Using the industry peer median P/E multiple (trailing + forward), Royal Caribbean Cruises Ltd. (RCL) has a fair value of $317.80 based on 4 comparable companies in the Travel Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Royal Caribbean Cruises Ltd.RCL | 75,001 | 17.6x | 15.2x |
| Booking Holdings Inc.BKNG | 135,358 | 25.4x | 15.6x |
| Airbnb, Inc.ABNB | 78,321 | 32.4x | 26.3x |
| Expedia Group, Inc.EXPE | 27,371 | 23.8x | 12.2x |
| Norwegian Cruise Line Holdings Ltd.NCLH | 8,979 | 21.9x | 9.5x |
| Industry Median | 24.6x | 13.9x | |
| (*) Profit after tax | 4,273 | 4,921 | |
| Equity Value | 105,131 | 68,389 | |
| (/) Outstanding shares | 273 | 273 | |
| Fair Price | $385 | $251 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.