Intrinsic value of Carnival - CCL

Previous Close

$68.76

  Intrinsic Value

$56.23

stock screener

  Rating & Target

hold

-18%

Previous close

$68.76

 
Intrinsic value

$56.23

 
Up/down potential

-18%

 
Rating

hold

We calculate the intrinsic value of CCL stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  6.84
  8.20
  7.88
  7.59
  7.33
  7.10
  6.89
  6.70
  6.53
  6.38
  6.24
  6.12
  6.00
  5.90
  5.81
  5.73
  5.66
  5.59
  5.53
  5.48
  5.43
  5.39
  5.35
  5.32
  5.28
  5.26
  5.23
  5.21
  5.19
  5.17
  5.15
Revenue, $m
  17,510
  18,946
  20,439
  21,990
  23,603
  25,279
  27,020
  28,831
  30,714
  32,672
  34,711
  36,834
  39,045
  41,351
  43,754
  46,263
  48,880
  51,614
  54,470
  57,456
  60,577
  63,841
  67,257
  70,832
  74,574
  78,493
  82,598
  86,899
  91,406
  96,129
  101,080
Variable operating expenses, $m
 
  15,379
  16,567
  17,802
  19,086
  20,420
  21,806
  23,248
  24,746
  26,306
  27,929
  29,322
  31,082
  32,917
  34,831
  36,828
  38,912
  41,088
  43,362
  45,738
  48,222
  50,821
  53,540
  56,386
  59,365
  62,485
  65,753
  69,176
  72,764
  76,524
  80,465
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  14,701
  15,379
  16,567
  17,802
  19,086
  20,420
  21,806
  23,248
  24,746
  26,306
  27,929
  29,322
  31,082
  32,917
  34,831
  36,828
  38,912
  41,088
  43,362
  45,738
  48,222
  50,821
  53,540
  56,386
  59,365
  62,485
  65,753
  69,176
  72,764
  76,524
  80,465
Operating income, $m
  2,809
  3,567
  3,872
  4,188
  4,517
  4,859
  5,214
  5,583
  5,967
  6,367
  6,782
  7,512
  7,963
  8,433
  8,923
  9,435
  9,969
  10,526
  11,109
  11,718
  12,354
  13,020
  13,717
  14,446
  15,209
  16,008
  16,845
  17,723
  18,642
  19,605
  20,615
EBITDA, $m
  4,547
  4,133
  4,459
  4,797
  5,149
  5,514
  5,894
  6,289
  6,700
  7,127
  7,572
  8,035
  8,518
  9,020
  9,545
  10,092
  10,663
  11,259
  11,882
  12,534
  13,214
  13,927
  14,672
  15,452
  16,268
  17,123
  18,018
  18,957
  19,940
  20,970
  22,050
Interest expense (income), $m
  211
  308
  353
  401
  452
  504
  558
  614
  672
  733
  796
  862
  930
  1,002
  1,076
  1,154
  1,234
  1,319
  1,407
  1,499
  1,596
  1,696
  1,802
  1,912
  2,027
  2,148
  2,274
  2,407
  2,545
  2,691
  2,843
Earnings before tax, $m
  2,666
  3,259
  3,518
  3,787
  4,065
  4,355
  4,656
  4,969
  5,295
  5,634
  5,986
  6,650
  7,033
  7,432
  7,847
  8,281
  8,734
  9,208
  9,702
  10,218
  10,759
  11,324
  11,915
  12,534
  13,182
  13,860
  14,571
  15,316
  16,096
  16,914
  17,772
Tax expense, $m
  60
  880
  950
  1,022
  1,098
  1,176
  1,257
  1,342
  1,430
  1,521
  1,616
  1,796
  1,899
  2,007
  2,119
  2,236
  2,358
  2,486
  2,619
  2,759
  2,905
  3,057
  3,217
  3,384
  3,559
  3,742
  3,934
  4,135
  4,346
  4,567
  4,798
Net income, $m
  2,606
  2,379
  2,568
  2,764
  2,968
  3,179
  3,399
  3,628
  3,865
  4,113
  4,370
  4,855
  5,134
  5,425
  5,729
  6,045
  6,376
  6,721
  7,082
  7,460
  7,854
  8,266
  8,698
  9,150
  9,623
  10,118
  10,637
  11,181
  11,750
  12,347
  12,973

