Prediction: in 2026 the red-hot Rolls-Royce share price could turn £20,000 into…
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The Rolls-Royce (LSE:RR) share price has more than doubled over the past year. That would have turned £20,000 into almost £44,000. That’s the investing dream.
However, this is very unlikely to happen again in 2026. It’s simply a valuation issue. It’s a great company with a lot to be positive about, but a lot of that optimism is already priced in.
Let’s explore why.
Valuation is key
Rolls-Royce’s operational recovery is impressive, but the valuation leaves limited scope for further upside. Based on the figures provided, the shares trade on a forward price-to-earnings multiple of 44.1 times for 2025 and 38.2 times for 2026, using normalised earnings per share…
