Intrinsic value of Royal Caribbean Cruises - RCL

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$106.60

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$106.60

 
Intrinsic value

$59.76

 
Up/down potential

-44%

 
Rating

sell

 
Value-price divergence* premium content

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

We calculate the intrinsic value of RCL 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 22.5

 

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, %
  2.37
  2.00
  2.30
  2.57
  2.81
  3.03
  3.23
  3.41
  3.57
  3.71
  3.84
  3.95
  4.06
  4.15
  4.24
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.64
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.83
  4.84
  4.86
Revenue, $m
  8,496
  8,666
  8,865
  9,093
  9,349
  9,632
  9,943
  10,282
  10,648
  11,043
  11,467
  11,921
  12,404
  12,920
  13,467
  14,048
  14,664
  15,315
  16,004
  16,732
  17,501
  18,313
  19,168
  20,070
  21,020
  22,021
  23,074
  24,183
  25,350
  26,578
  27,869
Variable operating expenses, $m
 
  7,755
  7,933
  8,136
  8,364
  8,617
  8,894
  9,196
  9,523
  9,875
  10,253
  10,629
  11,060
  11,519
  12,007
  12,525
  13,074
  13,655
  14,270
  14,919
  15,604
  16,328
  17,090
  17,894
  18,742
  19,634
  20,573
  21,562
  22,603
  23,697
  24,849
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
  7,019
  7,755
  7,933
  8,136
  8,364
  8,617
  8,894
  9,196
  9,523
  9,875
  10,253
  10,629
  11,060
  11,519
  12,007
  12,525
  13,074
  13,655
  14,270
  14,919
  15,604
  16,328
  17,090
  17,894
  18,742
  19,634
  20,573
  21,562
  22,603
  23,697
  24,849
Operating income, $m
  1,477
  910
  932
  957
  985
  1,015
  1,049
  1,086
  1,125
  1,168
  1,214
  1,292
  1,345
  1,400
  1,460
  1,523
  1,589
  1,660
  1,735
  1,814
  1,897
  1,985
  2,078
  2,175
  2,278
  2,387
  2,501
  2,621
  2,748
  2,881
  3,021
EBITDA, $m
  2,372
  1,826
  1,868
  1,916
  1,970
  2,030
  2,095
  2,167
  2,244
  2,327
  2,416
  2,512
  2,614
  2,722
  2,838
  2,960
  3,090
  3,227
  3,372
  3,526
  3,688
  3,859
  4,039
  4,229
  4,429
  4,640
  4,862
  5,096
  5,342
  5,600
  5,873
Interest expense (income), $m
  257
  313
  322
  333
  345
  359
  375
  391
  409
  429
  450
  473
  498
  524
  551
  581
  612
  645
  680
  717
  757
  798
  842
  888
  936
  987
  1,041
  1,098
  1,158
  1,221
  1,287
Earnings before tax, $m
  1,283
  597
  610
  624
  639
  656
  674
  694
  716
  739
  764
  819
  847
  877
  908
  942
  977
  1,015
  1,054
  1,096
  1,140
  1,187
  1,236
  1,288
  1,342
  1,399
  1,460
  1,523
  1,590
  1,660
  1,734
Tax expense, $m
  0
  161
  165
  168
  173
  177
  182
  187
  193
  200
  206
  221
  229
  237
  245
  254
  264
  274
  285
  296
  308
  320
  334
  348
  362
  378
  394
  411
  429
  448
  468
Net income, $m
  1,283
  436
  445
  455
  467
  479
  492
  507
  523
  539
  557
  598
  618
  640
  663
  687
  713
  741
  770
  800
  832
  866
  902
  940
  980
  1,022
  1,066
  1,112
  1,161
  1,212
  1,266

