Rolls Royce Holdings Plc Stock Current Valuation
| RR Stock | 586.80 5.80 1.00% |
Valuation analysis of Rolls Royce Holdings helps investors to measure Rolls Royce's intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. At present, Rolls Royce's Free Cash Flow is projected to increase significantly based on the last few years of reporting. The current year's Total Cash From Operating Activities is expected to grow to about 2.6 B, whereas Cash And Short Term Investments are forecasted to decline to about 2 B. Fundamental drivers impacting Rolls Royce's valuation include:
Enterprise Value 50.2 B | Enterprise Value Ebitda 13.6376 | Price Sales 2.7857 | Forward PE 3.3 K | Trailing PE 20.75 |
Fairly Valued
Today
Please note that Rolls Royce's price fluctuation is very steady at this time. Calculation of the real value of Rolls Royce Holdings is based on 3 months time horizon. Increasing Rolls Royce's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Rolls stock is determined by what a typical buyer is willing to pay for full or partial control of Rolls Royce Holdings PLC. Since Rolls Royce is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Rolls Stock. However, Rolls Royce's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 586.8 | Real 558.34 | Hype 584.33 |
The real value of Rolls Stock, also known as its intrinsic value, is the underlying worth of Rolls Royce Holdings Company, which is reflected in its stock price. It is based on Rolls Royce's financial performance, growth prospects, management team, or industry conditions. The intrinsic value of Rolls Royce's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, or news.
Estimating the potential upside or downside of Rolls Royce Holdings PLC helps investors to forecast how Rolls stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Rolls Royce more accurately as focusing exclusively on Rolls Royce's fundamentals will not take into account other important factors: Rolls Royce Holdings PLC Company Current Valuation Analysis
Rolls Royce's Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Current Rolls Royce Current Valuation | 50.23 B |
Most of Rolls Royce's fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Rolls Royce Holdings PLC is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.
| Competition |
In accordance with the recently published financial statements, Rolls Royce Holdings PLC has a Current Valuation of 50.23 B. This is much higher than that of the Aerospace & Defense sector and 101.15% higher than that of the Industrials industry. The current valuation for all United Kingdom stocks is significantly lower than that of the firm.
Rolls Current Valuation Peer Comparison
Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Rolls Royce's direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Rolls Royce could also be used in its relative valuation, which is a method of valuing Rolls Royce by comparing valuation metrics of similar companies.Rolls Royce is currently under evaluation in current valuation category among its peers.
Rolls Royce ESG Sustainability
Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Rolls Royce's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Rolls Royce's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
Rolls Fundamentals
| Return On Asset | 0.0461 | ||||
| Profit Margin | 0.13 % | ||||
| Operating Margin | 0.13 % | ||||
| Current Valuation | 50.23 B | ||||
| Shares Outstanding | 8.5 B | ||||
| Shares Owned By Insiders | 0.04 % | ||||
| Shares Owned By Institutions | 64.35 % | ||||
| Price To Sales | 2.79 X | ||||
| Revenue | 16.49 B | ||||
| Gross Profit | 2.76 B | ||||
| EBITDA | 3.74 B | ||||
| Net Income | 2.41 B | ||||
| Total Debt | 5.76 B | ||||
| Book Value Per Share | (0.27) X | ||||
| Cash Flow From Operations | 2.48 B | ||||
| Earnings Per Share | 0.28 X | ||||
| Price To Earnings To Growth | 0.54 X | ||||
| Target Price | 574.11 | ||||
| Number Of Employees | 41.4 K | ||||
| Beta | 1.81 | ||||
| Market Capitalization | 49.65 B | ||||
| Total Asset | 31.51 B | ||||
| Retained Earnings | (7.21 B) | ||||
| Working Capital | 3.24 B | ||||
| Net Asset | 31.51 B |
About Rolls Royce Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Rolls Royce Holdings PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Rolls Royce using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Rolls Royce Holdings PLC based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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Rolls Royce financial ratios help investors to determine whether Rolls Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Rolls with respect to the benefits of owning Rolls Royce security.