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  395
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  40,778
  43,654
  47,094
  50,669
  54,385
  58,246
  62,259
  66,430
  70,769
  75,282
  79,979
  84,871
  89,966
  95,278
  100,817
  106,596
  112,628
  118,927
  125,508
  132,386
  139,578
  147,100
  154,970
  163,207
  171,830
  180,860
  190,318
  200,228
  210,612
  221,495
  232,904
Adjusted assets (=assets-cash), $m
  40,383
  43,654
  47,094
  50,669
  54,385
  58,246
  62,259
  66,430
  70,769
  75,282
  79,979
  84,871
  89,966
  95,278
  100,817
  106,596
  112,628
  118,927
  125,508
  132,386
  139,578
  147,100
  154,970
  163,207
  171,830
  180,860
  190,318
  200,228
  210,612
  221,495
  232,904
Revenue / Adjusted assets
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
  0.434
Average production assets, $m
  1,238
  1,345
  1,451
  1,561
  1,676
  1,795
  1,918
  2,047
  2,181
  2,320
  2,464
  2,615
  2,772
  2,936
  3,107
  3,285
  3,471
  3,665
  3,867
  4,079
  4,301
  4,533
  4,775
  5,029
  5,295
  5,573
  5,864
  6,170
  6,490
  6,825
  7,177
Working capital, $m
  -7,204
  -5,835
  -6,295
  -6,773
  -7,270
  -7,786
  -8,322
  -8,880
  -9,460
  -10,063
  -10,691
  -11,345
  -12,026
  -12,736
  -13,476
  -14,249
  -15,055
  -15,897
  -16,777
  -17,696
  -18,658
  -19,663
  -20,715
  -21,816
  -22,969
  -24,176
  -25,440
  -26,765
  -28,153
  -29,608
  -31,133
Total debt, $m
  9,195
  10,095
  11,471
  12,901
  14,387
  15,931
  17,536
  19,205
  20,940
  22,746
  24,625
  26,581
  28,620
  30,744
  32,960
  35,271
  37,684
  40,204
  42,836
  45,587
  48,464
  51,473
  54,621
  57,916
  61,365
  64,977
  68,760
  72,724
  76,878
  81,231
  85,794
Total liabilities, $m
  16,562
  17,462
  18,838
  20,268
  21,754
  23,298
  24,903
  26,572
  28,307
  30,113
  31,992
  33,948
  35,987
  38,111
  40,327
  42,638
  45,051
  47,571
  50,203
  52,954
  55,831
  58,840
  61,988
  65,283
  68,732
  72,344
  76,127
  80,091
  84,245
  88,598
  93,161
Total equity, $m
  24,216
  26,192
  28,256
  30,402
  32,631
  34,947
  37,355
  39,858
  42,461
  45,169
  47,988
  50,922
  53,980
  57,167
  60,490
  63,957
  67,577
  71,356
  75,305
  79,432
  83,747
  88,260
  92,982
  97,924
  103,098
  108,516
  114,191
  120,137
  126,367
  132,897
  139,742
Total liabilities and equity, $m
  40,778
  43,654
  47,094
  50,670
  54,385
  58,245
  62,258
  66,430
  70,768
  75,282
  79,980
  84,870
  89,967
  95,278
  100,817
  106,595
  112,628
  118,927
  125,508
  132,386
  139,578
  147,100
  154,970
  163,207
  171,830
  180,860
  190,318
  200,228
  210,612
  221,495
  232,903
Debt-to-equity ratio
  0.380
  0.390
  0.410
  0.420
  0.440
  0.460
  0.470
  0.480
  0.490
  0.500
  0.510
  0.520
  0.530
  0.540
  0.540
  0.550
  0.560
  0.560
  0.570
  0.570
  0.580
  0.580
  0.590
  0.590
  0.600
  0.600
  0.600
  0.610
  0.610
  0.610
  0.610
Adjusted equity ratio
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600
  0.600