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  133
  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
  22,310
  22,626
  23,147
  23,742
  24,410
  25,150
  25,962
  26,846
  27,803
  28,834
  29,940
  31,124
  32,387
  33,732
  35,162
  36,679
  38,286
  39,987
  41,787
  43,688
  45,695
  47,813
  50,047
  52,402
  54,882
  57,495
  60,246
  63,142
  66,189
  69,394
  72,766
Adjusted assets (=assets-cash), $m
  22,177
  22,626
  23,147
  23,742
  24,410
  25,150
  25,962
  26,846
  27,803
  28,834
  29,940
  31,124
  32,387
  33,732
  35,162
  36,679
  38,286
  39,987
  41,787
  43,688
  45,695
  47,813
  50,047
  52,402
  54,882
  57,495
  60,246
  63,142
  66,189
  69,394
  72,766
Revenue / Adjusted assets
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
  0.383
Average production assets, $m
  10,081
  10,286
  10,523
  10,793
  11,097
  11,434
  11,803
  12,205
  12,640
  13,108
  13,612
  14,150
  14,724
  15,335
  15,985
  16,675
  17,406
  18,179
  18,997
  19,861
  20,774
  21,737
  22,752
  23,823
  24,951
  26,139
  27,389
  28,706
  30,091
  31,548
  33,081
Working capital, $m
  -3,694
  -2,652
  -2,713
  -2,782
  -2,861
  -2,947
  -3,043
  -3,146
  -3,258
  -3,379
  -3,509
  -3,648
  -3,796
  -3,953
  -4,121
  -4,299
  -4,487
  -4,686
  -4,897
  -5,120
  -5,355
  -5,604
  -5,865
  -6,141
  -6,432
  -6,738
  -7,061
  -7,400
  -7,757
  -8,133
  -8,528
Total debt, $m
  9,076
  9,214
  9,520
  9,871
  10,264
  10,700
  11,178
  11,699
  12,263
  12,870
  13,522
  14,219
  14,963
  15,755
  16,597
  17,491
  18,437
  19,440
  20,499
  21,619
  22,802
  24,049
  25,365
  26,752
  28,213
  29,752
  31,372
  33,077
  34,872
  36,760
  38,746
Total liabilities, $m
  13,189
  13,327
  13,633
  13,984
  14,377
  14,813
  15,291
  15,812
  16,376
  16,983
  17,635
  18,332
  19,076
  19,868
  20,710
  21,604
  22,550
  23,553
  24,612
  25,732
  26,915
  28,162
  29,478
  30,865
  32,326
  33,865
  35,485
  37,190
  38,985
  40,873
  42,859
Total equity, $m
  9,121
  9,299
  9,513
  9,758
  10,032
  10,336
  10,670
  11,034
  11,427
  11,851
  12,306
  12,792
  13,311
  13,864
  14,452
  15,075
  15,736
  16,435
  17,174
  17,956
  18,781
  19,651
  20,569
  21,537
  22,557
  23,631
  24,761
  25,951
  27,203
  28,521
  29,907
Total liabilities and equity, $m
  22,310
  22,626
  23,146
  23,742
  24,409
  25,149
  25,961
  26,846
  27,803
  28,834
  29,941
  31,124
  32,387
  33,732
  35,162
  36,679
  38,286
  39,988
  41,786
  43,688
  45,696
  47,813
  50,047
  52,402
  54,883
  57,496
  60,246
  63,141
  66,188
  69,394
  72,766
Debt-to-equity ratio
  0.995
  0.990
  1.000
  1.010
  1.020
  1.040
  1.050
  1.060
  1.070
  1.090
  1.100
  1.110
  1.120
  1.140
  1.150
  1.160
  1.170
  1.180
  1.190
  1.200
  1.210
  1.220
  1.230
  1.240
  1.250
  1.260
  1.270
  1.270
  1.280
  1.290
  1.300
Adjusted equity ratio
  0.405
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411
  0.411

