Rolls-Royce HoldingsRYCEY +0.65%70 FCF Yield % is 3.12 as of Jun. 24, 2026, which is 3% below its 10-year median of 3.23. 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 356 Aerospace & Defense companies, Rolls-Royce Holdings ranks better than 77.25% on this metric.
FCF Yield % is calculated as Free Cash Flow divided by Market Capitalization. It is a financial solvency ratio that compares the free cash flow a company is expected to earn against its market value.
Similar to Earnings Yield %, FCF Yield % is financial solvency ratio. A lower ratio suggests a less attractive investment, indicating that investors might not receive substantial returns in proportion to their investment. Conversely, a high free cash flow yield signals that a company generates sufficient cash to comfortably meet its debts, obligations, and dividend payments, making it a promising investment choice.
Rolls-Royce Holdings FCF Yield % Related Terms
Rolls-Royce Holdings FCF Yield % Historical Data
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The historical data trend for Rolls-Royce Holdings's FCF Yield % 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 FCF Yield %, along with its competitors' market caps and FCF Yield % 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 FCF Yield % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's FCF Yield % distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's FCF Yield % 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 FCF Yield % of 3.12 as of Jun. 24, 2026. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Rolls-Royce Holdings and its competitors. This is near median its historical median of 3.23. According to the industry distribution chart, Rolls-Royce Holdings ranks #81 out of 356 companies in the Aerospace & Defense industry, placing it in the top 22.8%.
Is Rolls-Royce Holdings' FCF Yield % too high?
Rolls-Royce Holdings' current FCF Yield % of 3.12 is near median its 10-year median of 3.23. Based on the distribution chart, Rolls-Royce Holdings ranks #81 out of 356 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' FCF Yield % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #81 out of 356 companies for FCF Yield %. This places Rolls-Royce Holdings in the top 23% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Yield % for an Aerospace & Defense company?
A good FCF Yield % depends on the Aerospace & Defense industry context. However, FCF Yield % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Yield % mean?
A high FCF Yield % can signal that a stock is expensive relative to its fundamentals. FCF Yield is calculated as Free Cash Flow divided by Market Capitalization. View historical data on Rolls-Royce Holdings and its competitors. Rolls-Royce Holdings's current FCF Yield % is 3.12, which is near median its own 10-year median of 3.23. 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 $18.65 — trading 121.5% above its estimated fair value. The current FCF Yield % is 3.12, which is near median its 10-year median of 3.23. 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 FCF Yield % calculated?
FCF Yield % is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEY), the current FCF Yield % is 3.12 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 (RYCEY) Overvalued in 2026?
Based on GuruFocus' analysis, Rolls-Royce Holdings stock appears to be overvalued.
The current stock price of $18.65 is trading 121.5% above its estimated GF Value™ of $8.42.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEY:
FCF Yield %: 3.12 (near median its 10-year median of 3.23)
GF Value™: $8.42 vs. price of $18.65 (121.5% above fair value)
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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