EN DE

Rheinmetall AG (RHM) Fair Value & Analysis

Industrials · DE · Market cap €44.9B · ISIN DE0007030009

What is Rheinmetall AG really worth?

RA Rheinmetall AG RHM · XETRA
Price€1,034
Fair Value€314.04
Upside−69.6%
Quality53/100

A solid business, but trading 229% above our fair value of €314.04.

Watch Rheinmetall AG for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card. Watch for free

Strengths

Healthy Growth (revenue 5y +11.1 %/yr)
Low debt · generates free cash flow

Risks

!Thin margins · 7.2% net margin
!Mixed vs. peers (6/15)
!Moderate moat 56/100
!Weak on dividend: 22 out of 100

For context

·1.11% dividend yield
Evidence: High Range €235.53 – €392.55

Fair value as of: Aug 29, 2026

From 26 valuation models · updated 6 days ago

Share price −13.9% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (€392.55). The favourable scenario is already priced in.
  • Solid but not exceptional quality (53/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

€1,969 €72.46 Fair Value €314.04 Jul 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 29, 2026.

How to read this chart

60‑month range €72.46 – €1,969 · fair‑value band €235.53 – €392.55 · the €1,034 price screens above the €314.04 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. Dashed = 300-day average. As of Aug 29, 2026.

Full chart & analysis →

Which stocks are undervalued right now? Check free Discover now →

Analysis

Rheinmetall AG (RHM) currently trades at €1,034, while our model-based Fair Value estimate is €314.04, implying the stock looks roughly 229.3% overvalued today. The Quality Score stands at 53/100 (solid quality), in the Industrials sector. Bull case: the Growth DCF group reads highest at a median of €456.41 per share, and 0 of the 26 models we run sit above the €1,034 price. Bear case: the Asset-Based group reads lowest at €72.14, and 26 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Rheinmetall AG generated revenue of €10.1B at a net margin of 7.2%. Revenue grew 7.7% year over year. It earns a return on equity of 21.8%. The balance sheet holds a net cash position of €368M. Fundamentals as of Aug 29, 2026

Our scenario range runs from €235.53 (bear case) to €392.55 (bull case); at €1,034, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The last reported earnings sit well below what analysts expect (earnings in transition, for example after write-downs or an earnings dip); whether the stock is cheap or expensive hinges on the expected recovery actually arriving. Read the fair value with that caveat. The share trades about 48% below its 52-week high, currently below its 200-day average. For context, the median of 10 Industrials peers we cover trades at −44% fair-value upside, at −70%, RHM screens richer than that median.

Fair Value models

This estimate rests on fiscal year 2025 figures, and about 8 months have passed since. In that time the company retained roughly €7.55 per share, which is 2.4 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
FCF DCF best evidence €355.29 €533.87 €801.62 80
Growth DCF €362.22 €522.25 €748.71 78
Owner Earnings €93.80 €134.72 €196.07 76
All 26 models by family
DCF Models
FCF DCF best evidence €355.29 €533.87 €801.62 80
Owner Earnings €93.80 €134.72 €196.07 76
5Y Revenue Exit €300.94 €454.14 €646.16 72
5Y EBITDA Exit €400.44 €637.84 €911.18 75
5Y P/E Exit €270.72 €398.34 €528.77 71
10Y Revenue Exit €309.56 €453.09 €639.18 67
10Y EBITDA Exit €380.73 €579.74 €839.03 68
10Y P/E Exit €298.46 €414.62 €550.66 64
Earnings-Based
Graham-Dodd €101.69 €295.95 €390.88 65
Lynch FV €61.45 €87.78 €114.12 61
PEG = 1.0 €61.45 €87.78 €114.12 57
EPV €283.32 €327.86 €366.83 74
Dividend Discount
Gordon GGM €72.80 €151.36 €240.11 66
DDM Multi-Stage €72.80 €116.94 €158.86 66
Multiples
P/E Multiple €235.53 €314.04 €392.55 63
P/S Multiple €190.67 €254.22 €317.78 58
P/B Multiple €190.67 €254.22 €317.78 55
EV/EBIT €482.33 €637.75 €793.17 66
EV/EBITDA €477.57 €631.41 €785.24 67
EV/Revenue €285.03 €400.30 €515.57 54
Asset-Based
NCAV (Graham) €53.83 €72.14 €107.67 54
Growth DCF
Growth DCF €362.22 €522.25 €748.71 78
Rev-Margin DCF €300.94 €456.41 €632.56 73
Economic Profit
Residual Income €104.80 €129.09 €268.04 71
ROIC Compounder €298.78 €365.83 €439.06 72
Growth Earnings
Growth-Adj P/E €190.38 €271.97 €353.56 67

