Royal Caribbean Valuation
| RCL Stock | USD 244.06 2.44 1.01% |
At this time, the company appears to be overvalued. Royal Caribbean Cruises holds a recent Real Value of $193.05 per share. The prevailing price of the company is $244.06. Our model determines the value of Royal Caribbean Cruises from analyzing the company fundamentals such as Return On Equity of 0.44, shares outstanding of 268.88 M, and Operating Margin of 0.33 % as well as examining its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Royal Caribbean's valuation include:
Price Book 9.2215 | Enterprise Value 86.1 B | Enterprise Value Ebitda 14.7312 | Price Sales 4.0873 | Forward PE 17.094 |
Overvalued
Today
Please note that Royal Caribbean's price fluctuation is very steady at this time. Calculation of the real value of Royal Caribbean Cruises is based on 3 months time horizon. Increasing Royal Caribbean's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Royal stock is determined by what a typical buyer is willing to pay for full or partial control of Royal Caribbean Cruises. Since Royal Caribbean is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Royal Stock. However, Royal Caribbean's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 244.06 | Real 193.05 | Target 123.07 | Hype 246.85 | Naive 243.35 |
The intrinsic value of Royal Caribbean's stock can be calculated using various methods such as discounted cash flow or dividend analysis. That value may differ from its market price, which is determined by factors such as investor sentiment, market trends, headlines, and other external factors that may influence Royal Caribbean's stock price.
Estimating the potential upside or downside of Royal Caribbean Cruises helps investors to forecast how Royal stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Royal Caribbean more accurately as focusing exclusively on Royal Caribbean's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Royal Caribbean's intrinsic value based on its ongoing forecasts of Royal Caribbean's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Royal Caribbean's closest peers.
Royal Caribbean Cash |
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Royal Valuation Trend
Knowing Royal Caribbean's actual value is paramount for traders when making sound investment determinations. Using both Royal Caribbean's enterprise value as well as its market capitalization is the best way to estimate the value of the company and is usually enough for investors to make market timing decisions.
Royal Revenue by Product
Royal Caribbean Total Value Analysis
Royal Caribbean Cruises is at this time forecasted to have company total value of 86.1 B with market capitalization of 65.62 B, debt of 22.13 B, and cash on hands of 1.94 B. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Royal Caribbean fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
86.1 B | 65.62 B | 22.13 B | 1.94 B |
Royal Caribbean Investor Information
About 79.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 0.66. Royal Caribbean Cruises recorded earning per share (EPS) of 9.98. The entity last dividend was issued on the 20th of September 2024. The firm had 2:1 split on the 3rd of August 1998. Based on the analysis of Royal Caribbean's profitability, liquidity, and operating efficiency, Royal Caribbean Cruises is doing better financially today then in previous quarter. It has a moderate probability of reporting better financial numbers in December.Royal Caribbean Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Royal Caribbean has an asset utilization ratio of 39.57 percent. This suggests that the Company is making $0.4 for each dollar of assets. An increasing asset utilization means that Royal Caribbean Cruises is more efficient with each dollar of assets it utilizes for everyday operations.Royal Caribbean Ownership Allocation
Royal Caribbean owns a total of 268.88 Million outstanding shares. The majority of Royal Caribbean Cruises outstanding shares are owned by third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Royal Caribbean Cruises to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Royal Caribbean. Please pay attention to any change in the institutional holdings of Royal Caribbean Cruises as this could imply that something significant has changed or is about to change at the company. Please note that on October 10, 2023, Representative Susie Lee of US Congress acquired under $15k worth of Royal Caribbean Cruises's common stock.Royal Caribbean Profitability Analysis
The company reported the last year's revenue of 13.9 B. Total Income to common stockholders was 1.7 B with profit before taxes, overhead, and interest of 2.38 B.Royal Caribbean Past Distributions to stockholders
About Royal Caribbean Valuation
We use absolute and relative valuation methodologies to arrive at the intrinsic value of Royal Caribbean Cruises. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Royal Caribbean Cruises based exclusively on its fundamental and basic technical indicators. By analyzing Royal Caribbean's financials, quarterly and monthly indicators, and their related drivers, we attempt to find the most accurate representation of Royal Caribbean's intrinsic value. As compared to an absolute model, our relative valuation model uses a comparative analysis of Royal Caribbean. We calculate exposure to Royal Caribbean's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Royal Caribbean's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.7 B | 4.9 B | |
| Pretax Profit Margin | 0.12 | 0.13 | |
| Operating Profit Margin | 0.21 | 0.22 | |
| Net Profit Margin | 0.12 | 0.13 | |
| Gross Profit Margin | 0.34 | 0.35 |
A single share of Royal Caribbean represents a small ownership stake in the entity. As a stockholder of Royal, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Royal Caribbean Dividends Analysis For Valuation
Please note that Royal Caribbean has scaled down on payment of dividends at this time. Price Earnings Ratio is expected to rise to 36.50 this year, although the value of Retained Earnings are projected to rise to (9.5 M).
There are various types of dividends Royal Caribbean can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Royal shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Royal Caribbean Cruises directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Royal pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Royal Caribbean by the value of the dividends paid out.
Royal Caribbean Growth Indicators
Investing in growth stocks can be very risky. If the company such as Royal Caribbean does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 283 M | |
| Quarterly Earnings Growth Y O Y | 0.154 | |
| Forward Price Earnings | 17.094 |
Royal Caribbean Current Valuation Indicators
Royal Caribbean's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Royal Caribbean's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Royal Caribbean, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Royal Caribbean's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Royal Caribbean's worth.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: Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Royal Caribbean Cruises. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators. You can also try the Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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.