Rolls-Royce Holdings (OTCPK:RYCEF) Forward PE Ratio Explanation
The Forward PE Ratio of a company is often used to compare current earnings to estimated future earnings, as well as gaining a clearer picture of what earnings will look like without charges and other accounting adjustments. If earnings are expected to grow in the future, the Forward PE Ratio will be lower than the current PE Ratio. This measure is also used to compare one company to another with a forward-looking focus.
Trailing PE Ratio relies on what is already done. It uses the current share price and divides by the total EPS (Basic) over the past 12 months. PE Ratio can be affected by Non Operating Income such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio .
Rolls-Royce Holdings Forward PE Ratio Related Terms
Rolls-Royce Holdings Forward PE Ratio Historical Data
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The historical data trend for Rolls-Royce Holdings's Forward PE Ratio 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.
Rolls-Royce Holdings Forward PE Ratio Chart
Rolls-Royce Holdings Annual Data
Trend
2015-12
2016-12
2017-12
2018-12
2019-12
2021-12
2022-12
2023-12
2024-12
2025-12
Forward PE Ratio
22.08
21.98
36.90
27.10
21.01
26.74
22.88
27.17
28.40
35.94
Rolls-Royce Holdings Semi-Annual Data
2015-12
2016-06
2016-12
2017-06
2017-12
2018-06
2018-12
2019-06
2019-12
2020-06
2021-12
2022-06
2022-12
2023-06
2023-12
2024-06
2024-12
2025-06
2025-12
Forward PE Ratio
22.08
25.06
21.98
27.93
36.90
64.10
27.10
31.95
21.01
212.77
26.74
74.07
22.88
29.59
27.17
5,000.00
28.40
38.87
35.94
RYCEF vs SPCX, GE, RTX: Forward PE Ratio Comparison
For the Aerospace & Defense subindustry, Rolls-Royce Holdings's Forward PE Ratio, along with its competitors' market caps and Forward PE Ratio 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 Forward PE Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Forward PE Ratio distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's Forward PE Ratio falls into.
It's a measure of the price-to-earnings ratio (PE Ratio) using forecasted earnings for the calculation. While the earnings used are just an estimate and are not as reliable as current earnings data, there is still benefit in estimated P/E analysis. The forecasted earnings used in the formula can either be for the next 12 months or for the next full-year fiscal period.
Rolls-Royce Holdings (RYCEF) has a Forward PE Ratio of 39.99 as of Jul. 06, 2026. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Rolls-Royce Holdings and its competitors. According to the industry distribution chart, Rolls-Royce Holdings ranks #131 out of 204 companies in the Aerospace & Defense industry, placing it in the top 64.2%.
Is Rolls-Royce Holdings' Forward PE Ratio too high?
Rolls-Royce Holdings' current Forward PE Ratio is 39.99. The Aerospace & Defense industry median Forward PE Ratio is 29.99. Rolls-Royce Holdings' value of 39.99 is 33.3% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #131 out of 204 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' Forward PE Ratio compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #131 out of 204 companies for Forward PE Ratio. This places Rolls-Royce Holdings in the lower half of its industry. The industry median Forward PE Ratio is 29.99. Rolls-Royce Holdings' value of 39.99 is 33.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Forward PE Ratio for an Aerospace & Defense company?
The median Forward PE Ratio among Aerospace & Defense companies is 29.99, based on 204 companies in the industry. Companies in the top quartile (top 25%) have a Forward PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Forward PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current Forward PE Ratio of 39.99 is 33.3% 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 Forward PE Ratio mean?
A high Forward PE Ratio can signal that a stock is expensive relative to its fundamentals. Forward P/E ratio is the share price dividend by the expected per-share earnings in the next 12 months. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median Forward PE Ratio is 29.99 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current Forward PE Ratio is 39.99. 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 $19.68 — trading 137.9% above its estimated fair value. The current Forward PE Ratio is 39.99 and 33.3% above the Aerospace & Defense industry median of 29.99. 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 Forward PE Ratio calculated?
Forward PE Ratio is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEF), the current Forward PE Ratio is 39.99 as of Jul. 06, 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 $19.68 is trading 137.9% above its estimated GF Value™ of $8.27.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEF:
Forward PE Ratio: 39.99
GF Value™: $8.27 vs. price of $19.68 (137.9% above fair value)
Industry Position: 33.3% above the Aerospace & Defense median (#131 of 204)
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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Forward PE Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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