For a mature company mentioned on the stock exchange for decades, Rolls-Royce (LSE: RR) has a very unusual chart of share prices. Rolls-Royce shares increased 51% So far this year. They are now 692% higher than five years ago.

In recent years, it seemed that the price of Rolls-Royce has just become higher. There were unevenness along the way, but the shoot was forceful.

Could it make sense to buy a bit for my portfolio today?

Looking at the future basics, and the rush was not passed

To start with, I should clearly say that I do not invest based on an action rush. I see it as a bit like passing the package: when the music stops, the mood can change very quickly.

So my choice whether to buy Rolls-Royce shares for my portfolio is based on what the commercial perspectives of the company look like, and not what the price of shares did.

Room for continuous growth

In tiny, I think Rolls-Royce looks well prepared in the future short-term and medium-term.

Civil aviation, defense and energy production benefit from the growing demand of customers. Business Rolls-Royce includes each of them and, thanks to higher demand, increased revenues. I expect it to be this way in the coming years, both in the field of defense and energy production.

The sale and service of civil aviation engines can also constantly see the boost, although in practice whether this happens depends on the passenger demand. He tends to a dramatic fall from time to time, for example because of a recession or event that reduces people’s confidence to fly.

The valuation can be arduous to justify

Rolls has set ambitious medium -term goals and provided so far well, hitting some of them in front of the schedule and determining the higher.

Thus, the investment case is for strongly acting activities operating in sectors to develop. Nevertheless, although I like it, Rolls-Royce is now sharing what looks like an aggressive valuation for me.

The price indicator is 30. It is much higher than I would be comfortable, paying for a mature company in a mature industry, which in my opinion is a fair description of Roll.

This is why I will not invest

One of the possible justification for this valuation is the potential for growth of earnings. Given the forceful demand of customers and aggressive plans of the company, this seems likely. If this happens, it can push Rolls-Royce, even from here.

But what if this does not happen?

It can be for internal reasons: Rolls is a sophisticated company with the sometimes extended project implementation, which has long been inconsistent when it comes to financial results.

External factors can also throw keys. Pandemic and related travel restrictions brought Rolls-Royce to the knees, and the actions fell on sale for pennies. Another unexpected sudden crisis in a journey can get out of blue at any time.

The valuation is too high for my comfort, so I will not invest.