Intrinsic value of Norwegian Cruise Line Holdings - NCLH

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$55.46

  Intrinsic Value

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  Value-price divergence*

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$55.46

 
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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of NCLH 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

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 12.6

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   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

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  12.17
  8.50
  8.15
  7.83
  7.55
  7.30
  7.07
  6.86
  6.67
  6.51
  6.36
  6.22
  6.10
  5.99
  5.89
  5.80
  5.72
  5.65
  5.58
  5.53
  5.47
  5.43
  5.38
  5.34
  5.31
  5.28
  5.25
  5.23
  5.20
  5.18
  5.16
Revenue, $m
  4,874
  5,288
  5,719
  6,167
  6,633
  7,117
  7,620
  8,143
  8,686
  9,251
  9,839
  10,451
  11,089
  11,753
  12,445
  13,167
  13,920
  14,707
  15,528
  16,386
  17,282
  18,220
  19,201
  20,227
  21,301
  22,426
  23,603
  24,837
  26,129
  27,484
  28,903
Variable operating expenses, $m
 
  3,045
  3,282
  3,528
  3,784
  4,050
  4,326
  4,613
  4,912
  5,223
  5,546
  5,743
  6,093
  6,458
  6,839
  7,235
  7,649
  8,081
  8,533
  9,004
  9,497
  10,012
  10,551
  11,115
  11,705
  12,323
  12,970
  13,648
  14,358
  15,102
  15,882
Fixed operating expenses, $m
 
  1,187
  1,217
  1,247
  1,278
  1,310
  1,343
  1,376
  1,411
  1,446
  1,482
  1,519
  1,557
  1,596
  1,636
  1,677
  1,719
  1,762
  1,806
  1,851
  1,898
  1,945
  1,994
  2,043
  2,095
  2,147
  2,201
  2,256
  2,312
  2,370
  2,429
Total operating expenses, $m
  3,949
  4,232
  4,499
  4,775
  5,062
  5,360
  5,669
  5,989
  6,323
  6,669
  7,028
  7,262
  7,650
  8,054
  8,475
  8,912
  9,368
  9,843
  10,339
  10,855
  11,395
  11,957
  12,545
  13,158
  13,800
  14,470
  15,171
  15,904
  16,670
  17,472
  18,311
Operating income, $m
  925
  1,057
  1,221
  1,392
  1,571
  1,757
  1,951
  2,153
  2,363
  2,583
  2,811
  3,189
  3,438
  3,698
  3,970
  4,255
  4,552
  4,863
  5,189
  5,530
  5,888
  6,263
  6,656
  7,069
  7,502
  7,956
  8,433
  8,933
  9,459
  10,012
  10,592
EBITDA, $m
  1,371
  1,624
  1,823
  2,031
  2,247
  2,473
  2,707
  2,952
  3,206
  3,471
  3,748
  4,036
  4,337
  4,651
  4,979
  5,322
  5,680
  6,055
  6,447
  6,858
  7,289
  7,740
  8,212
  8,708
  9,228
  9,773
  10,345
  10,946
  11,577
  12,239
  12,934
Interest expense (income), $m
  303
  295
  329
  363
  399
  436
  475
  516
  558
  601
  647
  694
  743
  794
  847
  903
  961
  1,021
  1,084
  1,150
  1,219
  1,291
  1,366
  1,445
  1,527
  1,613
  1,704
  1,798
  1,897
  2,001
  2,109
Earnings before tax, $m
  640
  762
  892
  1,029
  1,172
  1,321
  1,476
  1,637
  1,806
  1,981
  2,165
  2,495
  2,695
  2,904
  3,123
  3,352
  3,591
  3,842
  4,105
  4,380
  4,669
  4,972
  5,290
  5,624
  5,974
  6,343
  6,729
  7,135
  7,562
  8,011
  8,482
Tax expense, $m
  7
  206
  241
  278
  316
  357
  398
  442
  488
  535
  585
  674
  728
  784
  843
  905
  970
  1,037
  1,108
  1,183
  1,261
  1,343
  1,428
  1,518
  1,613
  1,712
  1,817
  1,927
  2,042
  2,163
  2,290
Net income, $m
  633
  556
  651
  751
  856
  964
  1,077
  1,195
  1,318
  1,446
  1,580
  1,822
  1,968
  2,120
  2,280
  2,447
  2,622
  2,805
  2,997
  3,198
  3,409
  3,630
  3,862
  4,106
  4,361
  4,630
  4,912
  5,209
  5,520
  5,848
  6,192

