For a mature company listed in the stock market for decades already, Rolls Royce (LSE: RR) has a very unusual share price scheme. Rolls-Royce shares rose 51 % To date this year. They are now 692 % higher More than five years.

In recent years, it seemed as if the price of Rolls-Royce has risen and higher. There were bumps along the way, but the momentum was strong.

So, is it logical for me to buy some of my wallet?

Looking at the future basics, not the past momentum

First of all, I must be clear that I am not investing based on the momentum of stocks. I see it like passing the parcel: Once music stops, the mood can change very quickly.

So, my choice about buying Rolls-Royce shares for my wallet depends on how business prospects appear, not what the stock price does.

A field for continuous growth

In short, I think Rolls-Royce looks good in the future for the short-term future.

Civil aviation, defense and energy generation benefit from increasing demand for customers. Rolls-Royce extends to each of them, thanks to the highest demand, revenue growth has seen. I expect it to remain so in the coming years of defense and power generation.

Civil airline sales and their service can also continue to see growth, although this in practice depends on the request of passengers. It tends to fall significantly from time to time, for example, due to the recession or event that reduces people’s confidence in flying.

It may be difficult to justify the evaluation

Rolls has set itself ambitious goals in the medium term and until now it has been well delivered, some of them hit before the specified date and set higher goals.

Therefore, the investment status, as is the case in business that works strongly in the sectors that are scheduled to continue to grow. However, although I love it, Rolls-Royce shares are now apparently trading for me as if it is an aggressive evaluation.

The price ratio to the profits is 30 years. This is much higher than I will be comfortable paying it in exchange for a mature company in a mature industry, which I think is a fair description of the list.

This is the reason for not investing

One of the potential justifications for this evaluation is the possibility of profit growth. Looking at the strong demand for customers and aggressive plans, this is likely that it looks. If this happens, Rolls-Royce shares may push up to the top even from here.

But what if it did not happen?

This can be for internal reasons: Rolls is a complex company with available project times that have not long been consistent when it comes to financial performance.

External factors may also throw a key in business. The restrictions on travel and epidemic Rolls Royce brought to her knees and stocks fell to sell penalties. The unexpected sudden demand for blue demand may come out at any time.

The evaluation is very high for my comfort, so I will not invest.