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Rolls-Royce Holdings PLC
OTC:RYCEF

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Rolls-Royce Holdings PLC
OTC:RYCEF
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Price: 18.3863 USD -1.68% Market Closed
Market Cap: $156.4B

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Jun 21, 2026.

Estimated DCF Value of one RYCEF stock is 7.3007 USD. Compared to the current market price of 18.3863 USD, the stock is Overvalued by 60%.

RYCEF DCF Value
7.3007 USD
Overvaluation 60%
DCF Value
Price $18.3863
Bear Case
Base Case
Bull Case
7.3007
DCF Value
Bear Case
Base Case
Bull Case
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DCF Value: 7.3007 USD

Present Value Calculation

This block is the starting point of the DCF valuation process. It calculates the present value of a company's forecasted cash flows based on selected operating model. Adjust key parameters like discount rate and terminal growth, and alter inputs such as revenue growth and margins to see their impact on valuation.

DCF Model
Base Case Scenario

The present value of cash flows over the next 5 years amounts to 15.7B GBP. The present value of the terminal value is 26.4B GBP. The total present value equals 42.1B GBP.
Forecast Period
Years
Discount Rate
%
Show All DCF Settings
Terminal Growth
%
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DCF Value Calculation

This stage translates the present value into DCF value per share. For firm valuation models, it adjusts present value for debt and assets to derive equity value (skipped if using equity valuation model). Finally, this equity value is divided by the number of shares to determine the DCF value per share.

Present Value to DCF Value
Capital Structure

Present Value 42.1B GBP
+ Cash & Equivalents 6.2B GBP
+ Investments 1.6B GBP
Firm Value 49.9B GBP
- Debt 2.8B GBP
- Minority Interest 27m GBP
Equity Value 47.1B GBP
/ Shares Outstanding 8.5B
Value per Share 5.534 GBP
GBP / USD Exchange Rate 1.3193
RYCEF DCF Value 7.3007 USD
Overvalued by 60%

Valuation Analysis

Sensitivity Analysis
DCF Value Sensitivity Analysis

Sensitivity Analysis assesses how changes in key factors like revenue growth, margin, and discount rate affect a stock's DCF value. By visualizing various scenarios, from significant downturns to optimistic growth, this tool helps you understand potential valuation shifts, aiding in risk assessment and strategic decision-making.

DCF Financials
Financials used in DCF Calculation

Revenue
23B 32.7B
Operating Income
4B 5.9B
FCFF
3.8B 4B

What is the DCF value of one RYCEF stock?

Estimated DCF Value of one RYCEF stock is 7.3007 USD. Compared to the current market price of 18.3863 USD, the stock is Overvalued by 60%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Utilizing the DCF operating model, Rolls-Royce Holdings PLC's future cash flows are projected and then discounted using a chosen discount rate to determine its Present Value, which is calculated at 42.1B GBP.

2. DCF Value Calculation. The company's capital structure is employed to derive the total Equity Value from the previously calculated Present Value of the cash flow. This Equity Value, when divided by the total number of outstanding shares, yields the DCF Value of 7.3007 USD per share.

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