RR share price could move to £7 or £30.51 by 2031, with the midpoint at £22.81 if Rolls-Royce matches average FTSE 100 returns. That range leaves shareholders facing either a 53% loss or further gains from today’s £14.88 level.
Mark Rogers and his team at Twelfth Magpie Share Advisor set out the three paths around a stock that has already risen 943% in five years. John Fieldsend owns shares in Rolls-Royce, and for him the spread between the bear case and the bull case is the difference between a steep drop and another powerful run.
Rolls-Royce valuation gap
The current share price sits alongside a P/E ratio of 41, which is far from a cheap starting point for a £120bn manufacturer. That is why the forecast does not rest on one outcome: it depends on whether earnings growth keeps up with the current rating or whether that rating compresses.
The bear case to £7 assumes the market gives back most of the recent enthusiasm. The bull case to £30.51 implies an annualised gain of 15.5% a year, while the middle path at £22.81 reflects average Footsie performance over the period used in the calculation.
Footsie returns and 2031
The comparison point is the average FTSE 100 performance over five-year periods from 1984 to 2019, which came in at an annualised 8.92%. Applied to Rolls-Royce from the current £14.88 base, that produces the £22.81 mid-case for 2031.
Rogers also points to the company’s exposure to artificial intelligence through Power Systems and to higher military spending through its Defence division. Those areas help explain why the bull case exists at all, but the spread of possible prices shows how much depends on execution over the next few years.
John Fieldsend and the risk
For John Fieldsend, who owns shares in Rolls-Royce, the practical issue is simple: the stock already trades on high expectations, and the forecast leaves room for both a major setback and another strong rise. The next five years will decide whether the market keeps paying up for growth or pulls the valuation back toward the lower end of the range.
