RYCEF (Rolls-Royce Holdings) 1-Year Sharpe Ratio: 1.21 (As of Jul. 15, 2026)

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RYCEF Rolls-Royce Holdings PLC RYCEF
69 GF Score
Price $18.63
GF Value $8.28
Valuation Significantly Overvalued
! 5 Warning Signs
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What is Rolls-Royce Holdings 1-Year Sharpe Ratio?

Rolls-Royce Holdings RYCEF 69 1-Year Sharpe Ratio is 1.21 as of Jul. 15, 2026. GuruFocus rates RYCEF with a GF Score™ of 69/100 and a GF Value™ of $8.28 (Significantly Overvalued). The stock has 5 warning signs investors should review.

The 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk over the past year. As of today (2026-07-15), Rolls-Royce Holdings's 1-Year Sharpe Ratio is 1.21.

Rolls-Royce Holdings  (OTCPK:RYCEF) 1-Year Sharpe Ratio Explanation

The 1-Year Sharpe Ratio inidicates the risk-adjusted return of an investment over the past year. It is calculated as the annualized result of the average monthly excess return divided by its standard deviation over the past year. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.

The greater a portfolio's Sharpe Ratio, the better its risk-adjusted performance. A negative Sharpe Ratio means the risk-free rate is greater than the portfolio’s historical or projected return, or else the portfolio's return is expected to be negative.

Rolls-Royce Holdings 1-Year Sharpe Ratio Related Terms

RYCEF vs SPCX, GE, RTX: 1-Year Sharpe Ratio Comparison

For the Aerospace & Defense subindustry, Rolls-Royce Holdings's 1-Year Sharpe Ratio, along with its competitors' market caps and 1-Year Sharpe 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 1-Year Sharpe Ratio vs Aerospace & Defense Industry

For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's 1-Year Sharpe Ratio distribution charts can be found below:

* The bar in red indicates where Rolls-Royce Holdings's 1-Year Sharpe Ratio falls into.


RYCEF
69GF Score
Rolls-Royce Holdings PLC RYCEF
1-Year Sharpe Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
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Rolls-Royce Holdings 1-Year Sharpe Ratio Calculation

The 1-Year Sharpe Ratio measures the performance of an investment such as a stock or portfolio compared to a risk-free asset. A stock / portfolio's 1-Year Sharpe Ratio can be calculated by dividing the difference between the one-year returns of the investment and the risk-free rate, by the standard deviation of the investment returns over one year.

Frequently Asked Questions Learn more about 1-Year Sharpe Ratio →
What does a 1-Year Sharpe Ratio of 1.21 mean?
Rolls-Royce Holdings (RYCEF) has a 1-Year Sharpe Ratio of 1.21 as of Jul. 15, 2026. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Rolls-Royce Holdings and its competitors.
Is Rolls-Royce Holdings' 1-Year Sharpe Ratio too high?
Rolls-Royce Holdings' current 1-Year Sharpe Ratio is 1.21. Overall, Rolls-Royce Holdings has a GF Score™ of 69/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Rolls-Royce Holdings' 1-Year Sharpe Ratio compare to SPCX and GE?
Rolls-Royce Holdings' 1-Year Sharpe Ratio of 1.21 can be compared against companies in the Aerospace & Defense industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 1-Year Sharpe Ratio for an Aerospace & Defense company?
A good 1-Year Sharpe Ratio depends on the Aerospace & Defense industry context. However, 1-Year Sharpe Ratio 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 1-Year Sharpe Ratio mean?
A high 1-Year Sharpe Ratio can signal that a stock is expensive relative to its fundamentals. 1-Year Sharpe Ratio measures the additional return that an investor receives per unit of increase in risk. View historical data for Rolls-Royce Holdings and its competitors. Rolls-Royce Holdings's current 1-Year Sharpe Ratio is 1.21. 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 $8.28, compared to a current price of $18.63 — trading 125% above its estimated fair value. The current 1-Year Sharpe Ratio is 1.21. Rolls-Royce Holdings' overall GF Score™ is 69/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 1-Year Sharpe Ratio calculated?
1-Year Sharpe Ratio is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEF), the current 1-Year Sharpe Ratio is 1.21 as of Jul. 15, 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 $18.63 is trading 125% above its estimated GF Value™ of $8.28. GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.

Key valuation signals for RYCEF:

  • 1-Year Sharpe Ratio: 1.21
  • GF Value™: $8.28 vs. price of $18.63 (125% above fair value)
  • GF Score™: 69/100 with 5 warning signs

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 Holdings Business Description

Address 90 York Way, Kings Place, London, GBR, N1 9FX
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.
69GF Score

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1-Year Sharpe Ratio is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$18.63
Price
$8.28
GF Value