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,606
  2,379
  2,568
  2,764
  2,968
  3,179
  3,399
  3,628
  3,865
  4,113
  4,370
  4,855
  5,134
  5,425
  5,729
  6,045
  6,376
  6,721
  7,082
  7,460
  7,854
  8,266
  8,698
  9,150
  9,623
  10,118
  10,637
  11,181
  11,750
  12,347
  12,973
Depreciation, amort., depletion, $m
  1,738
  566
  587
  609
  632
  656
  680
  706
  733
  761
  790
  523
  554
  587
  621
  657
  694
  733
  773
  816
  860
  907
  955
  1,006
  1,059
  1,115
  1,173
  1,234
  1,298
  1,365
  1,435
Funds from operations, $m
  5,578
  2,945
  3,155
  3,373
  3,600
  3,835
  4,080
  4,334
  4,598
  4,873
  5,160
  5,378
  5,688
  6,012
  6,350
  6,702
  7,070
  7,454
  7,856
  8,275
  8,714
  9,173
  9,653
  10,156
  10,682
  11,233
  11,810
  12,415
  13,048
  13,712
  14,409
Change in working capital, $m
  444
  -442
  -460
  -478
  -497
  -516
  -536
  -558
  -580
  -603
  -628
  -654
  -681
  -710
  -740
  -772
  -806
  -842
  -880
  -919
  -961
  -1,005
  -1,052
  -1,101
  -1,153
  -1,207
  -1,264
  -1,325
  -1,388
  -1,455
  -1,525
Cash from operations, $m
  5,134
  3,387
  3,615
  3,851
  4,096
  4,351
  4,616
  4,891
  5,178
  5,477
  5,788
  6,032
  6,370
  6,722
  7,090
  7,475
  7,877
  8,296
  8,736
  9,195
  9,675
  10,178
  10,705
  11,257
  11,834
  12,440
  13,074
  13,739
  14,436
  15,167
  15,934
Maintenance CAPEX, $m
  0
  -248
  -269
  -290
  -312
  -335
  -359
  -384
  -409
  -436
  -464
  -493
  -523
  -554
  -587
  -621
  -657
  -694
  -733
  -773
  -816
  -860
  -907
  -955
  -1,006
  -1,059
  -1,115
  -1,173
  -1,234
  -1,298
  -1,365
New CAPEX, $m
  -3,062
  -108
  -106
  -110
  -114
  -119
  -124
  -129
  -134
  -139
  -145
  -151
  -157
  -164
  -171
  -178
  -186
  -194
  -203
  -212
  -222
  -232
  -243
  -254
  -266
  -278
  -291
  -305
  -320
  -335
  -352
Cash from investing activities, $m
  -3,323
  -356
  -375
  -400
  -426
  -454
  -483
  -513
  -543
  -575
  -609
  -644
  -680
  -718
  -758
  -799
  -843
  -888
  -936
  -985
  -1,038
  -1,092
  -1,150
  -1,209
  -1,272
  -1,337
  -1,406
  -1,478
  -1,554
  -1,633
  -1,717
Free cash flow, $m
  1,811
  3,032
  3,240
  3,451
  3,670
  3,897
  4,133
  4,379
  4,635
  4,901
  5,179
  5,388
  5,689
  6,004
  6,332
  6,675
  7,034
  7,408
  7,800
  8,209
  8,638
  9,086
  9,556
  10,048
  10,563
  11,103
  11,668
  12,261
  12,882
  13,534
  14,217
Issuance/(repayment) of debt, $m
  711
  1,295
  1,376
  1,430
  1,486
  1,544
  1,605
  1,669
  1,735
  1,805
  1,879
  1,957
  2,038
  2,125
  2,216
  2,312
  2,413
  2,520
  2,632
  2,751
  2,877
  3,009
  3,148
  3,295
  3,449
  3,612
  3,783
  3,964
  4,154
  4,353
  4,563
Issuance/(repurchase) of shares, $m
  -2,300
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -1,614
  1,295
  1,376
  1,430
  1,486
  1,544
  1,605
  1,669
  1,735
  1,805
  1,879
  1,957
  2,038
  2,125
  2,216
  2,312
  2,413
  2,520
  2,632
  2,751
  2,877
  3,009
  3,148
  3,295
  3,449
  3,612
  3,783
  3,964
  4,154
  4,353
  4,563
Total cash flow (excl. dividends), $m
  185
  4,327
  4,616
  4,881
  5,156
  5,441
  5,738
  6,048
  6,370
  6,707
  7,058
  7,344
  7,728
  8,129
  8,548
  8,987
  9,447
  9,928
  10,432
  10,961
  11,515
  12,095
  12,704
  13,343
  14,012
  14,715
  15,452
  16,225
  17,036
  17,887
  18,781
Retained Cash Flow (-), $m
  -1,619
  -1,976
  -2,064
  -2,145
  -2,229
  -2,317
  -2,408
  -2,503
  -2,603
  -2,708
  -2,818
  -2,935
  -3,057
  -3,187
  -3,323
  -3,467
  -3,619
  -3,780
  -3,949
  -4,127
  -4,315
  -4,513
  -4,722
  -4,942
  -5,174
  -5,418
  -5,675
  -5,946
  -6,230
  -6,530
  -6,845
Prev. year cash balance distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  2,350
  2,552
  2,736
  2,926
  3,125
  3,331
  3,545
  3,767
  3,999
  4,239
  4,410
  4,670
  4,942
  5,225
  5,520
  5,827
  6,148
  6,484
  6,834
  7,200
  7,582
  7,982
  8,400
  8,838
  9,297
  9,776
  10,279
  10,806
  11,357
  11,935
Discount rate, %
 