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  128
  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
  12,974
  13,953
  15,090
  16,273
  17,502
  18,779
  20,106
  21,485
  22,919
  24,410
  25,962
  27,576
  29,258
  31,010
  32,837
  34,741
  36,729
  38,804
  40,970
  43,234
  45,600
  48,074
  50,662
  53,370
  56,204
  59,171
  62,278
  65,533
  68,943
  72,516
  76,261
Adjusted assets (=assets-cash), $m
  12,846
  13,953
  15,090
  16,273
  17,502
  18,779
  20,106
  21,485
  22,919
  24,410
  25,962
  27,576
  29,258
  31,010
  32,837
  34,741
  36,729
  38,804
  40,970
  43,234
  45,600
  48,074
  50,662
  53,370
  56,204
  59,171
  62,278
  65,533
  68,943
  72,516
  76,261
Revenue / Adjusted assets
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
  0.379
Average production assets, $m
  10,703
  11,613
  12,560
  13,544
  14,566
  15,629
  16,734
  17,882
  19,075
  20,316
  21,607
  22,951
  24,351
  25,809
  27,329
  28,915
  30,569
  32,296
  34,099
  35,983
  37,952
  40,011
  42,165
  44,419
  46,777
  49,247
  51,833
  54,542
  57,380
  60,354
  63,471
Working capital, $m
  -1,902
  -1,597
  -1,727
  -1,863
  -2,003
  -2,149
  -2,301
  -2,459
  -2,623
  -2,794
  -2,972
  -3,156
  -3,349
  -3,549
  -3,758
  -3,976
  -4,204
  -4,441
  -4,689
  -4,948
  -5,219
  -5,502
  -5,799
  -6,109
  -6,433
  -6,773
  -7,128
  -7,501
  -7,891
  -8,300
  -8,729
Total debt, $m
  6,399
  6,991
  7,727
  8,492
  9,287
  10,113
  10,971
  11,864
  12,791
  13,756
  14,760
  15,805
  16,893
  18,027
  19,208
  20,441
  21,727
  23,069
  24,471
  25,935
  27,466
  29,067
  30,741
  32,493
  34,327
  36,246
  38,257
  40,363
  42,569
  44,881
  47,304
Total liabilities, $m
  8,436
  9,028
  9,764
  10,529
  11,324
  12,150
  13,008
  13,901
  14,828
  15,793
  16,797
  17,842
  18,930
  20,064
  21,245
  22,478
  23,764
  25,106
  26,508
  27,972
  29,503
  31,104
  32,778
  34,530
  36,364
  38,283
  40,294
  42,400
  44,606
  46,918
  49,341
Total equity, $m
  4,538
  4,926
  5,327
  5,744
  6,178
  6,629
  7,097
  7,584
  8,090
  8,617
  9,164
  9,734
  10,328
  10,947
  11,591
  12,264
  12,965
  13,698
  14,462
  15,262
  16,097
  16,970
  17,884
  18,839
  19,840
  20,887
  21,984
  23,133
  24,337
  25,598
  26,920
Total liabilities and equity, $m
  12,974
  13,954
  15,091
  16,273
  17,502
  18,779
  20,105
  21,485
  22,918
  24,410
  25,961
  27,576
  29,258
  31,011
  32,836
  34,742
  36,729
  38,804
  40,970
  43,234
  45,600
  48,074
  50,662
  53,369
  56,204
  59,170
  62,278
  65,533
  68,943
  72,516
  76,261
Debt-to-equity ratio
  1.410
  1.420
  1.450
  1.480
  1.500
  1.530
  1.550
  1.560
  1.580
  1.600
  1.610
  1.620
  1.640
  1.650
  1.660
  1.670
  1.680
  1.680
  1.690
  1.700
  1.710
  1.710
  1.720
  1.720
  1.730
  1.740
  1.740
  1.740
  1.750
  1.750
  1.760
Adjusted equity ratio
  0.343
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353
  0.353

