Royal Caribbean Cruises Ltd.

NYSE:RCL Stock Report

Market Cap: US$35.9b

Royal Caribbean Cruises Valuation

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

Below Fair Value: RCL ($139.72) is trading below our estimate of fair value ($416.75)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

RCL 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/Revenue4.1x
Enterprise Value/EBITDA13.3x
PEG Ratio1.1x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for RCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average49.1x
H Hyatt Hotels
74x20.6%US$16.3b
NCLH Norwegian Cruise Line Holdings
54.7x46.5%US$9.1b
TCOM Trip.com Group
20.4x12.2%US$28.0b
HLT Hilton Worldwide Holdings
47.4x16.1%US$54.0b
RCL Royal Caribbean Cruises
21.1x18.5%US$35.9b

Price-To-Earnings vs Peers: RCL is good value based on its Price-To-Earnings Ratio (21.1x) compared to the peer average (49.1x).


Price to Earnings Ratio vs Industry

How does RCL's PE Ratio compare vs other companies in the US Hospitality Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: RCL is expensive based on its Price-To-Earnings Ratio (21.1x) compared to the US Hospitality industry average (20.4x).


Price to Earnings Ratio vs Fair Ratio

What is RCL'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.

RCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio21.1x
Fair PE Ratio32.7x

Price-To-Earnings vs Fair Ratio: RCL is good value based on its Price-To-Earnings Ratio (21.1x) compared to the estimated Fair Price-To-Earnings Ratio (32.7x).


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 RCL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$139.72
US$146.98
+5.2%
8.8%US$174.00US$115.00n/a21
Mar ’25US$124.26
US$145.48
+17.1%
8.5%US$174.00US$115.00n/a20
Feb ’25US$126.96
US$131.84
+3.8%
17.1%US$170.00US$79.20n/a18
Jan ’25US$129.49
US$124.96
-3.5%
15.9%US$155.00US$79.20n/a19
Dec ’24US$110.73
US$115.84
+4.6%
14.0%US$140.00US$79.20n/a17
Nov ’24US$85.27
US$114.94
+34.8%
13.1%US$140.00US$86.00n/a18
Oct ’24US$92.14
US$117.39
+27.4%
12.4%US$139.00US$86.00n/a18
Sep ’24US$97.70
US$115.76
+18.5%
14.8%US$139.00US$83.00n/a17
Aug ’24US$107.44
US$109.56
+2.0%
17.7%US$139.00US$70.00n/a17
Jul ’24US$103.74
US$95.75
-7.7%
13.6%US$120.00US$70.00n/a18
Jun ’24US$83.23
US$88.11
+5.9%
15.2%US$104.00US$55.00n/a18
May ’24US$66.98
US$79.53
+18.7%
15.2%US$100.00US$55.00n/a17
Apr ’24US$65.30
US$78.71
+20.5%
14.7%US$100.00US$55.00n/a17
Mar ’24US$71.50
US$79.44
+11.1%
15.0%US$100.00US$55.00US$124.2616
Feb ’24US$67.27
US$69.88
+3.9%
24.0%US$117.00US$40.00US$126.9617
Jan ’24US$49.43
US$67.81
+37.2%
27.1%US$117.00US$40.00US$129.4916
Dec ’23US$60.91
US$70.50
+15.7%
28.9%US$117.00US$40.00US$110.7316
Nov ’23US$51.98
US$67.07
+29.0%
38.4%US$135.00US$35.00US$85.2715
Oct ’23US$37.90
US$66.79
+76.2%
39.3%US$135.00US$35.00US$92.1414
Sep ’23US$40.92
US$65.57
+60.2%
40.3%US$135.00US$35.00US$97.7014
Aug ’23US$35.79
US$69.14
+93.2%
37.6%US$135.00US$35.00US$107.4414
Jul ’23US$35.29
US$78.63
+122.8%
28.6%US$136.00US$50.00US$103.7416
Jun ’23US$55.57
US$83.57
+50.4%
25.2%US$136.00US$57.00US$83.2314
May ’23US$77.73
US$90.46
+16.4%
21.3%US$136.00US$61.00US$66.9813
Apr ’23US$83.66
US$90.46
+8.1%
21.3%US$136.00US$61.00US$65.3013
Mar ’23US$73.67
US$93.75
+27.3%
23.5%US$136.00US$61.00US$71.5012

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


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