  4.60
  4.83
  5.07
  5.33
  5.59
  5.87
  6.16
  6.47
  6.80
  7.14
  7.49
  7.87
  8.26
  8.67
  9.11
  9.56
  10.04
  10.54
  11.07
  11.62
  12.21
  12.82
  13.46
  14.13
  14.84
  15.58
  16.36
  17.17
  18.03
  18.93
PV of cash for distribution, $m
 
  2,247
  2,322
  2,358
  2,378
  2,381
  2,365
  2,332
  2,281
  2,213
  2,128
  1,992
  1,882
  1,761
  1,630
  1,493
  1,352
  1,209
  1,067
  930
  798
  675
  562
  461
  371
  293
  227
  172
  128
  93
  66
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

Carnival Corporation is a leisure travel company. The Company is a cruise company of global cruise guests, and a provider of vacations to all cruise destinations throughout the world. The Company operates in four segments: North America, EAA, Cruise Support and, Tour and Other. The Company's North America segment includes Carnival Cruise Line, Holland America Line, Princess Cruises (Princess) and Seabourn. The Company's Cruise Support segment represents certain of its port and related facilities and other services that are provided for the benefit of its cruise brands and Fathom's selling, general and administrative expenses. Its EAA segment includes AIDA Cruises (AIDA), Costa Cruises (Costa), Cunard, P&O Cruises (Australia), P&O Cruises (the United Kingdom) and ship operations of Fathom. Its Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and three ships that the Company bareboat charter to unaffiliated entities.

