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Why Did Rheinmetall (XTRA:RHM) Stock Climb As Fresh Attention Builds?

Simply Wall St · 2d ago

Rheinmetall (XTRA:RHM) drew fresh attention after European leaders reiterated support for Ukraine and the group signed a new memorandum of understanding (MoU) with Nel ASA on decentralised renewable fuel production for defence and critical infrastructure.

Rheinmetall’s recent MoU with Nel ASA and the renewed political backing for Ukraine have arrived during a sharp short term rebound, with a 1 day share price return of 6.3% and a 7 day share price return of 16.1%. However, the stock is still down 32% year to date on a share price basis and shows a 1 year total shareholder return decline of 33.7%. This is set against a very large 3 year total shareholder return and an even larger 5 year total shareholder return that signal strong longer term momentum despite the recent pullback.

Scan defence and energy security opportunities moving with Rheinmetall's story by reviewing the hand picked 16 nuclear energy infrastructure stocks alongside this latest MoU and geopolitical backdrop.

The rebound in Rheinmetall after a steep year to date decline raises a practical question for you as a shareholder or prospect. Is this the moment to step in, or does patience for a cheaper entry make more sense as valuation comes into focus next?

Most Popular Narrative: 81% Undervalued

Rheinmetall last closed at €1,090.20, while the leading narrative fair value sits at €5,865, so the current rebound still prices the stock far below that framework and keeps the debate focused on how much of the long run story is already in the chart.

Rheinmetall remains a compelling long-term European defense growth story. The fundamental outlook for 2027 to 2029 is strong, but expectations are already elevated.

See why 20 investors see Rheinmetall as 81% undervalued.

Result: Fair Value of €5,865 (UNDERVALUED)

However, the bullish Rheinmetall narrative still hinges on clean execution and sustained defence budgets; persistent project delays or budget shifts could quickly challenge it.

Find out about the key risks to this Rheinmetall narrative.

Another View on Rheinmetall’s Valuation

On earnings multiples, Rheinmetall looks rich at a 42x P/E compared with 31x for the wider European aerospace and defense group, yet still below a 45.7x fair ratio and a 65.3x peer average. That mix hints at both valuation risk and possible catch up. Which side do you think wins out first?

See what the numbers say about this price — find out in our valuation breakdown.

XTRA:RHM P/E Ratio as at Oct 2026
XTRA:RHM P/E Ratio as at Oct 2026

Next Steps

Sentiment on Rheinmetall is split, and the numbers reflect that mix of concern and optimism, so act quickly and weigh both angles for yourself. To see how those cross currents show up in the key metrics, walk through the 3 key rewards and 1 important warning sign

Looking for more investment ideas beyond Rheinmetall?

If you want a wider watchlist around Rheinmetall, do not stop here. Spread your attention across other opportunities and let the data do more of the heavy lifting.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.