Rolls-Royce HoldingsRYCEF -0.90%71 PB Ratio is 41.28 as of Jun. 25, 2026, which is 333% above its 10-year median of 9.54. 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 339 Aerospace & Defense companies, Rolls-Royce Holdings ranks worse than 99.12% on this metric.
Rolls-Royce Holdings PLC stock PB Ratio (=43.2) is close to 10-year high of 43.2.
The historical rank and industry rank for Rolls-Royce Holdings's PB Ratio or its related term are showing as below:
RYCEF'
s PB Ratio Range Over the Past 10 Years
Min: 2.38 Med: 9.54 Max: 43.95
Current: 41.86
During the past 13 years, Rolls-Royce Holdings's highest PB Ratio was 43.95. The lowest was 2.38. And the median was 9.54.
RYCEF's PB Ratio is ranked worse than 99.12% of 339
companies
in the Aerospace & Defense industry
Industry Median: 3.7
vs RYCEF: 41.86
During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Rolls-Royce Holdings was 41.90% per year. The lowest was -47.00% per year. And the median was 3.00% per year.
Back to Basics: PB Ratio
Rolls-Royce Holdings (OTCPK:RYCEF) PB Ratio Explanation
The PB Ratio works the best for the businesses that earn most of their profit from their assets, e.g. banks and insurance companies.
Be Aware
Some businesses have very light assets, such as software companies or insurance agencies. The PB Ratio does not work well for these companies. Some companies even have negative equity, so the PB Ratio cannot be applied to them.
Rolls-Royce Holdings PB Ratio Related Terms
Rolls-Royce Holdings PB Ratio Historical Data
* Premium members only.
The historical data trend for Rolls-Royce Holdings's PB 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.
For the Aerospace & Defense subindustry, Rolls-Royce Holdings's PB Ratio, along with its competitors' market caps and PB 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 PB Ratio vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's PB Ratio distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's PB Ratio falls into.
The PB Ratio, or Price-to-Book ratio, or Price/Book, is a financial ratio used to compare a company's market price to its Book Value per Share. It is a ratio widely used to value stocks.
* 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.
It can also be calculated from the numbers for the whole company:
A closely related ratio is called Price-to-Tangible-Book. The difference between Price-to-Tangible-Book and PB Ratio is that book value other than intangibles are used in the calculation.
Rolls-Royce Holdings (RYCEF) has a PB Ratio of 41.28 as of Jun. 25, 2026. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Rolls-Royce Holdings and its competitors. This is 333% above median its historical median of 9.54. Over the past decade, Rolls-Royce Holdings' PB Ratio has ranged from 2.38 to 43.95. According to the industry distribution chart, Rolls-Royce Holdings ranks #336 out of 339 companies in the Aerospace & Defense industry, placing it in the top 99.1%.
Is Rolls-Royce Holdings' PB Ratio too high?
Rolls-Royce Holdings' current PB Ratio of 41.28 is 333% above median its 10-year median of 9.54. Over the past 10 years, this metric has ranged from a low of 2.38 to a high of 43.95. The Aerospace & Defense industry median PB Ratio is 3.70. Rolls-Royce Holdings' value of 41.28 is 1015.7% above this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #336 out of 339 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' PB Ratio compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #336 out of 339 companies for PB Ratio. This places Rolls-Royce Holdings in the lower half of its industry. The industry median PB Ratio is 3.70. Rolls-Royce Holdings' value of 41.28 is 1015.7% above this benchmark. Historically, Rolls-Royce Holdings' own PB Ratio has ranged from 2.38 to 43.95 over the past decade. While the company's 10-year median is 9.54 vs. the industry median of 3.70, 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 PB Ratio for an Aerospace & Defense company?
The median PB Ratio among Aerospace & Defense companies is 3.70, based on 339 companies in the industry. Companies in the top quartile (top 25%) have a PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current PB Ratio of 41.28 is 1015.7% 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 PB Ratio mean?
A high PB Ratio can signal that a stock is expensive relative to its fundamentals. Price-to-Book ratio is the ratio of share price to a company's book value per share. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median PB Ratio is 3.70 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current PB Ratio is 41.28, which is 333% above median its own 10-year median of 9.54. 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 PB Ratio is 41.28, which is 333% above median its 10-year median of 9.54 and 1015.7% above the Aerospace & Defense industry median of 3.70. 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 PB Ratio calculated?
PB Ratio is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEF), the current PB Ratio is 41.28 as of Jun. 25, 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:
PB Ratio: 41.28 (333% above median its 10-year median of 9.54)
GF Value™: $8.27 vs. price of $18.00 (117.7% above fair value)
Industry Position: 1015.7% above the Aerospace & Defense median (#336 of 339)
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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