. Rolls-Royce (LSE: RR) The price of the shares was in an unusual run, doubled in the last 12 months and increased by 475% in two years. Investors who bought in Lows saw stunning phrases, but cannot maintain this burglared pace forever.

Rolls-Royce shares look exorbitant with the final price to profit (P/E) 44 times. It is much above the average FTSE 100 of 15 times. The danger is that Star performance is blinded by investors for future risk.

Can this FTSE 100 leaflet continue?

Analysts expect that a forceful enhance in earnings will drop to 28.6 times in the whole 2025, based on a profit forecast for a consensus (EPS) of 21p. By 2027, it is forecasted that EPS will reach 29.3 pens. This would reduce P/E forward to about 20 times. So, although the actions are exorbitant today, they can grow into a quote if the company continues.

But if it isn’t? It will hurt. Transformational CEO of Tufan Eggilgiç moved “Burning Platform” The phase is successful, but now it must ensure that the company works at full speed to provide investors.

The financial results were impressive. The results of half a year for 2024 showed that revenues increased from 7 billion GBP to 8.2 billion GBP. Operational profit jumped from 670 million GBP to 1.15 billion GBP. The margin increased from 9.7% to 14%.

Where will the next supply be?

The debt, once a solemn problem, is no longer urgent problems. At the end of 2022, the net debt was 3.3 billion pounds. After all, the count was only 820 million pounds. Free cash flows are expected from 2.1 billion GBP to 2.2 billion GBP for the whole year, strengthening the company’s financial position. Dividends have returned, though with low performance of the 1.1%forecast.

15 analysts covering Rolls-Royce have a 124-month median median 640p. This is a 9% enhance compared to today’s 592 pence. I am afraid that nobody will double their money.

However, forecasts differ significantly. The highest estimation is 850p, which is a potential enhance in 44%. The lowest is 540p, which means a decrease in almost 9%. As with any supply, it can go anywhere in the low period.

The sentiment of the analyst remains forceful. Of the 17 analysts, nine evaluate it as a forceful purchase, two as a purchase, four as holding and only one recommends sales.

Rolls-Royce obtained another strengthening on January 24, announcing an eight-year agreement worth 9 billion pounds with the Ministry of Defense, designing and supporting nuclear reactors for the Royal Navy submarine fleet.

What can it stop?

Despite these positives, the risk remains. Any disappointment of profits can strongly achieve the price of shares. External threats, such as global air slowdown, technical problems with air engines or a return to inflation can squeeze performance. Geopolitical tensions, including a potential trade war under Donald Trump, add further uncertainty.

Improving the company’s profitability, forceful cash flows and huge defensive winning suggest a vivid future. Investors will receive a clearer picture when Rolls-Royce publishes the year-round results on February 27.

I would still buy Rolls-Royce, but only with a minimum five-year view, because hence it can become more fallen. Because I already have stocks, I keep.