Carnival Corporation & plc (CCL) Stock Valuation — PE Analysis
Leisure · NYSE
Current Price
$29.18
PE Ratio (TTM)
13.0x
Intrinsic Value
$44.24
+34.0% margin of safety
COMPETITIVE MOAT
↑Unmatched Fleet Scale
CCL operates the largest fleet in the cruise industry, enabling significant economies of scale in purchasing, marketing, and operations. This vast network provides broad customer reach and diverse itinerary options.
↑Brand Portfolio Strength
The company manages a diverse portfolio of cruise lines, catering to various market segments from luxury (Seabourn) to contemporary (Carnival Cruise Line). This broad appeal captures a wider customer base.
↑Customer Loyalty & Repeat Business
A strong base of repeat customers and established loyalty programs drive consistent demand. The recent Seabourn drydock enhances the premium experience, aiming to retain high-value guests.
INVESTMENT RISKS
↓Cybersecurity Vulnerabilities
A recent data breach exposing millions of customer records highlights significant cybersecurity risks. This could lead to reputational damage and regulatory fines, impacting customer trust.
↓Operational Disruptions & Costs
Complex global operations are susceptible to disruptions from geopolitical events, health crises, or environmental factors. The recent stock decline suggests market sensitivity to operational challenges.
↓Intense Industry Competition
The cruise industry is highly competitive, with rivals like Royal Caribbean investing heavily in new ships and experiences. Maintaining market share requires continuous innovation and significant capital expenditure.
Base case
CCL base case PE valuation
A base case PE valuation for CCL estimates a fair value of about $44.24 per share, against a current price of $29.18. The model assumes 12.2% annual earnings growth, a 13x target PE multiple, and a 10% discount rate.
Intrinsic Value
$44.24
Margin of safety
+34.0%
Expected annual return
+8.7%
Base case assumptions: 12.2% annual earnings growth, 13x target PE, 10% discount rate, 5 year projection. Data as of 2026-06-12.
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)
13.0x
PEG Ratio
0.25
Earnings Yield
7.70%
ROE (TTM)
26.2%
Revenue/Share (TTM)
$19.56
Dividend Yield
1.03%
Debt/Equity
2.04x
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 Leisure peers and the company's own historical range.
Is CCL overvalued based on PE ratio?
CCL's PE of 13.0x combined with a PEG ratio of 0.25 provides a growth-adjusted perspective. A PEG below 1.0 suggests CCL may be undervalued relative to its earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Leisure, 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 (13.0x) against the Leisure median to assess relative pricing, (2) check the PEG ratio (0.25) 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 0.25, calculated by dividing the PE ratio (13.0x) by the expected earnings growth rate. A PEG below 1.0 is traditionally considered a sign of undervaluation — the market may not be fully pricing in the growth potential. 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 Leisure peers. DCF provides an absolute value based on projected free cash flows. For CCL, with a strong ROE of 26.2%, 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 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.