Get ready for a Rolls-Royce share price crash
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As with any stock, the Rolls-Royce (LSE: RR) share price can go down as well as up. I thought that old truth is worth stating, as lately it’s only gone in one direction – like a stratosphere-bound rocket. Can it last?
Rolls-Royce shares are up 1,200% over the last five years, turning £10,000 into a spectacular £130,000 and potentially transforming people’s retirements all on its own. I’d have expected its momentum to flag by now, but it’s up 110% over the last 12 months. It still managed to climb 7% in the last month.
But surely this is as good as it gets? The stock trades on a towering price-to-earnings ratio of 61, streets ahead of the FTSE 100 average of around 18….
