Royal Stock Valuation

RCL
 Stock
  

USD 37.59  0.31  0.82%   

What is the enterprise value of Royal Caribbean? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Royal Caribbean, is its stock price multiplied by the total number of shares outstanding, calculating Royal Caribbean's enterprise value requires a different approach. It uses Royal Caribbean's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Royal Caribbean Cruises holds a recent Real Value of $54.43 per share. The prevailing price of the company is $37.59. At this time, the company appears to be undervalued. Our model determines the value of Royal Caribbean Cruises from analyzing the company fundamentals such as Shares Outstanding of 254.79 M, return on equity of (79.25) %, and Operating Margin of (65.83) % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we support acquiring undervalued entities and dropping overvalued entities since, at some point, asset prices and their ongoing real values will merge together.
  
Royal Caribbean Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Royal Caribbean's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 37.59
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.
Our valuation method for Royal Caribbean Cruises is useful when determining the fair value of the Royal stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Royal Caribbean. 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.
54.43
Real Value
59.04
Upside
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:
Hype
Prediction
LowEstimated ValueHigh
33.2837.8942.50
Details
13 Analysts
Consensus
LowTarget PriceHigh
85.00101.67120.00
Details

Royal Caribbean Valuation Ratios as Compared to Competition

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. You can analyze the relationship between different fundamental ratios across Royal Caribbean competition to find correlations between indicators driving Royal Caribbean's intrinsic value. More Info.
Royal Caribbean Cruises is currently regarded as top stock in beta category among related companies. It is currently regarded as top stock in last dividend paid category among related companies creating about  0.31  of Last Dividend Paid per Beta. The ratio of Beta to Last Dividend Paid for Royal Caribbean Cruises is roughly  3.24 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Royal Caribbean by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Royal Caribbean's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Royal Caribbean's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Royal Caribbean's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Royal Caribbean and how it compares across the competition.

About Royal Caribbean Valuation

The stock valuation mechanism determines the current worth of Royal Caribbean Cruises on a weekly basis. We use both absolute as well as 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 its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Royal Caribbean's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. 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, relevant financial multiples and ratios, and then comparing them to Royal Caribbean's related companies.
Royal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company was founded in 1968 and is headquartered in Miami, Florida. Royal Caribbean operates under Travel Services classification in the United States and is traded on New York Stock Exchange. It employs 84900 people.

Royal Caribbean Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, 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.
Quick Ratio0.23
Revenue Growth4,190.10%
Enterprise Value To Ebitda-18.25
Enterprise Value To Revenue6.75
Additionally, take a look at Your Equity Center. Note that the Royal Caribbean Cruises information on this page should be used as a complementary analysis to other Royal Caribbean's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Commodity Channel Index module to use Commodity Channel Index to analyze current equity momentum.

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When running Royal Caribbean Cruises price analysis, check to measure Royal Caribbean's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Royal Caribbean is operating at the current time. Most of Royal Caribbean's value examination focuses on studying past and present price action to predict the probability of Royal Caribbean's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Royal Caribbean's price. Additionally, you may evaluate how the addition of Royal Caribbean to your portfolios can decrease your overall portfolio volatility.
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Is Royal Caribbean's industry 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.
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 Royal Caribbean value 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.