The Rolls-Royce share price has never been higher. Is that a danger signal?
This month has seen aeronautical engineer Rolls-Royce (LSE: RR) move in a now-familiar direction: up. The Rolls-Royce share price hit yet another all-time high.
That means it now stands an incredible 1,471% higher than it did just five years ago.
That means that the Rolls-Royce share price-to-earnings (P/E) ratio now stands at 39.
To me, that looks expensive. After all, this is not some hot growth stock, but a mature company in a mature industry.
However, as the share price pushing ever higher in recent years has demonstrated, at least some investors reckon that Rolls is looking cheap, not expensive.
Could they be right?
Possibly. After all, the company has improved its financial…
