Member Info for Mike123467

No apostrophe in smrs.

You're wasting your time talking about valuation on this board - either no-one understands it or considers it irrelevant. This stock is still not cheap.

Which year?

Today's price action (chart) is exactly the same as results day back in Feb.

....and trees grow to the sky, of course.

3.6

Consensus is 3.6bn pre tax.

Still on a per of almost 30 x on January 28 eps (until they are revised down)

Pratt and RR share several component suppliers. Supply chain issues are still a problem in the industry.

Clearly in your world, stock prices don't go ex-dividend!

You are an annoying and pompous idiot, retirement.

No, been short since last week.

Rally over, downtrend resumes next week.

Svend, you might be right - obviously all of the analysts who supply their figures to RR will have have taken all of this into account. On a different note, it is unlikely that SMRs will contribute to revenue (and certainly not free cash flow) any time in the next 6-7 years (at least).

Have a look at the figures yourself, on the company website - here is the link.

https://www.rolls-royce.com/investors/analyst-consensus.aspx

They are not my figures - every month RR updates and publishes analyst consensus on a whole raft of operational and financial indictors. Here is the link.

https://www.rolls-royce.com/investors/analyst-consensus.aspx

"And the £30 “lunacy” bit? Only if you freeze earnings where they were three refits ago."

Er, no. It's already on 70x earnings for the numbers to be reported in Feb 2029!!

I always respect your thoughtful (and polite) comments, Svend, but as with many on this forum, you forget that valuations matter in investment.

It's been a crazy day for this stock, not helped by the over-enthusiastic opening.

The analyst consensus EPS figure for FY28 is 42p. (These figures are gathered every month by RR). At today's price, for earnings figures 3 years in the future, the stock is trading at 26X. At £30, it would 72x. Palantir's valuation is worse, but why would we compare one over-priced stock to another? Rolls has shown that over-valued stocks can reach even greater levels of valuation, but not forever. High valuations are a guarantee of low future returns.

All of which is well and truly in the price in my opinion. Bizarrely, this type of stock is often a better short term play than long term. High valuations, like this stock possesses, are guarantees of low long term returns. But we'll see - mostly I distrust the markets - especially the high momentum stocks which have dominated the markets this year, and Rolls is one of them. Can over-valued stocks continue to rise? Of course, but not forever, and the idea of £30 in a few years (= PE of 100x) is just lunacy.

Yes! The last time worked out very well, I hope the gods continue to smile!