* Note: Prices are in Million (M) USD.
Description:
Royal Caribbean Group, formerly known as Royal Caribbean Cruises Ltd., is an American global cruise holding company incorporated in Liberia and based in Miami, Florida, US.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $388 M
Debt : $20,820 M
EBITDA : $6,189 M
Net Debt (Debt - Cash): $20,432 M
Since Net Debt is covered by EBITDA within 3 years, 1 points assigned.
This criteria used industry in which company operates:
Sector: Consumer cyclical
Industry: Leisure
Based on industry, 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Forward PE Ratio: 21.64
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-412 M
Average Revenue: $7,785 M
Revenue Converted To Free Cash Flow (%): -5.3%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $16,485 M
Revenue 4 Years Ago (2020-12-31): $2,209 M
Last 5 Years Average Revenue Growth: 129%
Since Revenue Growth is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $279 M
Share Count 5 Years Ago (2020-12-31): $214 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $18.31
Trailing 12-Month Earnings Per Share (EPS): $15.50
Average Earnings Per Share (EPS): $16.91
Dividend Per Share (DPS): $2
Payout Ratio: 14%
Dividend Yield: 1%
Since company Payout Ratio is less than 50, 2 points assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 20 valid ROE years (max 20).Average ROE: -1.5%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $366
52-Week Low: $149
Threshold Price (15% Above 52-Week Low): $171
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $85,296 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Value-Trade has assigned 15 points to above Royal Caribbean Cruises Ltd (RCL) stock.
Heads up: One or more P/E inputs look exaggerated and may skew the blend.
• Growth Based PE
50.00 (>2× median)
Further research is recommended; please use your own due diligence.In such cases, multiplying earnings by the long-run average P/E typically gives a closer, more reliable fair value.
Rule of thumb: Last 17 Years Avg P/E (16.94)
× EPS ($16.91) = $286.37.
Last 17 Years Avg PE 16.94, Fair Value PE 12, Industry Based PE 15, Growth Based PE 50, RCFC Based PE 12, ROE Based PE 10, Risk-Free Anchored PE (25% MoS) 17.08. Based on these 7 values, average assigned is 19.00. Value-Trades has assined P/E value 19.00. Since an average (Current Year EPS + Next Year EPS) earning per share is $16.905.
The fair value of Royal Caribbean Cruises Ltd (RCL) stock should be (19.00 x $16.905) = $321.25.
