Rolls Royce Valuation
| RRU Stock | EUR 6.39 0.19 2.89% |
At this time, the company appears to be overvalued. Rolls Royce Holdings holds a recent Real Value of €5.35 per share. The prevailing price of the company is €6.39. Our model determines the value of Rolls Royce Holdings from analyzing the company fundamentals such as Shares Owned By Insiders of 0.10 %, return on asset of 0.0169, and Current Valuation of 14.94 B as well as examining its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that Rolls Royce's price fluctuation is somewhat reliable 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 6.39 | Real 5.35 | Hype 6.39 | Naive 6.09 |
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 Total Value Analysis
Rolls Royce Holdings plc is at this time estimated to have takeover price of 14.94 B with market capitalization of 13.99 B, debt of 4.11 B, and cash on hands of 5.81 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Rolls Royce fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
14.94 B | 13.99 B | 4.11 B | 5.81 B |
Rolls Royce Investor Information
About 64.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.23. Rolls Royce Holdings recorded a loss per share of 0.33. The entity last dividend was issued on the 23rd of April 2020. The firm had 2847:977 split on the 28th of October 2020. Based on the measurements of operating efficiency obtained from Rolls Royce's historical financial statements, Rolls Royce Holdings plc is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Rolls Royce Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Rolls Royce has an asset utilization ratio of 45.91 percent. This implies that the Company is making €0.46 for each dollar of assets. An increasing asset utilization means that Rolls Royce Holdings plc is more efficient with each dollar of assets it utilizes for everyday operations.Rolls Royce Ownership Allocation
Rolls Royce owns a total of 8.37 Billion outstanding shares. Over half of Rolls Royce's outstanding shares are owned by third-party entities. These third-party entities are typically referred to as corporate investors that secure positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulations than regular investors in Rolls Royce. Please watch out for any change in the institutional holdings of Rolls Royce Holdings as this could mean something significant has changed or is about to change at the company. Please note that no matter how many assets the company maintains, if the real value of the company is less than the current market value, you may not be able to make money on it.Rolls Royce Profitability Analysis
The company reported the revenue of 13.52 B. Net Loss for the year was (1.27 B) with profit before overhead, payroll, taxes, and interest of 2.76 B.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Rolls Royce's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Rolls Royce and how it compares across the competition.
About Rolls Royce Valuation
The stock valuation mechanism determines Rolls Royce's current worth on a weekly basis. Our valuation model uses a comparative analysis of Rolls Royce. We calculate exposure to Rolls Royce's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Rolls Royce's related companies.Rolls-Royce Holdings plc operates as an industrial technology company worldwide. Rolls-Royce Holdings plc was founded in 1884 and is headquartered in London, the United Kingdom. ROLLS ROYCE operates under Aerospace Defense classification in Germany and is traded on Frankfurt Stock Exchange. It employs 54500 people.
8 Steps to conduct Rolls Royce's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Rolls Royce's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Rolls Royce's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Rolls Royce's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Rolls Royce's revenue streams: Identify Rolls Royce's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Rolls Royce's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Rolls Royce's growth potential: Evaluate Rolls Royce's management, business model, and growth potential.
- Determine Rolls Royce's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Rolls Royce's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Complementary Tools for Rolls Stock analysis
When running Rolls Royce's price analysis, check to measure Rolls Royce's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Rolls Royce is operating at the current time. Most of Rolls Royce's value examination focuses on studying past and present price action to predict the probability of Rolls Royce's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Rolls Royce's price. Additionally, you may evaluate how the addition of Rolls Royce to your portfolios can decrease your overall portfolio volatility.
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