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  1,283
  436
  445
  455
  467
  479
  492
  507
  523
  539
  557
  598
  618
  640
  663
  687
  713
  741
  770
  800
  832
  866
  902
  940
  980
  1,022
  1,066
  1,112
  1,161
  1,212
  1,266
Depreciation, amort., depletion, $m
  895
  916
  936
  959
  985
  1,014
  1,046
  1,081
  1,118
  1,159
  1,202
  1,220
  1,269
  1,322
  1,378
  1,437
  1,500
  1,567
  1,638
  1,712
  1,791
  1,874
  1,961
  2,054
  2,151
  2,253
  2,361
  2,475
  2,594
  2,720
  2,852
Funds from operations, $m
  2,850
  1,352
  1,381
  1,414
  1,452
  1,493
  1,539
  1,588
  1,641
  1,698
  1,760
  1,818
  1,888
  1,962
  2,041
  2,125
  2,214
  2,308
  2,407
  2,512
  2,623
  2,740
  2,864
  2,994
  3,131
  3,275
  3,427
  3,587
  3,755
  3,932
  4,118
Change in working capital, $m
  333
  -52
  -61
  -70
  -78
  -87
  -95
  -104
  -112
  -121
  -130
  -139
  -148
  -158
  -168
  -178
  -188
  -199
  -211
  -223
  -235
  -248
  -262
  -276
  -291
  -306
  -322
  -339
  -357
  -376
  -395
Cash from operations, $m
  2,517
  11,485
  1,442
  1,484
  1,530
  1,580
  1,634
  1,691
  1,753
  1,819
  1,889
  1,956
  2,036
  2,120
  2,209
  2,303
  2,402
  2,507
  2,618
  2,735
  2,859
  2,989
  3,125
  3,270
  3,421
  3,581
  3,749
  3,926
  4,112
  4,307
  4,513
Maintenance CAPEX, $m
  0
  -869
  -887
  -907
  -930
  -957
  -986
  -1,017
  -1,052
  -1,090
  -1,130
  -1,173
  -1,220
  -1,269
  -1,322
  -1,378
  -1,437
  -1,500
  -1,567
  -1,638
  -1,712
  -1,791
  -1,874
  -1,961
  -2,054
  -2,151
  -2,253
  -2,361
  -2,475
  -2,594
  -2,720
New CAPEX, $m
  -2,494
  -205
  -237
  -270
  -304
  -336
  -369
  -402
  -435
  -469
  -503
  -538
  -574
  -611
  -650
  -690
  -731
  -774
  -818
  -864
  -913
  -963
  -1,015
  -1,070
  -1,128
  -1,188
  -1,251
  -1,316
  -1,385
  -1,457
  -1,533
Cash from investing activities, $m
  -2,725
  -1,074
  -1,124
  -1,177
  -1,234
  -1,293
  -1,355
  -1,419
  -1,487
  -1,559
  -1,633
  -1,711
  -1,794
  -1,880
  -1,972
  -2,068
  -2,168
  -2,274
  -2,385
  -2,502
  -2,625
  -2,754
  -2,889
  -3,031
  -3,182
  -3,339
  -3,504
  -3,677
  -3,860
  -4,051
  -4,253
Free cash flow, $m
  -208
  10,410
  319
  307
  296
  287
  279
  272
  266
  261
  256
  245
  241
  239
  237
  235
  234
  233
  233
  233
  234
  235
  236
  238
  240
  242
  245
  248
  252
  256
  260
Issuance/(repayment) of debt, $m
  973
  271
  307
  350
  393
  436
  478
  521
  564
  607
  652
  697
  744
  792
  842
  893
  947
  1,002
  1,060
  1,120
  1,182
  1,248
  1,316
  1,387
  1,461
  1,539
  1,620
  1,705
  1,795
  1,888
  1,986
Issuance/(repurchase) of shares, $m
  -298
  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  
  590
  271
  307
  350
  393
  436
  478
  521
  564
  607
  652
  697
  744
  792
  842
  893
  947
  1,002
  1,060
  1,120
  1,182
  1,248
  1,316
  1,387
  1,461
  1,539
  1,620
  1,705
  1,795
  1,888
  1,986
Total cash flow (excl. dividends), $m
  357
  10,681
  625
  657
  689
  723
  757
  793
  830
  868
  908
  942
  985
  1,031
  1,079
  1,129
  1,181
  1,235
  1,293
  1,353
  1,416
  1,482
  1,552
  1,625
  1,701
  1,781
  1,865
  1,954
  2,047
  2,144
  2,246
Retained Cash Flow (-), $m
  -1,058
  -178
  -214
  -244
  -274
  -304
  -334
  -363
  -393
  -424
  -455
  -487
  -519
  -553
  -587
  -623
  -661
  -699
  -740
  -781
  -825
  -871
  -918
  -968
  -1,020
  -1,074
  -1,131
  -1,190
  -1,252
  -1,317
  -1,386
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
 
  10,503
  411
  412
  415
  419
  424
  429
  436
  444
  453
  455
  466
  478
  491
  505
  520
  536
  553
  572
  591
  612
  634
  657
  681
  707
  735
  764
  794
  827
  861
Discount rate, %
 
  7.60
  7.98
  8.38
  8.80
  9.24
  9.70
  10.18
  10.69
  11.23
  11.79
  12.38
  13.00
  13.65
  14.33
  15.05
  15.80
  16.59
  17.42
  18.29
  19.20
  20.17
  21.17
  22.23
  23.34
  24.51
  25.74
  27.02
  28.37
  29.79
  31.28
PV of cash for distribution, $m
 
  9,761
  353
  324
  296
  269
  243
  218
  194
  170
  149
  126
  108
  91
  75
  62
  50
  39
  31
  23
  18
  13
  9
  6
  4
  3
  2
  1
  1
  0
  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

Royal Caribbean Cruises Ltd. operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises brand names. The Royal Caribbean International brand provides a range of itineraries ranging from 2 to 24 nights with options for onboard dining, entertainment, and other onboard activities to various destinations. The Celebrity Cruises brand offers itineraries ranging from 2 to 18 nights to various destinations; and operates onboard upscale ships that offer accommodations, fine dining, personalized services, and spa facilities. The Azamara Club Cruises brand offers cruise itineraries ranging from 3 to 21 nights that serve the up-market segment of the North American, the United Kingdom, and Australian markets. The company also operates ships under the partner brands, such as TUI Cruises, Pullmantur, and SkySea Cruises. As of December 31, 2016, the company operated 49 ships with itineraries ranging from 2 to 24 nights on approximately 535 destinations worldwide. Royal Caribbean Cruises Ltd. was founded in 1968 and is headquartered in Miami, Florida.

