The narrative around recently Rolls-Royce (LSE:RR) share price is probably as good as it’s ever been. We had fun, time to hide. But don’t we appreciate it?

The FTSE100 The engineering power plant is Britain’s biggest post-pandemic superstar. The company’s shares are up 1,116% in five years. This would turn a £10,000 investment into £121,600. Which shows how just one successful action can aid transform retirement. If you arrive early enough.

Such growth cannot last forever. When the market capitalization reached £100 billion, investors became cautious. Especially since the price-to-earnings ratio is at a staggering 65.

Could FTSE 100 shares surprise us again?

But Rolls-Royce shares are rising again. They are up 13% in the last month and the market capitalization now stands at £112 billion. At the same time, the P/E ratio dropped to 44. It is still very high, but not as risky as before. What’s going on?

American investors wouldn’t tiptoe around this issue. Witness the excitement of the aviators Tesla, Nvidia and, of course, SpaceXthe latter of which was made public on Friday (June 12).

Elon Musk’s intraplanetary vehicle dominated the headlines. Much of the commentary, including mine, has focused on how the stock seems overpriced given the returns it is making (or rather not making). However, this did not prevent it from jumping out of the blocks and jumping by another 16.6% on Monday.

Americans dream gigantic. The British are more cautious. Probably a tough experience. But are we in danger of underestimating Rolls-Royce as a result?

Yes, it flies very high, yes, it is costly, and yes, it is fortunate that its civil aviation, defense and power systems divisions are now in an ideal place. But Rolls also has a brilliant CEO in Tufan Erginbilgic and huge recent development opportunities in tiny modular reactors (SMRs), or mini-nuclears.

It is securing contracts in the UK and Czech Republic, and we have just learned that it has struck a deal to develop SMRs capable of powering factories, data centers and military bases in Japan. News quickly emerged that Sweden was also interested.

Is the stock worth the price?

They are still there huge challenges. SMR technology is still unproven, the reactors are not inexpensive to build, at a cost of £2.2 billion each, and Rolls faces stiff competition to commercialize the technology. But the reward is huge. Given the massive energy demand of AI data centers, Erginbilgic estimates that the global SMR market will be worth over $1 trillion. He claims that SMR offers have “potential” to make Rolls-Royce the most valuable company in Britain. This would mean at least a doubling of market capitalization.

Other divisions could be released. Airplane engines are struggling with technical problems and United Airlines I just accused Rolls of “groove” carriers. Peace in Iran and Ukraine, while welcome, could hit defense demand. Artificial intelligence may turn out to be a bubble, and data center development may stall. However, I still think Rolls-Royce stock is worth considering today. Even at this price.

Is it worth investing £5,000 in Rolls-Royce Plc now?

If investing expert Mark Rogers and his team have stock advice, it can pay to listen. After all, Twelfth Magpie’s flagship Share Advisor newsletter, which it has run for almost a decade, provides thousands of paying members with the best share recommendations from across the UK and US markets.

Mark believes there are 6 standout stocks that investors should consider buying right now. Want to see if Rolls-Royce Plc made the list?

Harvey Jones owns shares in Nvidia and Rolls-Royce Holdings.