Royal Caribbean Cruises Stock Market Value
| RCL Stock | USD 241.62 2.88 1.18% |
| Symbol | Royal |
Royal Caribbean Cruises Price To Book Ratio
Is Hotels, Resorts & Cruise Lines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Royal Caribbean. If investors know Royal will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Royal Caribbean listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.154 | Dividend Share 0.4 | Earnings Share 9.98 | Revenue Per Share 62.168 | Quarterly Revenue Growth 0.175 |
The market value of Royal Caribbean Cruises is measured differently than its book value, which is the value of Royal that is recorded on the company's balance sheet. Investors also form their own opinion of Royal Caribbean's value that differs from its market value or its book value, called intrinsic value, which is Royal Caribbean's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Royal Caribbean's market value can be influenced by many factors that don't directly affect Royal Caribbean's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Royal Caribbean's value and its price as these two are different measures arrived at by different means. Investors typically determine if Royal Caribbean is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Royal Caribbean's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Royal Caribbean 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Royal Caribbean's stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Royal Caribbean.
| 10/29/2024 |
| 11/28/2024 |
If you would invest 0.00 in Royal Caribbean on October 29, 2024 and sell it all today you would earn a total of 0.00 from holding Royal Caribbean Cruises or generate 0.0% return on investment in Royal Caribbean over 30 days. Royal Caribbean is related to or competes with Carnival, Airbnb, Expedia, Booking Holdings, Norwegian Cruise, and TripAdvisor. Royal Caribbean Cruises Ltd. operates as a cruise company worldwide More
Royal Caribbean Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Royal Caribbean's stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Royal Caribbean Cruises upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 1.37 | |||
| Information Ratio | 0.262 | |||
| Maximum Drawdown | 10.23 | |||
| Value At Risk | (2.33) | |||
| Potential Upside | 4.24 |
Royal Caribbean Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Royal Caribbean's investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Royal Caribbean's standard deviation. In reality, there are many statistical measures that can use Royal Caribbean historical prices to predict the future Royal Caribbean's volatility.| Risk Adjusted Performance | 0.2569 | |||
| Jensen Alpha | 0.4589 | |||
| Total Risk Alpha | 0.3267 | |||
| Sortino Ratio | 0.3762 | |||
| Treynor Ratio | 0.4297 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Royal Caribbean's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Royal Caribbean Cruises Backtested Returns
Royal Caribbean appears to be very steady, given 3 months investment horizon. Royal Caribbean Cruises maintains Sharpe Ratio (i.e., Efficiency) of 0.33, which implies the firm had a 0.33% return per unit of risk over the last 3 months. By analyzing Royal Caribbean's technical indicators, you can evaluate if the expected return of 0.63% is justified by implied risk. Please evaluate Royal Caribbean's Coefficient Of Variation of 304.79, risk adjusted performance of 0.2569, and Semi Deviation of 0.925 to confirm if our risk estimates are consistent with your expectations. On a scale of 0 to 100, Royal Caribbean holds a performance score of 25. The company holds a Beta of 1.48, which implies a somewhat significant risk relative to the market. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Royal Caribbean will likely underperform. Please check Royal Caribbean's expected short fall, as well as the relationship between the rate of daily change and relative strength index , to make a quick decision on whether Royal Caribbean's historical price patterns will revert.
Auto-correlation | 0.91 |
Excellent predictability
Royal Caribbean Cruises has excellent predictability. Overlapping area represents the amount of predictability between Royal Caribbean time series from 29th of October 2024 to 13th of November 2024 and 13th of November 2024 to 28th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Royal Caribbean Cruises price movement. The serial correlation of 0.91 indicates that approximately 91.0% of current Royal Caribbean price fluctuation can be explain by its past prices.
| Correlation Coefficient | 0.91 | |
| Spearman Rank Test | 0.89 | |
| Residual Average | 0.0 | |
| Price Variance | 17.96 |
Royal Caribbean Cruises lagged returns against current returns
Autocorrelation, which is Royal Caribbean stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Royal Caribbean's stock expected returns. We can calculate the autocorrelation of Royal Caribbean returns to help us make a trade decision. For example, suppose you find that Royal Caribbean has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Royal Caribbean regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Royal Caribbean stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Royal Caribbean stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Royal Caribbean stock over time.
Current vs Lagged Prices |
| Timeline |
Royal Caribbean Lagged Returns
When evaluating Royal Caribbean's market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Royal Caribbean stock have on its future price. Royal Caribbean autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Royal Caribbean autocorrelation shows the relationship between Royal Caribbean stock current value and its past values and can show if there is a momentum factor associated with investing in Royal Caribbean Cruises.
Regressed Prices |
| Timeline |
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Royal Caribbean technical stock analysis exercises models and trading practices based on price and volume transformations, such as the moving averages, relative strength index, regressions, price and return correlations, business cycles, stock market cycles, or different charting patterns.