Widest divergence: Growth DCF (€456.41) versus Asset-Based (€72.14). Highest evidence: FCF DCF (80).

Notify me when RHM reaches fair value

Put RHM on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.

Set up alert →

Free, no payment details. Unsubscribe anytime in one click.

Key figures & financial health

P/E ratio 46.5
P/S ratio 3.26 P/E × margin
EPS (TTM) €22.25 price ÷ EPS = P/E 46.5
Dividend yield 1.1% payout 51.7%
Net margin 7.0% FY2025
Return on equity 21.8% TTM
More key figures
Profitability
Return on assets (EBIT) 8.9% avg 5y
Operating margin 9.1% TTM
Growth
Revenue (TTM) €10.1B TTM
Revenue growth (YoY) +7.7% 3y avg +15.7%
EPS growth (YoY) +25.6%
Balance sheet & cash flow
Free cash flow €1.4B FY2025
Net cash €368M FY2025

Figures from reported company fundamentals · as of Aug 29, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 53/100

Of which business quality 56 · Market factors (momentum, volatility) 25

Profitability 44
Margins and returns on capital today
Quality Growth 42
Are margins and returns improving?
Cashflow 72
Earnings quality: real cash, not paper profit
Fin. Strength 71
Balance sheet, leverage, solvency risk
Investment 21
Disciplined investing over empire-building
Low Volatility 63
Calm price path (market factor)
Momentum 11
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 69
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

Rheinmetall AG provides mobility and security technologies in Germany, Rest of Europe, North, Middle, and South America, Asia and the Near East, and internationally. The company operates through the Vehicle Systems, Weapon and Ammunition, and Electronic Solutions segments.

Full company description

Rheinmetall AG provides mobility and security technologies in Germany, Rest of Europe, North, Middle, and South America, Asia and the Near East, and internationally. The company operates through the Vehicle Systems, Weapon and Ammunition, and Electronic Solutions segments. Its Vehicle Systems segment offers combat, logistics, support, and special vehicles, including armored tracked vehicles, CBRN protection systems, artillery, turret systems, and wheeled logistics and tactical vehicles. The Weapon and Ammunition segment provides firepower and protection solutions, such as weapons and ammunition, protection systems, propellants, and international projects and services. Its Electronic Solutions segment offers a chain of systems network, such as sensors, networking platforms, automated connected effectors for soldiers, cyberspace protection solutions, and training and simulation solutions. The company's products include air defense, soldier, and fire control systems; radar technology; and command, control and reconnaissance systems, as well as simulations for the army, air force, navy, and civil applications. It also engages in the aftermarket activities. The company was formerly known as Rheinmetall Berlin AG and changed its name to Rheinmetall AG in 1996. Rheinmetall AG was founded in 1889 and is headquartered in Düsseldorf, Germany.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Rheinmetall AG reported revenue of €9.9B in FY2025 versus €5.7B in FY2021, a compound +15.1%/yr. Reported net income was €696M in FY2025, compounding +24.4%/yr from FY2021.

