Royal Caribbean EBITDA vs. Current Valuation

RCL Stock  USD 245.66  1.48  0.60%   
Considering Royal Caribbean's profitability and operating efficiency indicators, Royal Caribbean Cruises is performing exceptionally good at this time. It has a great probability to showcase excellent profitability results in January. Profitability indicators assess Royal Caribbean's ability to earn profits and add value for shareholders.
 
EBITDA  
First Reported
2010-12-31
Previous Quarter
4.6 B
Current Value
4.8 B
Quarterly Volatility
2.3 B
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Royal Caribbean's Days Sales Outstanding is quite stable compared to the past year. Sales General And Administrative To Revenue is expected to rise to 0.16 this year, although the value of EV To Sales will most likely fall to 3.09. At this time, Royal Caribbean's Income Quality is quite stable compared to the past year. Net Income Per E B T is expected to rise to 1.05 this year, although the value of Total Other Income Expense Net is projected to rise to (1.1 B).
For Royal Caribbean profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Royal Caribbean to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Royal Caribbean Cruises utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Royal Caribbean's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Royal Caribbean Cruises over time as well as its relative position and ranking within its peers.
  

Royal Caribbean's Revenue Breakdown by Earning Segment

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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 Cruises Current Valuation vs. EBITDA Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Royal Caribbean's current stock value. Our valuation model uses many indicators to compare Royal Caribbean value to that of its competitors to determine the firm's financial worth.
Royal Caribbean Cruises is rated third in ebitda category among its peers. It also is rated third in current valuation category among its peers reporting about  19.20  of Current Valuation per EBITDA. At this time, Royal Caribbean's EBITDA is quite stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value Royal Caribbean by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

Royal Current Valuation vs. EBITDA

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.

Royal Caribbean

EBITDA

 = 

Revenue

-

Basic Expenses

 = 
4.56 B
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Royal Caribbean

Enterprise Value

 = 

Market Cap + Debt

-

Cash

 = 
87.59 B
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Royal Current Valuation vs Competition

Royal Caribbean Cruises is rated third in current valuation category among its peers. After adjusting for long-term liabilities, total market size of Consumer Discretionary industry is at this time estimated at about 450.69 Billion. Royal Caribbean retains roughly 87.59 Billion in current valuation claiming about 19% of stocks in Consumer Discretionary industry.

Royal Caribbean Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Royal Caribbean, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Royal Caribbean will eventually generate negative long term returns. The profitability progress is the general direction of Royal Caribbean's change in net profit over the period of time. It can combine multiple indicators of Royal Caribbean, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-674 M-640.3 M
Operating Income2.9 BB
Income Before Tax1.7 B1.8 B
Total Other Income Expense Net-1.2 B-1.1 B
Net Income1.7 B1.8 B
Income Tax ExpenseM5.7 M
Net Loss-1.9 B-1.8 B
Net Income From Continuing Ops924.9 M971.1 M
Non Operating Income Net Other-25 M-23.8 M
Interest Income46 M43.7 M
Net Interest Income-1.4 B-1.4 B
Change To Netincome174.4 M124.1 M
Net Income Per Share 6.63  6.96 
Income Quality 2.64  3.83 
Net Income Per E B T 1.00  1.05 

Royal Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Royal Caribbean. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Royal Caribbean position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Royal Caribbean's important profitability drivers and their relationship over time.

Use Royal Caribbean in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Royal Caribbean position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Royal Caribbean will appreciate offsetting losses from the drop in the long position's value.

Royal Caribbean Pair Trading

Royal Caribbean Cruises Pair Trading Analysis

The ability to find closely correlated positions to Royal Caribbean could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Royal Caribbean when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Royal Caribbean - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Royal Caribbean Cruises to buy it.
The correlation of Royal Caribbean is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Royal Caribbean moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Royal Caribbean Cruises moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Royal Caribbean can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Royal Caribbean position

In addition to having Royal Caribbean in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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High Yield ETFs
High Yield ETFs Theme
ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The High Yield ETFs theme has 106 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize High Yield ETFs Theme or any other thematic opportunities.
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When determining whether Royal Caribbean Cruises is a strong investment it is important to analyze Royal Caribbean's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Royal Caribbean's future performance. For an informed investment choice regarding Royal Stock, refer to the following important reports:
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You can also try the Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
To fully project Royal Caribbean's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Royal Caribbean Cruises at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Royal Caribbean's income statement, its balance sheet, and the statement of cash flows.
Potential Royal Caribbean investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Royal Caribbean investors may work on each financial statement separately, they are all related. The changes in Royal Caribbean's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Royal Caribbean's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.