Royal Caribbean Cruises Ltd.

NYSE:RCL Stock Report

Market Cap: US$63.1b

Royal Caribbean Cruises Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • 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 ($235.87) is trading below our estimate of fair value ($631.3)

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?

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

The above table shows the Price to Earnings ratio for RCL. This is calculated by dividing RCL's market cap by their current earnings.
What is RCL's PE Ratio?
PE Ratio24.4x
EarningsUS$2.60b
Market CapUS$63.10b

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 Average29.9x
CCL Carnival Corporation &
20.8x19.8%US$32.2b
HLT Hilton Worldwide Holdings
51.8x17.6%US$60.9b
TCOM Trip.com Group
18.9x8.7%US$40.9b
MAR Marriott International
28.1x8.4%US$77.6b
RCL Royal Caribbean Cruises
24.4x18.9%US$63.1b

Price-To-Earnings vs Peers: RCL is good value based on its Price-To-Earnings Ratio (24.4x) compared to the peer average (29.9x).

Price to Earnings Ratio vs Industry

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

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GDHG Golden Heaven Group Holdings
3.5xn/aUS$6.01m
THRS.F Agility Real Estate
1.7xn/aUS$2.05m
No more companies available in this PE range
RCL 24.4xIndustry Avg. 24.4xNo. of Companies15PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: RCL is good value based on its Price-To-Earnings Ratio (24.4x) compared to the US Hospitality industry average (24.4x).

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 Ratio24.4x
Fair PE Ratio33x

Price-To-Earnings vs Fair Ratio: RCL is good value based on its Price-To-Earnings Ratio (24.4x) compared to the estimated Fair Price-To-Earnings Ratio (33x).

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$235.87
US$229.93
-2.5%
12.4%US$270.00US$155.00n/a20
Nov ’25US$202.06
US$218.61
+8.2%
13.5%US$257.00US$155.00n/a19
Oct ’25US$173.23
US$183.69
+6.0%
10.5%US$213.00US$144.00n/a21
Sep ’25US$164.62
US$182.17
+10.7%
10.3%US$210.00US$144.00n/a21
Aug ’25US$148.09
US$182.43
+23.2%
10.9%US$210.00US$140.00n/a20
Jul ’25US$156.47
US$163.84
+4.7%
9.8%US$204.00US$135.00n/a20
Jun ’25US$147.68
US$161.54
+9.4%
8.0%US$184.00US$135.00n/a20
May ’25US$137.52
US$156.38
+13.7%
8.8%US$184.00US$135.00n/a20
Apr ’25US$140.56
US$146.98
+4.6%
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$86.00US$202.0618
Oct ’24US$92.14
US$117.39
+27.4%
12.4%US$139.00US$86.00US$173.2318
Sep ’24US$97.70
US$115.76
+18.5%
14.8%US$139.00US$83.00US$164.6217
Aug ’24US$107.44
US$109.56
+2.0%
17.7%US$139.00US$70.00US$148.0917
Jul ’24US$103.74
US$95.75
-7.7%
13.6%US$120.00US$70.00US$156.4718
Jun ’24US$83.23
US$88.11
+5.9%
15.2%US$104.00US$55.00US$147.6818
May ’24US$66.98
US$79.53
+18.7%
15.2%US$100.00US$55.00US$137.5217
Apr ’24US$65.30
US$78.71
+20.5%
14.7%US$100.00US$55.00US$140.5617
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

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

Discover undervalued companies

7D

1Y

7D

1Y

7D

1Y