Rolls-Royce (RYCEY.US) Price Target and Rating 2026/2027

20,70
-1,43%
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Rolls-Royce Price Target 2026: Analysts See 11% Upside

The average price target for Rolls-Royce is $22.94. This price target represents the analysts' view of the stock price over the next 12 months. The stock may be undervalued, because the price target is higher than the current price. The stock is 10,82% below the target, which can point to potential returns within the next 12 months if the analysts' view proves right. Also consider the stock's valuation ratios such as P/E, P/S and P/B, plus the technical analysis further down the page, for the full picture.

Is Rolls-Royce overvalued or undervalued?

Rolls-Royce is currently undervalued with a gap of 10.8% relative to the price target.


The current price is $20.70, which places Rolls-Royce in the undervalued category. The stock is considered undervalued when the price is below $20.65, and overvalued when the price exceeds $25.23.


The fair value range is defined as ±10% of the price target, because price targets are estimates rather than exact values. For Rolls-Royce, the fair value range lies between $20.65 and $25.23.


See the full price target analysis for Rolls-Royce →

About Rolls-Royce – Forsvar

Rolls-Royce Holdings plc er et industriteknologifirma, der driver forretning både i Storbritannien og internationalt. De tjener primært penge på fire områder: Civil Aerospace, Power Systems, Defence og New Markets. Inden for Civil Aerospace laver Rolls-Royce motorer til store passagerfly og mindre jetfly, og de sælger også service til dem bagefter. Power Systems udvikler og sælger komplette løsninger til strøm og fremdrift, især til skibe og industri. Defence-delen leverer motorer til militærtransport og ubåde. Derudover udvikler Rolls-Royce små modulære reaktorer (SMR) i deres New Markets-segment. Virksomheden vedligeholder, reparerer og overhaler også deres produkter. Rolls-Royce Holdings plc har en bred global rækkevidde. Read more about the company

Key Figures for Rolls-Royce

$ 170B Market cap
$ 23,2B Revenue
Forsvar Industry
42.08 P/E
7.36 P/S
43.00 P/B
USA Listed on exchange
Industri Sector

What kind of stock is Rolls-Royce?

Quality stock Momentum stock

Rolls-Royce is classified as a quality stock and momentum stock. This means the stock combines several attractive traits, strong financial health (Piotroski 7/9), and strong price momentum.

Score Overview for Rolls-Royce

💰 Value Score 17/100 (Very Low)
⭐ Quality Score 74/100 (High)
🚀 Momentum Score 93/100 (Very High)
📊 Total Score 61/100

⚠️ 2 red flags identified 2 critical

Our analysis has identified 2 potential risk factors in Rolls-Royce that investors should be aware of.

🚨 High debt: The debt-to-equity ratio is 1,000% – the company carries considerably more debt than equity, which raises the financial risk.
🚨 Falling earnings: Quarterly earnings have fallen 63% year over year – the company's profitability is under pressure.

📈 Valuation

Rolls-Royce trades at a P/E ratio of 42.1, which is above the market average. The forward P/E is 38.0 (10% lower), which suggests the market expects rising earnings. The P/S ratio is 7.4 (high — the market pays a premium for the revenue). The P/B ratio is 43.0. The PEG ratio is 2.51 — above 2.0 suggests the stock is expensive relative to its growth rate.

💵 Profitability & Growth

Rolls-Royce has a profit margin of 13.1% (solid) and an operating margin of 21.1%. Return on equity (ROE) is 114.5% — excellent return on equity. Return on assets (ROA) is 7.8%. The latest quarterly earnings grew -63.0% year over year — falling earnings.

🏦 Financial Health

The Piotroski score is 7 out of 9 — good financial health. Altman Z2 is 2.30 (middle zone — moderate). The debt-to-equity ratio (D/E) is 1,000.0% — high debt, which raises the risk.

Rolls-Royce Dividend 2026: 0.7% Dividend Yield

Dividend Key Figures for Rolls-Royce in 2026

Dividend yield
0.74%
Dividend per share
0.08 USD
Payout ratio
26.2%
Low
Dividend growth (5 years)
-93.1%
Avg. annual dividend (3 years)
1.09 USD

When does Rolls-Royce pay a dividend in 2026?

Latest ex-dividend date (traded without the dividend)
August 10, 2026
Next dividend payment
June 10, 2026
Latest payment date
September 25, 2026

How much does Rolls-Royce pay in dividends?

Rolls-Royce pays dividends to its shareholders. The most recently paid dividend was 0.08 USD per share, which corresponds to a dividend yield of 0.74%. Over the last 5 years, the annual dividend has fallen by 93.1%.

The payout ratio is 26.2%, which is low. This suggests the company prioritizes reinvesting in growth over dividend payments. There is good room to raise the dividend in the future.

