Is Rolls Royce Rally Ending

Is Rolls Royce Rally Ending by Ashly Chole last updated on July 20, 2025

Is Rolls RoyceS Rally Running Out Of Steam?

When it comes to Rolls Royce stock, one thing is very clear now. The company will need to do something extraordinary to keep the current rally going.

In the last 5 years, the share price of Rolls Royce has moved from just 98p to an astonishing 9.38. To put this into perspective, Rolls Royce has gained almost 859% in the last 5 years.

Rolls Royce Stock Price Jumps 859%

When we compare a return of 859% with the returns from the FTSE 100 over the past 5 years, it becomes clear that RR is the winner.

If we look back, the key reason why Rolls Royce shares had such an amazing performance was that it became profitable. On top of that, the investors were also very optimistic about the future of Rolls Royce.

Since the year 2020, the total revenue of Rolls Royce has also jumped by 65%. But that's still not such a big change that could justify a return of 850%.

Meanwhile, the P/S multiple of the RR has also moved from 11 during 2020 to nearly 4.22. However, experts believe the revenue of the RR will reach 23.5 billion by the year 2028.

One thing is very clear The RR stock is trading at a high multiple, which puts it at risk of some correction. Meanwhile, the analysts believe that the EPS of Rolls Royce will reach 36p in the year 2028.

All of this means it's better to play it safe and not expect another major bull run in the Rolls Royce stock. Even if the Rolls Royce continues to move higher, its performance will be nothing compared to what we saw in the last 5 years.

Based on all these numbers, it's better to avoid the Rolls Royce as there are so many other stocks in the UK market. But for those who still want in on the Rolls Royce, they should look for a better entry.

It's not worth it to buy the Rolls Royce stock at record highs and then get stuck with the position for months or even years.