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Rolls-Royce HoldingsRYCEF -1.20%71 Intrinsic Value: Projected FCF is $1.49 as of Aug. 30, 2026. GuruFocus rates RYCEF with a GF Score™ of 71/100 and a GF Value™ of $10.25 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 197 Aerospace & Defense companies, Rolls-Royce Holdings ranks worse than 90.36% on this metric.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company. The details of how we calculate the intrinsic value of stocks are described in detail here.
The historical rank and industry rank for Rolls-Royce Holdings's Intrinsic Value: Projected FCF or its related term are showing as below:
RYCEF'
s Price-to-Projected-FCF Range Over the Past 10 Years
Min: 2.08 Med: 8.35 Max: 234.45
Current: 13.76
During the past 13 years, the highest Price-to-Intrinsic-Value-Projected-FCF of Rolls-Royce Holdings was 234.45. The lowest was 2.08. And the median was 8.35.
RYCEF's Price-to-Projected-FCF is ranked worse than 90.36% of 197
companies
in the Aerospace & Defense industry
Industry Median: 2.74
vs RYCEF: 13.76
The growth multiple is capped between 8.35 and 17.74.
Total Stockholders Equity weighting is more art than science and it should always be revisited in more detail when researching a company. Weightings from 0% to 100% to more than 100% are possible. 80% was chosen as a happy median after taking the above ideas into consideration.
Rolls-Royce Holdings's Price-to-Intrinsic-Value-Projected-FCF for today is calculated as
Price-to-Intrinsic-Value-Projected-FCF
=
Share Price
/
Intrinsic Value: Projected FCF
=
20.50
/
1.409838821385
=
14.54
* 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 Intrinsic Value: Projected FCF Related Terms
Rolls-Royce Holdings Intrinsic Value: Projected FCF Historical Data
* Premium members only.
The historical data trend for Rolls-Royce Holdings's Intrinsic Value: Projected 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.
RYCEF vs SPCX, GE, RTX: Intrinsic Value: Projected FCF Comparison
For the Aerospace & Defense subindustry, Rolls-Royce Holdings's Price-to-Projected-FCF, along with its competitors' market caps and Price-to-Projected-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 Price-to-Projected-FCF vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's Price-to-Projected-FCF distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's Price-to-Projected-FCF falls into.
Since the intrinsic value calculations based on Discounted Cash Flow Intrinsic Value: DCF (FCF Based), or Discounted Earnings Intrinsic Value: DCF (Earnings Based) cannot be applied to companies without consistent revenue and earnings, GuruFocus developed a valuation model based on normalized Free Cash Flow and Book Value of the company.
The details of how we calculate the intrinsic value of stocks are described in detail here.
This method smooths out the free cash flow over the past 6-7 years, multiplies the results by a growth multiple, and adds a portion of Total Stockholders Equity.
* 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.
What does a Intrinsic Value: Projected FCF of $1.49 mean?
Rolls-Royce Holdings (RYCEF) has a Intrinsic Value: Projected FCF of $1.49 as of Aug. 30, 2026. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Rolls-Royce Holdings and its competitors. According to the industry distribution chart, Rolls-Royce Holdings ranks #178 out of 197 companies in the Aerospace & Defense industry, placing it in the top 90.4%.
Is Rolls-Royce Holdings' Intrinsic Value: Projected FCF too high?
Rolls-Royce Holdings' current Intrinsic Value: Projected FCF is $1.49. The Aerospace & Defense industry median Intrinsic Value: Projected FCF is 2.74. Rolls-Royce Holdings' value of $1.49 is 45.6% below this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #178 out of 197 companies in the Aerospace & Defense industry, which is in the bottom quartile relative to peers. 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' Intrinsic Value: Projected FCF compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #178 out of 197 companies for Intrinsic Value: Projected FCF. This places Rolls-Royce Holdings in the lower half of its industry. The industry median Intrinsic Value: Projected FCF is 2.74. Rolls-Royce Holdings' value of $1.49 is 45.6% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Intrinsic Value: Projected FCF for an Aerospace & Defense company?
The median Intrinsic Value: Projected FCF among Aerospace & Defense companies is 2.74, based on 197 companies in the industry. Companies in the top quartile (top 25%) have a Intrinsic Value: Projected FCF significantly above this median, while those in the bottom quartile fall well below. However, Intrinsic Value: Projected FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current Intrinsic Value: Projected FCF of $1.49 is 45.6% 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 Intrinsic Value: Projected FCF mean?
A high Intrinsic Value: Projected FCF can signal that a stock is expensive relative to its fundamentals. Intrinsic Value: Projected FCF is the stock value based on a projected free cash flow model. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median Intrinsic Value: Projected FCF is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current Intrinsic Value: Projected FCF is $1.49. 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 $10.25, compared to a current price of $20.50 — trading 100% above its estimated fair value. The current Intrinsic Value: Projected FCF is $1.49 and 45.6% below the Aerospace & Defense industry median of 2.74. 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 Intrinsic Value: Projected FCF calculated?
Intrinsic Value: Projected FCF is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEF), the current Intrinsic Value: Projected FCF is $1.49 as of Aug. 30, 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 $20.50 is trading 100% above its estimated GF Value™ of $10.25.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEF:
Intrinsic Value: Projected FCF: $1.49
GF Value™: $10.25 vs. price of $20.50 (100% above fair value)
Industry Position: 45.6% below the Aerospace & Defense median (#178 of 197)
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
Get the complete analysis for RYCEF
Intrinsic Value: Projected FCF is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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