Historical Dividend Payments for Rolls-Royce

We have registered dividend payments for Rolls-Royce since 2020-04-23. In that period the stock has paid a dividend 6 times, most recently on 2026-08-10. However, the stock does not qualify as a stable or sporadic dividend stock, because the dividend payments have been inconsistent in recent years.

Ex-datePayment dateAmountCurrencyPeriod
2026-08-102026-09-250.08USDUnknown period
2026-04-242026-06-100.07USDUnknown period
2025-08-112025-09-250.06USDUnknown period
2025-04-222025-06-230.08USDUnknown period
2020-11-30N/A1.95USDUnknown period
2020-04-23N/A0.09USDUnknown period

When Does Rolls-Royce Report Earnings?

The next earnings date for Rolls-Royce is not yet available. Check the company's investor calendar for more information.



Technical Analysis of Rolls-Royce 2026 – Signal: Strong Buy

Overall Technical Signal: Strong Buy

Based on trend analysis (SMA50/SMA200) and MACD trend (positive/negative on a daily + weekly basis). Updated August 6, 2026.

Trend Analysis of Rolls-Royce Holdings plc

Rolls-Royce Holdings plc is in a short-term uptrend. The price of $21.00 is 9.9% above the 20-day average ($19.10). Medium term, the picture is positive: the price is 13.6% above the 50-day average ($18.49). Long term, the stock is 25.4% above the 200-day average ($16.75), which confirms a long-term uptrend.

Golden Cross: The 50-day average (18.49) is above the 200-day average (16.75), which is a classic bullish signal for Rolls-Royce Holdings plc.

Is Rolls-Royce Holdings plc overbought or oversold?

Rolls-Royce Holdings plc has an RSI of 69.6. The stock shows positive momentum in the upper part of the neutral zone. Combined with the positive trend, this supports the bullish picture.

MACD Analysis for Rolls-Royce Holdings plc

Daily MACD: MACD is positive (0.509), which means the short-term trend is bullish (the 12-day EMA is above the 26-day EMA). MACD is above the signal line (0.304) by 0.205, which confirms rising momentum in the uptrend.

Weekly MACD: MACD5 is positive (0.910), which indicates a broader bullish long-term trend. MACD5 is above the signal line (0.690) by 0.220, which confirms rising long-term momentum.

Overall MACD assessment: Both the daily and weekly MACD are positive and above their signal lines. Trend and momentum confirm each other across time horizons – the strongest bullish signal.

Risk Profile for Rolls-Royce Holdings plc

Rolls-Royce Holdings plc has an annual standard deviation of 38.6%, which classifies the stock as medium risk. The price can swing noticeably when the market moves.

Overall Technical Conclusion for Rolls-Royce Holdings plc

Trend: Positive. The price trades above SMA50 and SMA200.

MACD trend (zero line): Daily bullish (0.509). Weekly bullish (0.910).

MACD momentum (signal): Daily rising. Weekly rising.

RSI: 69.6 – neutral.

Technical signal: Strong Buy

The price is in an uptrend (above SMA50/SMA200) and MACD is positive on both a daily and weekly basis. Trend and MACD trend confirm each other – the strongest technical buy signal.

