RCL Valuation

Royal Caribbean Cruises Ltd

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344.670

+19.64(6.043%)1D

Overview
Forecast
Valuation
Earnings

RCL Relative Valuation

RCL's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, RCL is overvalued; if below, it's undervalued.

Historical Valuation

Royal Caribbean Cruises Ltd (RCL) is now in the Fair zone, suggesting that its current forward PS ratio of 4.68 is considered Fairly compared with the five-year average of 12.49. The fair price of Royal Caribbean Cruises Ltd (RCL) is between 107.56 to 410.12 according to relative valuation methord.

Relative Value

Fair Zone

107.56-410.12

Current Price：344.67

Fair

19.42

Trailing

Forward

14.99

EV/EBITDA

Royal Caribbean Cruises Ltd. (RCL) has a current EV/EBITDA of 14.99. The 5-year average EV/EBITDA is -34.12. The thresholds are as follows: Strongly Undervalued below -346.02, Undervalued between -346.02 and -190.07, Fairly Valued between 121.84 and -190.07, Overvalued between 121.84 and 277.79, and Strongly Overvalued above 277.79. The current Forward EV/EBITDA of 14.99 falls within the Historic Trend Line -Fairly Valued range.

20.42

EV/EBIT

Royal Caribbean Cruises Ltd. (RCL) has a current EV/EBIT of 20.42. The 5-year average EV/EBIT is -91.35. The thresholds are as follows: Strongly Undervalued below -938.63, Undervalued between -938.63 and -514.99, Fairly Valued between 332.29 and -514.99, Overvalued between 332.29 and 755.93, and Strongly Overvalued above 755.93. The current Forward EV/EBIT of 20.42 falls within the Historic Trend Line -Fairly Valued range.

4.68

Royal Caribbean Cruises Ltd. (RCL) has a current PS of 4.68. The 5-year average PS is 3.22. The thresholds are as follows: Strongly Undervalued below -1.92, Undervalued between -1.92 and 0.65, Fairly Valued between 5.78 and 0.65, Overvalued between 5.78 and 8.35, and Strongly Overvalued above 8.35. The current Forward PS of 4.68 falls within the Historic Trend Line -Fairly Valued range.

12.47

P/OCF

Royal Caribbean Cruises Ltd. (RCL) has a current P/OCF of 12.47. The 5-year average P/OCF is 7.10. The thresholds are as follows: Strongly Undervalued below -42.54, Undervalued between -42.54 and -17.72, Fairly Valued between 31.92 and -17.72, Overvalued between 31.92 and 56.74, and Strongly Overvalued above 56.74. The current Forward P/OCF of 12.47 falls within the Historic Trend Line -Fairly Valued range.

32.29

P/FCF

Royal Caribbean Cruises Ltd. (RCL) has a current P/FCF of 32.29. The 5-year average P/FCF is -0.16. The thresholds are as follows: Strongly Undervalued below -78.06, Undervalued between -78.06 and -39.11, Fairly Valued between 38.80 and -39.11, Overvalued between 38.80 and 77.75, and Strongly Overvalued above 77.75. The current Forward P/FCF of 32.29 falls within the Historic Trend Line -Fairly Valued range.

Royal Caribbean Cruises Ltd (RCL) has a current Price-to-Book (P/B) ratio of 9.63. Compared to its 3-year average P/B ratio of 6.98 , the current P/B ratio is approximately 37.91% higher. Relative to its 5-year average P/B ratio of 5.30, the current P/B ratio is about 81.76% higher. Royal Caribbean Cruises Ltd (RCL) has a Forward Free Cash Flow (FCF) yield of approximately 4.06%. Compared to its 3-year average FCF yield of -2.10%, the current FCF yield is approximately -293.01% lower. Relative to its 5-year average FCF yield of -12.16% , the current FCF yield is about -133.40% lower.

9.63

P/B

Median3y

6.98

Median5y

5.30

4.06

FCF Yield

Median3y

-2.10

Median5y

-12.16

Competitors Valuation Multiple

The average P/S ratio for RCL's competitors is 3.86, providing a benchmark for relative valuation. Royal Caribbean Cruises Ltd Corp (RCL) exhibits a P/S ratio of 4.68, which is 21.18% above the industry average. Given its robust revenue growth of 10.41%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

RCL.N

Royal Caribbean Cruises Ltd

Marriott International Inc

Hilton Worldwide Holdings Inc

Performance Decomposition

Market capitalization of RCL increased by 110.35% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 14.04 to 24.13.

The secondary factor is the Margin Expansion, contributed 28.11%to the performance.

Overall, the performance of RCL in the past 1 year is driven by P/E Change. Which is more unsustainable.

10.41%

4.11B → 4.54B

Revenue Growth

28.11%

20.88 → 26.75

Margin Expansion

71.83%

14.04 → 24.13

P/E Change

110.35%