below the Aerospace & Defense median (#80 of 180)
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.
71GF Score
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