Royal Caribbean Cruises Ltd.

LSE:0I1W Stock Report

Market Cap: US$65.1b

Royal Caribbean Cruises Valuation

Is 0I1W undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • 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 0I1W when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0I1W ($242.42) is trading below our estimate of fair value ($411.81)

Significantly Below Fair Value: 0I1W is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0I1W?

Key metric: As 0I1W is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0I1W. This is calculated by dividing 0I1W's market cap by their current earnings.
What is 0I1W's PE Ratio?
PE Ratio25x
EarningsUS$2.60b
Market CapUS$65.09b

Price to Earnings Ratio vs Peers

How does 0I1W's PE Ratio compare to its peers?

The above table shows the PE ratio for 0I1W vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.1x
IHG InterContinental Hotels Group
31.3x11.0%UK£15.7b
WTB Whitbread
21.4x14.2%UK£5.1b
TRN Trainline
34.5x17.6%UK£1.9b
CPG Compass Group
41.1x17.1%UK£45.3b
0I1W Royal Caribbean Cruises
25x18.8%US$65.1b

Price-To-Earnings vs Peers: 0I1W is good value based on its Price-To-Earnings Ratio (25x) compared to the peer average (32.1x).

Price to Earnings Ratio vs Industry

How does 0I1W's PE Ratio compare vs other companies in the GB Hospitality Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
TAST Tasty
0.4x-75.9%US$2.39m
No more companies available in this PE range
0I1W 25.0xIndustry Avg. 19.6xNo. of Companies4PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0I1W is expensive based on its Price-To-Earnings Ratio (25x) compared to the UK Hospitality industry average (19.6x).

Price to Earnings Ratio vs Fair Ratio

What is 0I1W'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.

0I1W PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio25x
Fair PE Ratio39.6x

Price-To-Earnings vs Fair Ratio: 0I1W is good value based on its Price-To-Earnings Ratio (25x) compared to the estimated Fair Price-To-Earnings Ratio (39.6x).

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 0I1W forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$242.42
US$245.25
+1.2%
15.3%US$310.00US$155.00n/a22
Dec ’25US$244.06
US$234.98
-3.7%
13.3%US$290.00US$155.00n/a22
Nov ’25US$203.01
US$218.61
+7.7%
13.5%US$257.00US$155.00n/a19
Oct ’25US$174.74
US$183.69
+5.1%
10.5%US$213.00US$144.00n/a21
Sep ’25US$163.26
US$182.17
+11.6%
10.3%US$210.00US$144.00n/a21
Aug ’25US$146.40
US$182.43
+24.6%
10.9%US$210.00US$140.00n/a20
Jul ’25US$155.92
US$163.84
+5.1%
9.8%US$204.00US$135.00n/a20
Jun ’25US$145.46
US$161.54
+11.1%
8.0%US$184.00US$135.00n/a20
May ’25US$136.61
US$156.38
+14.5%
8.8%US$184.00US$135.00n/a20
Apr ’25US$138.46
US$146.98
+6.2%
8.8%US$174.00US$115.00n/a21
Mar ’25US$125.22
US$145.48
+16.2%
8.5%US$174.00US$115.00n/a20
Feb ’25US$125.41
US$131.84
+5.1%
17.1%US$170.00US$79.20n/a18
Jan ’25US$129.97
US$124.96
-3.9%
15.9%US$155.00US$79.20n/a19
Dec ’24US$110.17
US$115.84
+5.1%
14.0%US$140.00US$79.20US$244.0617
Nov ’24US$84.84
US$114.94
+35.5%
13.1%US$140.00US$86.00US$203.0118
Oct ’24US$91.44
US$117.39
+28.4%
12.4%US$139.00US$86.00US$174.7418
Sep ’24US$97.61
US$115.76
+18.6%
14.8%US$139.00US$83.00US$163.2617
Aug ’24US$107.15
US$109.56
+2.2%
17.7%US$139.00US$70.00US$146.4017
Jul ’24US$104.18
US$95.75
-8.1%
13.6%US$120.00US$70.00US$155.9218
Jun ’24US$83.35
US$88.11
+5.7%
15.2%US$104.00US$55.00US$145.4618
May ’24US$65.29
US$79.53
+21.8%
15.2%US$100.00US$55.00US$136.6117
Apr ’24US$65.38
US$78.71
+20.4%
14.7%US$100.00US$55.00US$138.4617
Mar ’24US$71.76
US$79.44
+10.7%
15.0%US$100.00US$55.00US$125.2216
Feb ’24US$64.48
US$69.88
+8.4%
24.0%US$117.00US$40.00US$125.4117
Jan ’24US$49.14
US$67.81
+38.0%
27.1%US$117.00US$40.00US$129.9716
Dec ’23US$61.19
US$70.50
+15.2%
28.9%US$117.00US$40.00US$110.1716

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/18 11:01
End of Day Share Price 2024/12/17 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Royal Caribbean Cruises Ltd. is covered by 59 analysts. 22 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Marius MagelieABG Sundal Collier
Kenneth SivertsenArctic Securities ASA
John StaszakArgus Research Company