It was a fantastic year for aviation engineer shareholders Rolls-Royce (LSE: RR). This month, Rolls-Royce shares have broken the price of 10 GBP for the first time in history (although they have fallen slightly since then).

This reflects the amazing turning story in Rolls-Royce, which she saw FTSE 100 The price of the company’s shares raises 969% In just five years.

This type of performance is unique – and extremely attractive for many investors, including me. So I should now put some money into Rolls-Royce shares, am I too behind schedule?

Growing into the current quote

Before he wondered if participation could enhance from here, it is worth stopping to ask if the company deserves even the current price.

The current price rate for profit (p/e) for Rolls is 33. It looks high on me, especially in a company with a long history of mixed financial results, which operates in a mature industry.

Can it be justified?

Rolls has defined ambitious financial goals that mean that its prospective valuation may be cheaper than suggested by the current p/e coefficient.

For example, by 2028, he expects it to reach 4.2 billion pounds-4.5 billion GBP annual free cash flows. It would be 75% -88% higher than last year. Earnings and free cash flows are different, but this goal helps to show why investors are excited to potential in the company.

The goal is one thing – but hitting it is another. Here, however, the current management has achieved good results so far. Although the company operates in mature industries, it draws prizes for increased customer demand in all three key business areas: civil aviation, defense and energy production.

If the company continues to work strongly, the shares may enhance in their current quote, I think it is partly based on expectations about higher profits. This may potentially even justify a higher price of shares. After achieving 10 pounds, there is a reliable case for the participation to enhance higher in the next few years.

The risk profile makes me feel uncomfortable

But although I see the path to a higher price-I think it is credible-I have no plans to buy any Rolls-Royce shares for my portfolio.

The reason is straightforward: I do not think that the current price of shares reflects the risk profile in a way that makes me convenient.

Take an external image of demand. I expect that the demand for defense will remain raised in the coming years. The energy command can also, although sometimes it has become a wise part of government expenditure, and gigantic capital projects can be postponed if the economy is penniless.

The demand for civil aviation, as history has shown again and again, recently during a pandemic, it can shield overnight in a way that engine manufacturers cannot influence, let alone control. This led to your knees five years ago – and in my opinion it remains a critical risk.

Meanwhile, I see a different risk. The almost doubling free cash flow is great – but where does the money come from? Cost savings can go so far.

If the company raises the prices too gigantic, customers can shop more. There are not many engine manufacturers – but there are several, and gigantic airlines know how to lead a strenuous opportunity.