Growth Quality 88/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2025)
€9.9B
Latest YoY
+1.9%
Avg. revenue growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+15.7%
Avg. revenue growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+11.1%
Avg. revenue growth/yr (23Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+3.4%
Value creation/yr (5Y) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year.
+18.4% (17.3 + 1.1)
Revenue +15.1%/yr
FY21 €5.7B
FY22 €6.4B
FY23 €7.2B
FY24 €9.8B
FY25 €9.9B
Net income +24.4%/yr
FY21 €291M
FY22 €540M
FY23 €586M
FY24 €717M
FY25 €696M
Character of growth · EPS growth decomposed (2014-2025) +18.6 % p.a.
Revenue per share +4.5 %

of which total revenue +6.3 % · buybacks/dilution −1.7 %

EBIT margin +14.1 %
Tax rate −0.4 %
Residual (interest, one-offs) −0.2 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

RHM screens 229% overvalued. Compare with General Electric Company →

Share or link this analysis
𝕏 Post WhatsApp LinkedIn Reddit
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Cite: Fair Value Calculator (2026). "Rheinmetall AG Fair Value". https://www.fairvalue-calculator.com/stock/RHM

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Aerospace & Defense · 229 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 53 · Above median
Fair Value upside −70% · Below median
Return on equity (TTM) 22% · Top 25%
Return on assets 6% · Above median
Net margin (TTM) 7% · Above median
Operating margin (TTM) 9% · Below median
Revenue growth 8% · Below median
Dividend yield (TTM) 1.1% · Above median
Debt / equity 0.18× · Higher than median

Valuation Multiples vs Aerospace & Defense median · lower = cheaper

P/E (TTM) 46.5× · Pricier than median
P/B 10.40× · Pricier than 75% of peers
P/S (TTM) 5.17× · Pricier than median
P/FCF 36.9× · Pricier than 75% of peers
EV/EBITDA 25.3× · Pricier than median
PEG 0.51× · Cheaper than 75% of peers

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 0
FUTURE39 · sector 50
PAST87 · sector 38
HEALTH91 · sector 93
DIVIDEND22 · sector 16

VALUE 0: the price sits above our fair-value range.

Insider activity: 45/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Weapons Defense

Similar stocks

10 more Aerospace & Defense stocks, each showing price versus our Fair Value estimate (as of Aug 29, 2026).

Stock Price Fair Value vs Fair Value
General Electric Company GE $335.71 $116.71 −65%
RTX Corporation RTX $212.08 $88.37 −58%
Airbus SE AIR €213.00 €117.01 −45%
Lockheed Martin Corporation LMT $565.89 $419.01 −26%
Howmet Aerospace Inc HWM $264.85 $50.43 −81%
General Dynamics Corporation GD $379.32 $274.32 −28%
Northrop Grumman Corporation NOC $545.57 $356.59 −35%
TransDigm Group TDG $1,235 $571.03 −54%
L3Harris Technologies, Inc LHX $262.82 $146.55 −44%
Thales S.A HO €243.70 €171.13 −30%

Compare Rheinmetall AG with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screener Filter by region, size and sector Compare tool Two stocks side by side Extrinsic Value Calculator (Options) Splits an option premium into intrinsic and extrinsic (time) value. Peter Lynch Fair Value Formula & Calculator Apply Peter Lynch's fair value formula in seconds: fair P/E ≈ earnings growth (+ dividend) - free, with formula and example.

Frequently asked questions

Is Rheinmetall AG (RHM) overvalued or undervalued?
As of Aug 29, 2026, our model estimates a fair value of €314.04 versus a price of €1,034, about −70% upside (overvalued).
What is the fair value of RHM?
Our model-based fair value for Rheinmetall AG is €314.04 (as of Aug 29, 2026), built from audited fundamentals. The current price: €1,034.
What is the quality score of RHM?
Rheinmetall AG has a Quality Score of 53/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Rheinmetall AG (RHM)?
Rheinmetall AG reported trailing-twelve-month revenue of about €10.1B (latest available figure, as of Aug 29, 2026).
What is the net profit margin of RHM?
The net profit margin of Rheinmetall AG is about 7.2%, meaning it keeps roughly 7.2% of revenue as net income. Based on the latest reported figures.
Does Rheinmetall AG pay a dividend?
Rheinmetall AG currently shows a dividend yield of about 1.11% relative to its recent price (as of Aug 29, 2026).
Free · no account needed

Watch Rheinmetall AG in the live analysis

One click puts Rheinmetall AG on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.