Image source: Getty Images
It has been a simply stunning few years for Rolls-Royce (LSE: RR). Cast your mind back to 2020, when the FTSE 100 aeronautical engineer was battling a sudden unforeseen plunge in global demand for civil aviation.
At that point, the company rushed to shore up liquidity, scrapping its dividend and diluting existing shareholders by issuing billions of new shares.
Looking back from today, what a bargain those shares now look like!
They were sold for just 32p each, at a time when many investors were nervous about the long-term prospects for the business. Today, Rolls-Royce shares sell for over eleven times that amount.
They have soared 150% in the past year and now sit 20% higher than they did five years ago.
Looking from today’s perspective
With the benefit of hindsight, clearly Rolls-Royce shares were a screaming bargain back in 2020. After their incredible run up in price, they may now be overpriced.
…