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  633
  556
  651
  751
  856
  964
  1,077
  1,195
  1,318
  1,446
  1,580
  1,822
  1,968
  2,120
  2,280
  2,447
  2,622
  2,805
  2,997
  3,198
  3,409
  3,630
  3,862
  4,106
  4,361
  4,630
  4,912
  5,209
  5,520
  5,848
  6,192
Depreciation, amort., depletion, $m
  446
  567
  602
  639
  676
  716
  756
  799
  843
  889
  936
  847
  899
  952
  1,008
  1,067
  1,128
  1,192
  1,258
  1,328
  1,400
  1,476
  1,556
  1,639
  1,726
  1,817
  1,913
  2,013
  2,117
  2,227
  2,342
Funds from operations, $m
  1,314
  1,124
  1,254
  1,390
  1,532
  1,680
  1,834
  1,994
  2,161
  2,335
  2,517
  2,668
  2,866
  3,073
  3,288
  3,514
  3,750
  3,996
  4,255
  4,525
  4,809
  5,106
  5,418
  5,745
  6,087
  6,447
  6,825
  7,221
  7,638
  8,075
  8,534
Change in working capital, $m
  74
  -125
  -130
  -135
  -141
  -146
  -152
  -158
  -164
  -171
  -178
  -185
  -192
  -201
  -209
  -218
  -227
  -237
  -248
  -259
  -271
  -283
  -296
  -310
  -324
  -340
  -356
  -373
  -390
  -409
  -429
Cash from operations, $m
  1,240
  1,568
  1,384
  1,525
  1,673
  1,826
  1,986
  2,152
  2,325
  2,506
  2,694
  2,853
  3,059
  3,273
  3,497
  3,732
  3,977
  4,234
  4,503
  4,785
  5,080
  5,389
  5,714
  6,055
  6,412
  6,787
  7,181
  7,594
  8,028
  8,484
  8,963
Maintenance CAPEX, $m
  0
  -395
  -429
  -463
  -500
  -538
  -577
  -617
  -660
  -704
  -750
  -797
  -847
  -899
  -952
  -1,008
  -1,067
  -1,128
  -1,192
  -1,258
  -1,328
  -1,400
  -1,476
  -1,556
  -1,639
  -1,726
  -1,817
  -1,913
  -2,013
  -2,117
  -2,227
New CAPEX, $m
  -1,092
  -910
  -946
  -984
  -1,023
  -1,063
  -1,104
  -1,148
  -1,193
  -1,241
  -1,291
  -1,344
  -1,400
  -1,458
  -1,520
  -1,585
  -1,654
  -1,727
  -1,803
  -1,884
  -1,969
  -2,059
  -2,154
  -2,254
  -2,359
  -2,469
  -2,586
  -2,709
  -2,838
  -2,974
  -3,117
Cash from investing activities, $m
  -1,129
  -1,305
  -1,375
  -1,447
  -1,523
  -1,601
  -1,681
  -1,765
  -1,853
  -1,945
  -2,041
  -2,141
  -2,247
  -2,357
  -2,472
  -2,593
  -2,721
  -2,855
  -2,995
  -3,142
  -3,297
  -3,459
  -3,630
  -3,810
  -3,998
  -4,195
  -4,403
  -4,622
  -4,851
  -5,091
  -5,344
Free cash flow, $m
  111
  263
  9
  78
  150
  226
  304
  386
  472
  561
  653
  712
  812
  916
  1,025
  1,138
  1,256
  1,379
  1,508
  1,642
  1,783
  1,930
  2,084
  2,245
  2,414
  2,591
  2,777
  2,972
  3,177
  3,393
  3,619
Issuance/(repayment) of debt, $m
  10
  720
  736
  765
  795
  826
  859
  892
  928
  965
  1,004
  1,045
  1,088
  1,134
  1,182
  1,232
  1,286
  1,342
  1,402
  1,465
  1,531
  1,601
  1,674
  1,752
  1,834
  1,920
  2,010
  2,106
  2,206
  2,312
  2,423
Issuance/(repurchase) of shares, $m
  -43
  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  
  -98
  720
  736
  765
  795
  826
  859
  892
  928
  965
  1,004
  1,045
  1,088
  1,134
  1,182
  1,232
  1,286
  1,342
  1,402
  1,465
  1,531
  1,601
  1,674
  1,752
  1,834
  1,920
  2,010
  2,106
  2,206
  2,312
  2,423
Total cash flow (excl. dividends), $m
  12
  982
  745
  843
  945
  1,052
  1,163
  1,279
  1,400
  1,526
  1,657
  1,757
  1,900
  2,050
  2,207
  2,370
  2,542
  2,721
  2,910
  3,107
  3,314
  3,530
  3,758
  3,997
  4,248
  4,511
  4,788
  5,078
  5,384
  5,705
  6,042
Retained Cash Flow (-), $m
  -757
  -388
  -401
  -417
  -434
  -451
  -468
  -487
  -506
  -526
  -548
  -570
  -594
  -619
  -645
  -672
  -702
  -732
  -765
  -799
  -835
  -873
  -913
  -956
  -1,000
  -1,047
  -1,097
  -1,149
  -1,204
  -1,261
  -1,322
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
 
