Travel Services · NYSE
Current Price
$254.01
Intrinsic Value
Use the calculator below to estimate
Run a PE ratio stock valuation on Royal Caribbean Cruises Ltd. with auto-filled earnings data, adjustable target PE, and instant fair value estimate.
Open PE Calculator for RCLRoyal Caribbean Cruises Ltd. operates as a cruise company worldwide. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Azamara, and Silversea Cruises brands, which comprise a range of itineraries that call on approximately 1,000 destinations. As of February 25, 2022, it operated 61 ships. The company was founded in 1968 and is headquartered in Miami, Florida.
Earnings Yield
6.21%
ROE (TTM)
45.9%
Based on trailing twelve-month data, RCL has earnings per share of N/A and trades at a PE ratio of N/A. These are key inputs for stock valuation using the PE ratio method.
The trailing twelve-month PE ratio of RCL reflects how much investors pay per dollar of Royal Caribbean Cruises Ltd.'s earnings. This metric is most useful when compared to Travel Services peers and the company's own historical range.
Whether RCL is overvalued depends on comparing its PE ratio to Travel Services peers, historical averages, and growth expectations. A PE above the sector average may indicate overvaluation, but high-growth companies often command premium multiples. Consider pairing PE analysis with a DCF model for a more complete picture.
To value Royal Caribbean Cruises Ltd. using PE: (1) Compare the current PE against the Travel Services median to assess relative pricing, (2) check the PEG ratio 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.
The PEG ratio divides the PE ratio by the expected earnings growth rate, providing a growth-adjusted valuation metric. A PEG below 1.0 may indicate undervaluation relative to growth, while above 2.0 may suggest overvaluation. PEG is most reliable for companies with stable, predictable earnings growth.
PE ratio gives a quick relative read — how RCL is priced versus Travel Services peers. DCF provides an absolute value based on projected free cash flows. For RCL, with a strong ROE of 45.9%, 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.
