Carnival Corporation & plc (CCL) Stock Valuation — PE Analysis
Travel Services · NYSE
Current Price
$27.81
PE Ratio (TTM)
12.0x
Intrinsic Value
$30.75
+9.6% margin of safety
COMPETITIVE MOAT
↑Brand Recognition and Loyalty
Carnival's established brands like Holland America Line and Princess Cruises foster strong customer loyalty. This recognition drives repeat bookings and attracts new passengers.
↑Economies of Scale in Fleet Operations
Operating a large fleet allows Carnival to achieve significant cost efficiencies in purchasing, maintenance, and marketing. This scale provides a pricing advantage over smaller competitors.
↑Prime Port Access and Itinerary Planning
Long-standing relationships and strategic planning grant access to desirable ports and unique itineraries. This exclusivity enhances the customer experience and booking appeal.
INVESTMENT RISKS
↓Regulatory and Environmental Scrutiny
The industry faces increasing regulations regarding emissions, waste, and passenger safety. Compliance costs and potential penalties pose ongoing financial and operational risks.
↓Fleet Modernization and Capital Expenditures
Maintaining and upgrading a large fleet requires substantial ongoing investment. Delays or cost overruns in new builds or refurbishments can impact profitability and competitiveness.
↓Customer Health and Safety Incidents
Any significant health outbreak or safety incident onboard can severely damage brand reputation and lead to widespread cancellations. This risk is inherent to the close-quarters nature of cruising.
Base case
CCL base case PE valuation
A base case PE valuation for CCL estimates a fair value of about $30.75 per share, against a current price of $27.81. The model assumes 3.6% annual earnings growth, a 13x target PE multiple, and a 10% discount rate.
Intrinsic Value
$30.75
Margin of safety
+9.6%
Expected annual return
+2.0%
Base case assumptions: 3.6% annual earnings growth, 13x target PE, 10% discount rate, 5 year projection. Data as of 2026-07-29.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the CCL PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for Carnival Corporation & plc respond.
Open PE Calculator for CCLCompany Overview
Carnival Corporation & plc operates as a prominent global entity in the leisure travel sector. Its extensive fleet of vessels navigates to nearly 700 different ports globally, sailing under a diverse portfolio of acclaimed brands such as Carnival Cruise Line, Princess Cruises, Holland America Line, P&O Cruises (Australia), Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises (UK), and Cunard. Beyond its core cruise operations, the company also provides port services and other related offerings. Its holdings include and it manages hotels, lodges, unique glass-domed railcars, and motor coaches. Customers primarily book their cruises through a network of travel agencies, tour operators, vacation planners, and direct online channels. The corporation maintains a broad international presence, with operations spanning the United States, Canada, continental Europe, the United Kingdom, Australia, New Zealand, Asia, and other global markets. It commands a significant fleet of 87 ships, collectively providing capacity for 223,000 passengers in lower berths. Carnival Corporation & plc was established in 1972 and has its headquarters situated in Miami, Florida.
Financial Metrics — CCL PE Stock Valuation Data
PE Ratio (TTM)
12.0x
PEG Ratio
0.57
Earnings Yield
7.99%
ROE (TTM)
24.4%
Revenue/Share (TTM)
$19.76
Dividend Yield
1.08%
Debt/Equity
2.02x
Frequently Asked Questions
What is the PE ratio of CCL?
The trailing twelve-month PE ratio of CCL reflects how much investors pay per dollar of Carnival Corporation & plc's earnings. This metric is most useful when compared to Travel Services peers and the company's own historical range.
Is CCL overvalued based on PE ratio?
CCL's PE of 12.0x combined with a PEG ratio of 0.57 provides a growth-adjusted perspective. A PEG below 1.0 means the P/E is low relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Travel Services, a DCF analysis may be more appropriate.
How do I value CCL stock using PE ratio?
To value Carnival Corporation & plc using PE: (1) Compare the current PE (12.0x) against the Travel Services median to assess relative pricing, (2) check the PEG ratio (0.57) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of CCL?
CCL's PEG ratio is 0.57, calculated by dividing the PE ratio (12.0x) by the expected earnings growth rate. A PEG below 1.0 means the P/E is low relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for CCL stock valuation?
PE ratio gives a quick relative read — how CCL is priced versus Travel Services peers. DCF provides an absolute value based on projected free cash flows. For CCL, with a strong ROE of 24.4%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See CCL DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value CCL with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-07-29. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.