Royal Caribbean Cruises Ltd.

LSE:0I1W Stock Report

Market Cap: US$62.2b

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 ($231.09) is trading below our estimate of fair value ($640.72)

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 Ratio23.9x
EarningsUS$2.60b
Market CapUS$62.24b

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 Average29x
IHG InterContinental Hotels Group
29.7x10.7%UK£15.0b
WTB Whitbread
21.4x17.8%UK£5.1b
TRN Trainline
33.2x14.3%UK£1.8b
CPG Compass Group
31.7x12.1%UK£44.3b
0I1W Royal Caribbean Cruises
23.9x18.9%US$62.2b

Price-To-Earnings vs Peers: 0I1W is good value based on its Price-To-Earnings Ratio (23.9x) compared to the peer average (29x).

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$2.74m
No more companies available in this PE range
0I1W 23.9xIndustry Avg. 20.7xNo. of Companies6PE01224364860+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0I1W is expensive based on its Price-To-Earnings Ratio (23.9x) compared to the UK Hospitality industry average (20.7x).

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 Ratio23.9x
Fair PE Ratio39.4x

Price-To-Earnings vs Fair Ratio: 0I1W is good value based on its Price-To-Earnings Ratio (23.9x) compared to the estimated Fair Price-To-Earnings Ratio (39.4x).

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$231.09
US$229.93
-0.5%
12.4%US$270.00US$155.00n/a20
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$79.20n/a17
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
Nov ’23US$52.87
US$67.07
+26.9%
38.4%US$135.00US$35.00US$84.8415

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

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