Royal Caribbean Cruises Ltd.

DB:RC8 Stock Report

Market Cap: €60.5b

Royal Caribbean Cruises Valuation

Is RC8 undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of RC8 when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RC8 (€227.15) is trading below our estimate of fair value (€636.58)

Significantly Below Fair Value: RC8 is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RC8?

Key metric: As RC8 is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for RC8. This is calculated by dividing RC8's market cap by their current earnings.
What is RC8's PE Ratio?
PE Ratio24.5x
EarningsUS$2.60b
Market CapUS$63.42b

Price to Earnings Ratio vs Peers

How does RC8's PE Ratio compare to its peers?

The above table shows the PE ratio for RC8 vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.7x
TUI1 TUI
7x17.3%€3.8b
IFA LS Invest
6.5xn/a€293.6m
CCL Carnival Corporation &
21x19.8%US$32.3b
HLT Hilton Worldwide Holdings
52.2x17.6%US$61.0b
RC8 Royal Caribbean Cruises
24.4x18.9%€63.1b

Price-To-Earnings vs Peers: RC8 is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the peer average (21.7x).

Price to Earnings Ratio vs Industry

How does RC8's PE Ratio compare vs other companies in the European Hospitality Industry?

10 CompaniesPrice / EarningsEstimated GrowthMarket Cap
RC8 24.5xIndustry Avg. 17.1xNo. of Companies18PE01224364860+
10 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RC8 is expensive based on its Price-To-Earnings Ratio (24.5x) compared to the European Hospitality industry average (17.1x).

Price to Earnings Ratio vs Fair Ratio

What is RC8's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RC8 PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.5x
Fair PE Ratio42.7x

Price-To-Earnings vs Fair Ratio: RC8 is good value based on its Price-To-Earnings Ratio (24.5x) compared to the estimated Fair Price-To-Earnings Ratio (42.7x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst RC8 forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€227.15
€221.21
-2.6%
12.6%€258.53€147.87n/a21
Nov ’25€190.70
€200.99
+5.4%
13.5%€236.29€142.51n/a19
Oct ’25€158.28
€164.35
+3.8%
10.5%€190.57€128.84n/a21
Sep ’25€151.16
€162.77
+7.7%
10.3%€187.64€128.66n/a21
Aug ’25€134.98
€169.05
+25.2%
10.9%€194.61€129.74n/a20
Jul ’25€149.16
€153.40
+2.8%
9.8%€191.01€126.40n/a20
Jun ’25€133.70
€148.56
+11.1%
8.0%€169.22€124.16n/a20
May ’25€132.54
€146.27
+10.4%
8.8%€172.10€126.27n/a20
Apr ’25€127.20
€135.01
+6.1%
8.8%€159.82€105.63n/a21
Mar ’25€116.30
€134.25
+15.4%
8.5%€160.57€106.12n/a20
Feb ’25€115.00
€121.30
+5.5%
17.1%€156.40€72.86n/a18
Jan ’25€116.30
€112.52
-3.2%
15.9%€139.58€71.32n/a19
Dec ’24€101.00
€106.39
+5.3%
14.0%€128.59€72.75n/a17
Nov ’24€79.68
€108.61
+36.3%
13.1%€132.29€81.26€190.7018
Oct ’24€89.00
€110.31
+23.9%
12.4%€130.62€80.81€158.2818
Sep ’24€91.48
€106.11
+16.0%
14.8%€127.41€76.08€151.1617
Aug ’24€96.60
€99.75
+3.3%
17.7%€126.56€63.74€134.9817
Jul ’24€95.32
€87.75
-7.9%
13.6%€109.97€64.15€149.1618
Jun ’24€76.76
€82.13
+7.0%
15.2%€96.94€51.27€133.7018
May ’24€55.62
€72.17
+29.8%
15.2%€90.75€49.91€132.5417
Apr ’24€60.24
€72.61
+20.5%
14.7%€92.25€50.74€127.2017
Mar ’24€67.30
€74.94
+11.4%
15.0%€94.34€51.89€116.3016
Feb ’24€60.79
€64.28
+5.7%
24.0%€107.63€36.80€115.0017
Jan ’24€46.20
€63.78
+38.1%
27.1%€110.05€37.62€116.3016
Dec ’23€58.21
€68.82
+18.2%
28.9%€114.22€39.05€101.0016
Nov ’23€54.00
€68.00
+25.9%
38.4%€136.88€35.49€79.6815

Analyst Forecast: Target price is lower than the current share price.

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