RYCEY · Intrinsic value
Is Rolls-Royce Holdings plc (RYCEY) overvalued or undervalued?
Rolls-Royce Holdings plc (RYCEY) trades at the delayed market price of $17.71 a share. That price already implies revenue growth of 23.6% a year for 5 years. TickerWorth's fair value is $12.22 a share (45% above fair value), as of Oct 19, 2026. It is a model estimate, and every input behind it is sourced below.
Model by Miraaj Patel · generated from market data · Updated Oct 19, 2026 · How these pages are made
Is RYCEY overvalued?
- Fair value
- $12.22
- Market price
- $17.71
- Downside to fair value
- 31.0%
- Verdict
- 45% above fair value
Reverse DCF: Today's price implies revenue growth of 23.6% a year for 5 years; our model assumes 12.1% a year on average over the same horizon.
What is RYCEY's TickerWorth Score?
Expensive vs our estimate — the business scores well
Compared with Industrials companies in US
Its strongest point: a profitable, high-quality business. Its weakest: looks expensive on the numbers.
- Value · 22 of 100
Cheaper than 22% of Industrials companies in US
- Price vs worth · 25 of 100
- Quality · 72 of 100
More profitable than 72% of Industrials companies in US
- Financial health · 57 of 100
Financially stronger than 57% of Industrials companies in US
- Growth · 36 of 100
Growing faster than 36% of Industrials companies in US
- Momentum · 62 of 100
Outperformed 62% of Industrials companies in US over the past year
Confidence: High confidence · Scored
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RYCEY DCF valuation: what the price assumes
At a recent price of $17.71, Rolls-Royce Holdings plc (RYCEY) trades 45% above TickerWorth's blended fair value of $12.22 per share — a discounted-cash-flow model cross-checked against peer multiples and asset value — meaning the market currently prices RYCEY overvalued vs our estimate of what the business is intrinsically worth. Our fair value sits below the market, an implied -31.0% move to close the gap if the business performs in line with our assumptions. This is an educational model, not a price target or a recommendation — the value moves with the inputs, which you can test yourself using the WACC slider below.
Read the full reasoning
One of the lenses behind that blended figure is a discounted-cash-flow model, which on its own values RYCEY at about $11.94 per share. The rest of this page walks through that DCF — its assumptions, reverse-DCF and discount-rate sensitivity — because it is the auditable anchor of the blend.
The valuation discounts Rolls-Royce Holdings plc's projected free cash flows at a weighted-average cost of capital (WACC) of 10.9%, with a long-run terminal growth rate of 2.5%. About 70% of the enterprise value comes from the terminal value — the portion beyond the explicit forecast window — which is typical for a stable, cash-generative business and a reminder that small changes in the discount rate or terminal growth assumption swing the intrinsic value meaningfully.
Running the DCF in reverse — solving for the growth the current price already assumes — the market is implying roughly 23.6% annual revenue growth for RYCEY. Our base case instead compounds to about 12.1% a year over the same forecast, so the market is pricing in materially faster growth than our base case. The reverse-DCF is a quick sanity check: it reframes 'is this stock cheap?' as 'do I believe the growth the price requires?' rather than arguing over a single point estimate of fair value.
Sensitivity matters more than any single number. Across a reasonable band of discount-rate assumptions, RYCEY's modeled DCF value ranges from about $9.48 to $16.48 per share. If that range still sits below today's price, the market is optimistic relative to the model across the whole band; if it brackets the price, the stock is roughly fairly valued on our assumptions. Use the interactive slider to see exactly where your own cost-of-capital view lands.
How to read this page: the DCF fair value is what Rolls-Royce Holdings plc would be worth if its cash flows grow as modeled and are discounted at the stated WACC. The assumptions table shows every input and its source; the reverse-DCF shows what the market believes; the sensitivity band shows how fragile the answer is. None of this is investment advice — it is a transparent, auditable framework for forming your own view of RYCEY's intrinsic value. Figures update as new filings and prices come in.
Every input behind RYCEY's DCF
| Input | Value |
|---|---|
| Base-year revenueLive feed — totalRevenue (TTM) | $30,877,610,000 |
| Base EBIT marginComputed — trailing operatingMargins, held roughly flat | 21.1% |
| Forecast revenue growthESTIMATEAssumption — TickerWorth's 5-year explicit forecast | 21% → 16% → 12% → 8% → 4% |
| Risk-free rateLive feed — US 10-year Treasury yield (^TNX) | 5.1% |
| BetaLive feed — yfinance, 5-year monthly beta vs the S&P 500 (clamped to 0.4–2.5) | 1.27 |
| Terminal growthESTIMATEAssumption — TickerWorth house default 2.5%, held below WACC | 2.5% |
| Diluted sharesLive feed — sharesOutstanding | 8,225M |
| Market priceLast known price · as of 2026-10-19 19:25 UTC | $17.71 |
Change RYCEY's assumptions
The discount-rate dial and the editable model
ProChange growth, margin and WACC yourself — Pro (7-day free trial, card required).
What does Rolls-Royce Holdings plc do?
What does it do?
Rolls-Royce Holdings plc designs and manages mission-critical power systems in the United Kingdom and internationally. The company operates through three segments: Civil Aerospace, Defence, and Power Systems. It operates in the Aerospace & Defense industry (Industrials sector), headquartered in United Kingdom. The company employs roughly 43,162 people.
How does it make money?
The business turns $23.2B in annual revenue into profit. Out of every $100 of sales, about $21 is left as operating profit (operating margin of 21.1%), after a 29% gross margin on the products/services it sells. After all costs, taxes and interest, 13.1% of revenue becomes bottom-line net profit.
Is it financially healthy?
Financially it looks mixed: carries moderate debt (1.5× equity), can just cover its short-term bills (1.2× current ratio), and is currently profitable.
RYCEY insider trading
Insider filings are available for US-listed companies only.
Common questions
What is RYCEY's intrinsic value?
TickerWorth's blended fair value for Rolls-Royce Holdings plc (RYCEY) is $12.22 per share, versus a market price of $17.71 (45% above fair value).
Is RYCEY overvalued or undervalued?
On our blended fair value RYCEY looks overvalued vs fair value at $17.71. This is an educational estimate, not advice.
What discount rate is used for RYCEY?
A WACC of 10.9% and a terminal growth rate of 2.5%.
Is Rolls-Royce stock undervalued?
TickerWorth's fair value for Rolls-Royce Holdings plc (RYCEY) is $12.22 against a market price of $17.71. Our read: 45% above fair value. This is a model estimate, not investment advice.
Rolls-Royce (RYCEY) DCF valuation and fair value
Our fair value for Rolls-Royce Holdings plc (RYCEY) is $12.22, built on a 10.9% discount rate (WACC) and 2.5% terminal growth. It blends our discounted-cash-flow model with other valuation lenses. Every assumption is listed on this page with its source.
What growth is priced into Rolls-Royce stock?
Today's price implies revenue growth of 23.6% a year for 5 years; our model assumes 12.1% a year on average over the same horizon. This is a reverse DCF: it holds our cash-flow model's other inputs and solves for the revenue growth that makes the model equal today's price of $17.71. A model estimate, not investment advice.
Rolls-Royce (RYCEY) insider trading
We have no recent SEC Form 4 insider filings on file for Rolls-Royce Holdings plc (RYCEY). Form 4 covers US-listed companies only.
Stocks below our fair value instead
Not investment advice. TickerWorth Score is a model output.
Educational tool. Every output reflects the assumptions shown — not a prediction and not investment advice. TickerWorth is not a licensed investment adviser, and these figures are estimates from public filings and market data that can be wrong.