  595
  343
  426
  511
  601
  694
  792
  893
  999
  1,109
  1,187
  1,306
  1,431
  1,562
  1,698
  1,840
  1,989
  2,145
  2,308
  2,478
  2,657
  2,845
  3,041
  3,247
  3,464
  3,691
  3,929
  4,180
  4,443
  4,720
Discount rate, %
 
  8.70
  9.14
  9.59
  10.07
  10.57
  11.10
  11.66
  12.24
  12.85
  13.50
  14.17
  14.88
  15.62
  16.41
  17.23
  18.09
  18.99
  19.94
  20.94
  21.98
  23.08
  24.24
  25.45
  26.72
  28.06
  29.46
  30.93
  32.48
  34.11
  35.81
PV of cash for distribution, $m
 
  547
  288
  323
  348
  364
  369
  366
  355
  336
  313
  276
  247
  217
  186
  157
  129
  103
  81
  62
  47
  34
  24
  17
  11
  7
  4
  3
  2
  1
  0
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

Norwegian Cruise Line Holdings Ltd. operates as a cruise company. It provides cruise itineraries ranging from 1 to 180-days calling on worldwide locations. The company offers its products through independent travel agents, wholesalers, and tour operators. It operates 24 ships under the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands with approximately 46,500 Berths. The company was founded in 1966 and is headquartered in Miami, Florida.

