Carnival Corporation & Valuation

Is CCL 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 CCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CCL (£17.89) is trading below our estimate of fair value (£47.26)

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

Key Valuation Metric

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

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

The above table shows the Price to Earnings ratio for CCL. This is calculated by dividing CCL's market cap by their current earnings.
What is CCL's PE Ratio?
PE Ratio	21x
Earnings	US$1.57b
Market Cap	US$32.50b

CCL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.5x
Enterprise Value/EBITDA	10.4x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for CCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	Forward PE	Estimated Growth	Market Cap
Peer Average	26.6x
IHG InterContinental Hotels Group	30x	10.7%	UK£15.3b
WTB Whitbread	21.3x	17.8%	UK£5.1b
TRN Trainline	32.9x	15.1%	UK£1.8b
PPH PPHE Hotel Group	22.3x	31.6%	UK£488.9m
CCL Carnival Corporation &	21x	19.8%	UK£32.5b

Price-To-Earnings vs Peers: CCL is good value based on its Price-To-Earnings Ratio (21x) compared to the peer average (26.6x).

Price to Earnings Ratio vs Industry

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

1 Company	Price / Earnings	Estimated Growth	Market Cap
TAST Tasty	0.4x	-75.9%	US$2.72m

No more companies available in this PE range

1 Company		Estimated Growth	Market Cap

No more companies

Price-To-Earnings vs Industry: CCL is expensive based on its Price-To-Earnings Ratio (21x) compared to the UK Hospitality industry average (20.7x).

Price to Earnings Ratio vs Fair Ratio

What is CCL'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.

CCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	21x
Fair PE Ratio	36.2x

Price-To-Earnings vs Fair Ratio: CCL is good value based on its Price-To-Earnings Ratio (21x) compared to the estimated Fair Price-To-Earnings Ratio (36.2x).

Analyst Price Targets

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

Analyst Forecast: Insufficient data to show price forecast.