Over the past few years, one of the more significant alternative costs in my portfolio has sold my actions Rolls-Royce (LSE: RR) When the price still had a long way to run in the right direction.

Of course, no one knew how impressive participation in an air engineer would occur.

In fact, in the last few years, the efficiency of Rolls-Royce stock price has not been phenomenal. Over the past five years it has moved 517%.

So should I add access to my portfolio today? Here are three factors that I could see in increasing the stock price.

Strong investor’s rush

A profit of 517% sometimes happens for diminutive growth stocks. But for a vast, mature company in a mature industry it is very unusual.

Apparently, investors liked the Rolls investment matter, and the recent upgrade for commercial purposes did not hurt at all.

I think that this kind of enthusiasm can mean many buyers on the stock exchange and facilitate in increasing the escalate in Rolls-Royce share price.

As an investor, I like to invest in companies because I think they are underestimated in relation to their commercial perspectives, NO Because I expect others to buy. Although I think that investor’s rush can potentially facilitate you raise the price of Rolls-Royce shares, this does not encourage me to invest.

Solid customer demand

After a few very arduous years, the demand for client in the civil aviation sector has been reflected from the back and helped Rolls to achieve well in the last few years.

I think it can last, potentially meaning that demand remains increased both for the sale of recent engines and support for existing ones.

To say, several American airlines have recently reported softening the demand for a domestic client. If this trend turns out to be wider, it can be harmful to demand.

Rolls is not only civil aviation, as essential as for the company. It also has a vast defense business. Because European governments are still collecting defense expenses, I think this may be good news for the company’s revenues and profits in the defense sector.

More capable business

But so far business can develop in any year.

This helps the so -called highest line: how much money will the company be achieved on sale. However, what matters is what is called the lower end. These are basically company profits.

The price of Rolls-Royce shares increased partly because the company has set aggressive goals for improving the activity related to the result through performance drive.

If it works, earnings may escalate, potentially justifying a higher valuation.

Not for me now

Despite this, the company is already trading in 26 times.

It looks costly to me based on current performance. I am afraid that it does not offer me a sufficient margin of error if the company encounters unexpected turbulence.

During the pandemic we saw how the demand for civil aviation can suddenly fall dramatically for reasons outside of control. I see it as a continuous risk, so I have no investment plans.