FINANCIAL RATIOS  of  Norwegian Cruise Line Holdings (NCLH)

Valuation Ratios
P/E Ratio 19.9
Price to Sales 2.6
Price to Book 2.8
Price to Tangible Book
Price to Cash Flow 10.2
Price to Free Cash Flow 85.2
Growth Rates
Sales Growth Rate 12.2%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -2.7%
Cap. Spend. - 3 Yr. Gr. Rate 4.5%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 128.7%
Total Debt to Equity 141%
Interest Coverage 3
Management Effectiveness
Return On Assets 7.4%
Ret/ On Assets - 3 Yr. Avg. 6.4%
Return On Total Capital 6%
Ret/ On T. Cap. - 3 Yr. Avg. 4.9%
Return On Equity 15.2%
Return On Equity - 3 Yr. Avg. 12.6%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 41.5%
Gross Margin - 3 Yr. Avg. 39.4%
EBITDA Margin 28.5%
EBITDA Margin - 3 Yr. Avg. 27.3%
Operating Margin 19%
Oper. Margin - 3 Yr. Avg. 17.1%
Pre-Tax Margin 13.1%
Pre-Tax Margin - 3 Yr. Avg. 11.3%
Net Profit Margin 13%
Net Profit Margin - 3 Yr. Avg. 11.2%
Effective Tax Rate 1.1%
Eff/ Tax Rate - 3 Yr. Avg. 0.6%
Payout Ratio 0%

NCLH stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NCLH stock intrinsic value calculation we used $4874 million for the last fiscal year's total revenue generated by Norwegian Cruise Line Holdings. The default revenue input number comes from 2016 income statement of Norwegian Cruise Line Holdings. 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 NCLH stock valuation model: a) initial revenue growth rate of 8.5% 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 8.7%, whose default value for NCLH is calculated based on our internal credit rating of Norwegian Cruise Line Holdings, 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 Norwegian Cruise Line Holdings.
    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 NCLH stock the variable cost ratio is equal to 57.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1158 million in the base year in the intrinsic value calculation for NCLH 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 4.7% for Norwegian Cruise Line Holdings.

Corporate tax rate of 27% is the nominal tax rate for Norwegian Cruise Line Holdings. 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 NCLH 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 NCLH are equal to 219.6%.

Life of production assets of 27.1 years is the average useful life of capital assets used in Norwegian Cruise Line Holdings 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 NCLH is equal to -30.2%. 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 - $4538 million for Norwegian Cruise Line Holdings - 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 226.836 million for Norwegian Cruise Line Holdings 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 Norwegian Cruise Line Holdings at the current share price and the inputted number of shares is $12.6 billion.


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COMPANY NEWS

▶ Smooth sailing for cruise industry   [Jun-22-17 02:25PM  CNBC Videos]
▶ Alipay Payment Solution Introduced on Norwegian Joy   [Jun-21-17 11:00PM  PR Newswire]
▶ Cramer: This red-hot sector may cruise higher   [May-31-17 06:50PM  CNBC Videos]
▶ Is Royal Caribbean Too Expensive Now?   [May-10-17 04:36PM  Investopedia]
▶ Norwegian Cruise Line tops Street 1Q forecasts   [07:14AM  Associated Press]
▶ Norwegian Cruise Line announces 33 Miami-to-Cuba trips for 2018 cruise season   [Apr-04-17 12:45PM  American City Business Journals]
▶ What's Your Stock's Price Target?   [Mar-28-17 06:16PM  Zacks]
▶ Norwegian CEO: Business has been 'on fire' post-election   [Mar-14-17 01:47PM  CNBC Videos]
▶ [$$] Norwegian Cruise Line Stock Could Rise 25%   [Mar-11-17 12:36AM  Barrons.com]
▶ [$$] Norwegian Cruise Line Revenue Helped by Fleet Additions   [03:06PM  at The Wall Street Journal]
▶ Carnival Corporation in 2017 -- Risks vs. Potential Rewards   [Feb-10-17 12:21PM  at Motley Fool]
▶ Norwegian announces more cruises to Cuba from Miami   [Feb-07-17 03:10PM  at bizjournals.com]
▶ Norwegian Bliss to sail from Miami   [Jan-11-17 07:00AM  at bizjournals.com]
Stock chart of NCLH Financial statements of NCLH Annual reports of NCLH
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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