Rolls-Royce HoldingsRYCEF +2.80%69 5-Year Yield-on-Cost % is 0.65 as of Jul. 04, 2026, which is 52% below its 10-year median of 1.35. GuruFocus rates RYCEF with a GF Score™ of 69/100 and a GF Value™ of $8.04 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 170 Aerospace & Defense companies, Rolls-Royce Holdings ranks worse than 64.71% on this metric.
Rolls-Royce Holdings's yield on cost for the quarter that ended in Dec. 2025 was 0.65.
The historical rank and industry rank for Rolls-Royce Holdings's 5-Year Yield-on-Cost % or its related term are showing as below:
RYCEF'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.43 Med: 1.35 Max: 10.26
Current: 0.65
During the past 13 years, Rolls-Royce Holdings's highest Yield on Cost was 10.26. The lowest was 0.43. And the median was 1.35.
RYCEF's 5-Year Yield-on-Cost % is ranked worse than 64.71% of 170
companies
in the Aerospace & Defense industry
Industry Median: 1.04
vs RYCEF: 0.65
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Rolls-Royce Holdings 5-Year Yield-on-Cost % Related Terms
RYCEF vs SPCX, GE, RTX: 5-Year Yield-on-Cost % Comparison
For the Aerospace & Defense subindustry, Rolls-Royce Holdings's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Rolls-Royce Holdings's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Rolls-Royce Holdings's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Rolls-Royce Holdings (RYCEF) has a 5-Year Yield-on-Cost % of 0.65 as of Jul. 04, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Rolls-Royce Holdings and its competitors. This is 52% below median its historical median of 1.35. Over the past decade, Rolls-Royce Holdings' 5-Year Yield-on-Cost % has ranged from 0.43 to 10.26. According to the industry distribution chart, Rolls-Royce Holdings ranks #110 out of 170 companies in the Aerospace & Defense industry, placing it in the top 64.7%.
Is Rolls-Royce Holdings' 5-Year Yield-on-Cost % too high?
Rolls-Royce Holdings' current 5-Year Yield-on-Cost % of 0.65 is 52% below median its 10-year median of 1.35. Over the past 10 years, this metric has ranged from a low of 0.43 to a high of 10.26. The Aerospace & Defense industry median 5-Year Yield-on-Cost % is 1.04. Rolls-Royce Holdings' value of 0.65 is 37.5% below this industry median. Based on the distribution chart, Rolls-Royce Holdings ranks #110 out of 170 companies in the Aerospace & Defense industry, which is below the industry midpoint. 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' 5-Year Yield-on-Cost % compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, Rolls-Royce Holdings ranks #110 out of 170 companies for 5-Year Yield-on-Cost %. This places Rolls-Royce Holdings in the lower half of its industry. The industry median 5-Year Yield-on-Cost % is 1.04. Rolls-Royce Holdings' value of 0.65 is 37.5% below this benchmark. Historically, Rolls-Royce Holdings' own 5-Year Yield-on-Cost % has ranged from 0.43 to 10.26 over the past decade. While the company's 10-year median is 1.35 vs. the industry median of 1.04, Rolls-Royce Holdings has consistently been below 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 5-Year Yield-on-Cost % for an Aerospace & Defense company?
The median 5-Year Yield-on-Cost % among Aerospace & Defense companies is 1.04, based on 170 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Rolls-Royce Holdings's current 5-Year Yield-on-Cost % of 0.65 is 37.5% 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 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Rolls-Royce Holdings and its competitors. For the Aerospace & Defense industry, the median 5-Year Yield-on-Cost % is 1.04 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Rolls-Royce Holdings's current 5-Year Yield-on-Cost % is 0.65, which is 52% below median its own 10-year median of 1.35. 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 $8.04, compared to a current price of $19.68 — trading 144.7% above its estimated fair value. The current 5-Year Yield-on-Cost % is 0.65, which is 52% below median its 10-year median of 1.35 and 37.5% below the Aerospace & Defense industry median of 1.04. 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 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Rolls-Royce Holdings (RYCEF), the current 5-Year Yield-on-Cost % is 0.65 as of Jul. 04, 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 144.7% above its estimated GF Value™ of $8.04.
GuruFocus considers Rolls-Royce Holdings to be Significantly Overvalued.
Key valuation signals for RYCEF:
5-Year Yield-on-Cost %: 0.65 (52% below median its 10-year median of 1.35)
GF Value™: $8.04 vs. price of $19.68 (144.7% above fair value)
Industry Position: 37.5% below the Aerospace & Defense median (#110 of 170)
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.
69GF Score
Get the complete analysis for RYCEF
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
RYCEF has been successfully added to your 