FINANCIAL RATIOS  of  Carnival (CCL)

Valuation Ratios
P/E Ratio 18.9
Price to Sales 2.8
Price to Book 2
Price to Tangible Book
Price to Cash Flow 9.6
Price to Free Cash Flow 23.8
Growth Rates
Sales Growth Rate 6.8%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 33.5%
Cap. Spend. - 3 Yr. Gr. Rate 7.3%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 28.9%
Total Debt to Equity 38%
Interest Coverage 14
Management Effectiveness
Return On Assets 7.1%
Ret/ On Assets - 3 Yr. Avg. 6.6%
Return On Total Capital 8%
Ret/ On T. Cap. - 3 Yr. Avg. 7.3%
Return On Equity 11.1%
Return On Equity - 3 Yr. Avg. 10.1%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 40%
Gross Margin - 3 Yr. Avg. 40.9%
EBITDA Margin 26.4%
EBITDA Margin - 3 Yr. Avg. 26.2%
Operating Margin 16%
Oper. Margin - 3 Yr. Avg. 17.1%
Pre-Tax Margin 15.2%
Pre-Tax Margin - 3 Yr. Avg. 14.6%
Net Profit Margin 14.9%
Net Profit Margin - 3 Yr. Avg. 14.3%
Effective Tax Rate 2.3%
Eff/ Tax Rate - 3 Yr. Avg. 2.1%
Payout Ratio 37.5%

CCL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the CCL stock intrinsic value calculation we used $17510 million for the last fiscal year's total revenue generated by Carnival. The default revenue input number comes from 2017 income statement of Carnival. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our CCL stock valuation model: a) initial revenue growth rate of 8.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.6%, whose default value for CCL is calculated based on our internal credit rating of Carnival, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Carnival.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of CCL stock the variable cost ratio is equal to 81.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for CCL stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Carnival.

Corporate tax rate of 27% is the nominal tax rate for Carnival. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the CCL stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for CCL are equal to 7.1%.

Life of production assets of 2.4 years is the average useful life of capital assets used in Carnival operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for CCL is equal to -30.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $24216 million for Carnival - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 716.589 million for Carnival is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Carnival at the current share price and the inputted number of shares is $49.3 billion.

RELATED COMPANIES Price Int.Val. Rating
NCLH Norwegian Crui 57.90 24.28  str.sell
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COMPANY NEWS

▶ Argument on Carnival Cruise Ship Turns Into Massive Brawl   [Feb-16-18 02:21PM  TheStreet.com]
▶ Brazilians Take Carnival Back to the Streets   [Feb-09-18 02:35PM  Bloomberg]
▶ 3 Top Cruise Line Stocks to Buy Now   [01:15PM  Motley Fool]
▶ A look at new ships and trends in cruising for 2018   [Jan-30-18 09:50PM  Associated Press]
▶ Carnival names Perez senior VP of sales, trade marketing   [11:50AM  American City Business Journals]
▶ 3 Top Dividend Stocks With Yields Over 2%   [10:34AM  Motley Fool]
▶ Carnival's new Miracle ship sails into Port Tampa Bay (Photos)   [Jan-28-18 07:15AM  American City Business Journals]
▶ Royal Caribbean Continues to Cruise   [Jan-25-18 06:15PM  Motley Fool]
▶ Carnival Stock in Ascending Triangle Pattern   [Jan-22-18 04:03PM  Investopedia]
▶ Key Events for Consumer Stocks on January 1519   [Jan-17-18 10:31AM  Market Realist]
▶ Yahoo Finance Live: Midday Movers - Jan 11th, 2018   [Jan-11-18 09:40AM  Yahoo Finance Video]
▶ The Cleanest Cruise Ships Afloat   [06:54AM  TheStreet.com]
▶ Carnival Cruise Line Wants You To Choose Fun   [Jan-08-18 11:40AM  PR Newswire]
▶ Weekly CFO Sells Highlight   [11:09AM  GuruFocus.com]
▶ How to Invest in Travel Stocks   [Jan-06-18 06:31PM  Motley Fool]
▶ Carnival launching new ships across four brands in 2018   [Jan-04-18 09:35AM  MarketWatch]
Financial statements of CCL
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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