Here's how much Rolls-Royce shares could be worth at the end of 2027

Rolls-Royce shares face a high-stakes forecast as investors weigh whether the engine maker can recapture momentum by the end of 2027. Since January 2023, CEO Tufan Erginbilgiç has steered a restructuring that helped the stock outperform, with a roughly 5% rise in 2026 year-to-date. With the current price around 1,250 pence, analysts are modeling possible outcomes for 2027 by applying a simple earnings multiple to the expected EPS. The analysis presents three scenarios—conservative, base, and optimistic—to illustrate potential paths for value and risk. In the bear case, shares could slip about 13% by end-2027 if Rolls-Royce misses earnings targets amid ongoing disruption. The base case assumes the firm hits market expectations for 2026 and 2027, guiding £4.0-£4.2 billion in underlying operating profit and £3.6-£3.8 billion of free cash flow for 2026. The bull case envisions a rally to about 1,530p, roughly 22% above today, if demand holds and forecasts beat. Brokers’ current targets sit near 1,492p, signaling optimism with caveats. Management emphasises resilience built into the business to withstand tougher external environments, yet a higher price depends on achieving targets and sustaining multiples. The geopolitical backdrop, including renewed Middle East tensions, could curb widebody flying hours and limit engine utilisation, potentially deflating earnings upside. Overall, the current valuation implies the stock must deliver meaningful earnings progress to justify the premium.