Frequently Asked Questions About Rolls-Royce stock in 2026

Should you buy Rolls-Royce stock now?
Yes, the technical signal for Rolls-Royce is currently BUY. Rolls-Royce trades at $20.70 as of 8/6/2026. The overall technical signal is: Strong Buy. The technical analysis shows the following: MACD is positive (bullish trend) at 0.509 with rising momentum (signal: 0.304); RSI is at 69.6 (neutral zone); the stock is in a short-term uptrend (price above the 20-day average); the analyst price target of $22.94 points to 10.8% upside. The stock is in a broader uptrend (above SMA50/SMA200). This is a technical observation based on current data, not investment advice.
What is the price target for Rolls-Royce stock?
The average analyst price target for Rolls-Royce is $22.94. The current price is $20.70, which gives an upside of 10.8%. Based on this, the stock is considered undervalued. The fair value range (±10% of the price target) is between $20.65 and $25.23.
Is Rolls-Royce a dividend stock?
Yes, Rolls-Royce is a dividend stock with a dividend yield of 0.74%. The latest dividend was $0.08 per share. The latest ex-dividend date (traded without the dividend) was 8/10/2026. The payout ratio is 26.2%, which is considered sustainable. The next dividend payment is scheduled for 6/10/2026.
When does Rolls-Royce pay a dividend in 2026?
Rolls-Royce pays its next dividend on 6/10/2026. The latest dividend was $0.08 per share with an ex-dividend date of 8/10/2026. The dividend yield is 0.74%. The payout ratio of 26.2% points to a sustainable dividend with room to grow.
What is the risk of Rolls-Royce stock?
Rolls-Royce is rated as a stock with moderate risk. the annual standard deviation is 38.6%, which classifies the stock as moderate risk.
Is Rolls-Royce overvalued?
No, Rolls-Royce is considered undervalued based on the analyst price target (10.8% upside). Rolls-Royce has the following valuation ratios: a P/E ratio of 42.1 (highly valued), a P/S ratio of 7.4, a P/B ratio of 43.0. The analyst price target suggests that the stock is undervalued by 10.8%.
Is Rolls-Royce overbought?
No, Rolls-Royce is not overbought. RSI is at 69.6 (neutral zone). The technical indicators show: RSI is at 69.6 (upper neutral zone), which shows positive momentum but is not yet overbought. In addition, the price is 8.4% above the 20-day average (short-term uptrend). In addition, MACD is positive with rising momentum (bullish).
When is the next Rolls-Royce earnings report?
The date of the next earnings report for Rolls-Royce has not been published yet. Check the company's investor calendar for updates.
Is Rolls-Royce shorted?
There is currently no registered short interest for Rolls-Royce, or the data is not available.
Are insiders buying Rolls-Royce stock?
There is currently no registered insider trading for Rolls-Royce.
Is Rolls-Royce a good stock?
Based on our total score, Rolls-Royce is rated as a good stock with a total score of 61 out of 100. The stock scores above average on value, quality and momentum – it is among the top 39% in our database. The score is made up of Value: 17/100, Quality: 74/100, Momentum: 93/100. In addition: analysts see 10.8% upside to the price target; a dividend of 0.74%; technical signal: Strong Buy. Whether Rolls-Royce is a good investment depends on your time horizon, risk profile and portfolio. This is a data-driven observation, not investment advice.
What is the outlook for Rolls-Royce stock?
The outlook for Rolls-Royce based on current data: the average analyst price target is $22.94 (+10.8%); the stock is in an uptrend (above SMA50 and SMA200); the P/E ratio is 42.1 (high – the market expects growth). Keep in mind that stock prices are affected by many factors, including earnings reports, the economy and market sentiment. Past returns are no guarantee of future returns.
Why is Rolls-Royce stock rising?
Rolls-Royce is rising right now. The technical indicators show: the price is 8.4% above the 20-day average; MACD is positive with rising momentum (bullish signal). For the latest context, see our technical analysis, insider section and news overview above.
How high can Rolls-Royce go?
The average analyst price target for Rolls-Royce is $22.94, which corresponds to a potential gain of 10.8% from the current price of $20.70. Keep in mind that price targets are estimates, not guarantees. Actual price moves depend on earnings, market conditions and unexpected events.
How low can Rolls-Royce fall?
We lack enough history to give a specific floor for Rolls-Royce. Remember: past price swings are no guarantee for the future — a stock can fall further than the last 52 weeks suggest, especially on profit warnings, sector crises or a market crash. Use stop-loss orders and spread your portfolio to limit losses in single stocks.
What does Rolls-Royce do?
Rolls-Royce Holdings plc er et industriteknologifirma, der driver forretning både i Storbritannien og internationalt. De tjener primært penge på fire områder: Civil Aerospace, Power Systems, Defence og New Markets. Inden for Civil Aerospace laver Rolls-Royce motorer til store... The company belongs to the Industri sector, more specifically the Forsvar industry, is headquartered in USA, and is traded on the USA Stocks. See the key figures, earnings history and price development above to evaluate Rolls-Royce as an investment.
Did Rolls-Royce raise or lower its guidance?
Over the last 60 days we have not registered a guidance raise or cut from Rolls-Royce. The company can still adjust its guidance at quarterly reports or between reports — see the earnings history and the news overview above.
Is Rolls-Royce making money or losing money?
Yes, Rolls-Royce is making money, not losing it. The company has a profit margin (the share of revenue left over as profit) of 13.1% — which is solid. The operating margin (profit before interest and taxes) is 21.1%. At a P/E ratio of 42.1, you currently pay 42.1 dollars for every dollar of the company's annual earnings. A consistently profitable company is usually more resilient than growth stocks that are not yet making money.
Can Rolls-Royce go bankrupt?
The bankruptcy risk of Rolls-Royce is rated as moderate. Altman Z2 (a model for assessing financial distress) is 2.30 — that places the company in the middle zone. The Piotroski score (financial health 0-9, higher is better) is 7 — which is strong. Debt relative to equity is 1,000% (high). Remember: models like Altman Z2 are statistical — unexpected shocks (fraud, a sector collapse, lawsuits) can always happen. Spread your portfolio.
Does Rolls-Royce have a lot of debt?
Yes, Rolls-Royce has elevated debt relative to equity. The debt-to-equity ratio (D/E — interest-bearing debt to equity) is 1,000%. For the industri sector, anything above 150% counts as elevated — that raises the financial risk, especially if interest rates rise or earnings fall. Note: D/E levels are highly sector-specific — a bank at 300% debt is normal, a tech stock at 300% is extremely leveraged. Always compare with similar companies in the same sector. Can Rolls-Royce service its debt? Can service its debt without problems — the interest coverage ratio (how many times earnings can cover interest payments) is 14.2x, and the company has more cash than debt (net cash).