Key Stats for RHM Stock
- Past-Week Performance: -2.55%
- 52-Week Range: €688 to €2,008
- Valuation Model Target Price: €2,708
- Implied Upside: 46% over 1.9 years
What Happened?
Rheinmetall stock (RHM) fell 2.6% over the past week as European defence stocks consolidated after strong gains.
The move followed Reuters commentary emphasizing faster growth and relatively cheaper valuations among Asian defence manufacturers.
That shift especially mattered because Rheinmetall stock remains highly sensitive to valuation comparisons following prolonged defence sector outperformance.
Rheinmetall stock saw no changes to guidance, demand trends, margins, or the company’s long-term outlook during the period.
The pullback appears driven by sentiment and valuation sensitivity, not operational performance, reflecting an expectations recalibration.
Is Reihnmetall Stock Fairly Valued Right Now?
Under the valuation model shown, the stock is modeled using:
- Revenue Growth: 29.8%
- Operating Margins: 15.9%
- Exit P/E Multiple: 40.3x
The model assesses Rheinmetall through fiscal 2027, with outcomes depending on revenue growth, margin expansion, and exit multiple assumptions holding.
The model assumes 29.8% revenue CAGR, operating margins of 15.9%, and an exit P/E multiple of 40.3x.
Based on these inputs, the model estimates a €2,708 target price, implying 46.1% total upside and 21.6% annualized returns.
Execution requires sustained defence spending, backlog conversion, capacity expansion, and margin discipline across ammunition, vehicles, and systems businesses.
The current valuation reflects execution risk and sector sensitivity, leaving the stock exposed to volatility despite long-term defence spending trends.
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