Since Tufan Eggilgic took over as Rolls-RoyceCEO (LSE: RR) in January 2023. His price of shares increased by 1 083%. At regular intervals during this trip, investors asked if the shares reached their peak.

And right-investors should always rigorously assess the proposal of their resources. After all, two elements are not the same. The price is regardless of the fact that the market will pay for shares, and the value reflects the basic value of operations.

It is therefore possible that after an augment of 1000%+ there is no value in Rolls-Royce actions. Or it may happen that there are many values ​​left because the company still increases its basic value.

I immersed myself deeply in the industry and launched a few key numbers to find out the truth here.

Is the price of the action currently overstated?

In terms of key price ratio, Rolls-Royce shares are now turned to 15.3.

This is a lower group of competitors, despite a huge price augment since Erginbillgic became the general director.

These peers make up Northrup Grumman at 21.3, BAE systems at 26.7, RTX at 34.8 and Transydigm at 44.9.

So Rolls-Royce still looks very underestimated on this basis.

Do the last results confirm this view?

At the end of the first year, Egginbillic as a CEO at the basis of operating profit increased by 144% year -on -year to 1.590 billion GBP. This appeared at the back of the operating margin doubles to 10.3%.

These, in turn, caused a record free cash flow of 1.285 billion GBP – by 154% compared to 2022. This can in itself be a powerful driving force, which is why he proved.

At this point, its forecasts in 2024 were the basic operating profit of 1.7 billion GBP-2 billion GBP and free cash flows of 1.7 billion GBP-1.9 billion GBP.

However, its actual results in 2024 exceeded the operational profit, which forecasts – at 2.464 billion GBP, which is an augment of 55% in 2023. Free cash flows also dramatically overflow the previous forecast – at 2.425 billion GBP, which is an augment of 89% in 2023.

What are the current growth forecasts?

2025 forecasts at this stage had 2.7 billion GBP-2.9 billion GBP of operating profit and 2.7 billion GBP-2.9 billion GBP free cash flows.

His intraperior forecasts (until 2028) concerned operating profit of 3.6 billion GBP-3.9 billion GBP and free cash flows of 4.2 billion GBP-4.5 billion GBP. The risk of this is a failure in any basic company products, which can damage its reputation and prove exorbitant.

To say that, Rolls-Royce clearly said that these goals are “Mile stone, not a target”. Added: “We see strong growth prospects going beyond time.”

Indeed, the results of H1 2025, the basic forecast of operating profit increased to 3.1 billion pounds-3.2 billion GBP and its forecast of free cash flows to 3 billion £ -3.1.1 billion GBP!

It was even more striking for me that several of these basic performance measurement forecasts look extremely conservative. In particular, for example, the operational margin is 19%compared to the 2028 forecast of 15-17%.

My view of the investment

I think that Rolls-Royce will consistently insufficiently present its key growth indicators to later deliver.

UBS He said the same kind of things after H1 results. Specifically: “Consensus probably updated 2028 and long -term estimates in response to this print [forecast]. “

Considering that the forecasts, which in my opinion will probably be apologized, are already perfect, I will soon buy more shares.