If You Invested £5 in Rolls-Royce in 2020, Here's What It Would Be Worth Today

A £5 investment in Rolls-Royce Holdings (LSE: RR.) at its March 2020 crash low would be worth £115 today. That stark figure tells the story of one of the London Stock Exchange's most dramatic turnarounds – but raises fresh questions about whether the aerospace giant's meteoric rise can continue.

The company's shares closed at 839p on 22 May 2025, representing a staggering 2,300% surge from their pandemic nadir of 35p five years ago.

What began as a catastrophic collapse when Covid-19 grounded aircraft worldwide has morphed into a recovery story that has defied even the most bullish predictions.

£100 Investment Now Worth £885

A modest £100 stake during those dark days of 2020 would have quietly compounded to £885. Scale that up to £10,000, and today's value reaches £88,500 – a transformation achieved through nothing more than patient capital and impeccable timing.

Yet as Rolls-Royce's market capitalisation swells, a critical question emerges: should investors pile in now, or has the easy money already been made?

Rolls-Royce's Stock Forecasts: What Experts Are Saying

Frankly, there's no crystal-clear outlook. And that's nothing strange as far as stock volatility is concerned.

However, Rolls-Royce's stunning market comeback, with its share price soaring nearly eightfold since early 2023, is nothing short of a bullish marathon. And there's no denying that many investors have built confidence in its ability to keep thrusting upward in the near future.

Analysts are now weighing in with mostly bullish forecasts—some expecting shares to hit as high as 850p, while others suggest a more modest ceiling around 635p. Alongside strong earnings, the company recently secured a £9 billion defence contract and launched a £1 billion share buyback, both of which signal confidence in its long-term outlook.

Much of the credit goes to Chief Executive Tufan Erginbilgiç, whose laser focus on profitability and operational efficiency has delivered results ahead of schedule. The company smashed its 2027 profit targets two years early, whilst securing a £9 billion defence contract and launching a £1 billion share buyback programme.

These moves have bolstered confidence among institutional investors, with analysts setting price targets ranging from a modest 635p to an ambitious 850p. The company's transformation from pandemic casualty to market darling has been nothing short of remarkable.

Warning Signs Flash Amber

However, not all market watchers share the enthusiasm. Several analysts caution that Rolls-Royce shares may be approaching dangerous territory, with the stock potentially overvalued after its eightfold increase since early 2023.

The rapid appreciation has priced in much of the anticipated growth, leaving little margin for disappointment. External headwinds – from geopolitical tensions to supply chain disruptions – could yet derail the recovery narrative.

The Investment Dilemma

For potential investors weighing an entry point, the landscape presents both opportunity and peril. Whilst Rolls-Royce's fundamentals appear robust and its strategic positioning strong, the shares now trade at a premium that demands near-perfect execution.

The company's journey from 35p to 839p serves as both inspiration and warning – spectacular gains can materialise, but timing and temperament prove everything. Those considering a stake today face the eternal investor's paradox: the best opportunities often appear after the biggest moves have already occurred.

Whether Rolls-Royce can sustain its upward trajectory remains the £88,500 question that only time will answer.