FINANCIAL RATIOS  of  Royal Caribbean Cruises (RCL)

Valuation Ratios
P/E Ratio 17.8
Price to Sales 2.7
Price to Book 2.5
Price to Tangible Book
Price to Cash Flow 9.1
Price to Free Cash Flow 994.6
Growth Rates
Sales Growth Rate 2.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 54.6%
Cap. Spend. - 3 Yr. Gr. Rate 26.7%
Financial Strength
Quick Ratio 0
Current Ratio 0
LT Debt to Equity 86.1%
Total Debt to Equity 99.5%
Interest Coverage 6
Management Effectiveness
Return On Assets 7.1%
Ret/ On Assets - 3 Yr. Avg. 5.6%
Return On Total Capital 7.4%
Ret/ On T. Cap. - 3 Yr. Avg. 5.3%
Return On Equity 14.9%
Return On Equity - 3 Yr. Avg. 10.7%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 41%
Gross Margin - 3 Yr. Avg. 37.9%
EBITDA Margin 28.7%
EBITDA Margin - 3 Yr. Avg. 24%
Operating Margin 17.4%
Oper. Margin - 3 Yr. Avg. 13.2%
Pre-Tax Margin 15.1%
Pre-Tax Margin - 3 Yr. Avg. 10.9%
Net Profit Margin 15.1%
Net Profit Margin - 3 Yr. Avg. 10.9%
Effective Tax Rate 0%
Eff/ Tax Rate - 3 Yr. Avg. 0%
Payout Ratio 27%

RCL stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the RCL stock intrinsic value calculation we used $8496 million for the last fiscal year's total revenue generated by Royal Caribbean Cruises. The default revenue input number comes from 2016 income statement of Royal Caribbean Cruises. 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 RCL stock valuation model: a) initial revenue growth rate of 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 7.6%, whose default value for RCL is calculated based on our internal credit rating of Royal Caribbean Cruises, 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 Royal Caribbean Cruises.
    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 RCL stock the variable cost ratio is equal to 89.5%.

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 RCL 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 Royal Caribbean Cruises.

Corporate tax rate of 27% is the nominal tax rate for Royal Caribbean Cruises. 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 RCL 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 RCL are equal to 118.7%.

Life of production assets of 11.6 years is the average useful life of capital assets used in Royal Caribbean Cruises 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 RCL is equal to -30.6%. 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 - $9121 million for Royal Caribbean Cruises - 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 211.497 million for Royal Caribbean Cruises 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 Royal Caribbean Cruises at the current share price and the inputted number of shares is $22.5 billion.


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COMPANY NEWS

▶ Royal Caribbean beats 1Q profit forecasts   [08:08AM  Associated Press]
▶ Cruise line partners with nonprofit on first ship in 10 years   [Apr-27-17 03:00PM  American City Business Journals]
▶ Top Ranked Value Stocks to Buy for April 25th   [Apr-25-17 10:16AM  Zacks]
▶ Raising Credit Ratings for Top Cruise Lines   [Apr-10-17 06:33AM  Morningstar]
▶ Vetting Rules Raise Questions for Leisure Investors   [Apr-04-17 11:21AM  The Wall Street Journal]
▶ Azamara Club Cruises Announces 2019 Voyages   [Mar-29-17 12:00PM  PR Newswire]
▶ Taking Sides On The Retail Debate   [11:32AM  at Forbes]
▶ Where consumers are really spending   [Mar-21-17 05:29PM  CNBC Videos]
▶ Celebrity Cruises offers first look at Celebrity Edge (Photos)   [Mar-14-17 01:00PM  at bizjournals.com]
▶ [$$] Norwegian Cruise Line Stock Could Rise 25%   [Mar-11-17 12:36AM  at Barrons.com]
▶ Carnival Corporation in 2017 -- Risks vs. Potential Rewards   [Feb-10-17 12:21PM  at Motley Fool]
▶ Royal Caribbean Cruises Ltd. Declares Dividend   [Feb-07-17 04:26PM  PR Newswire]
▶ Why Royal Caribbean Cruises Ltd. Stock Rose 14% in January   [Feb-06-17 10:30AM  at Motley Fool]
▶ The only healthcare stock Jim Cramer will go near   [Jan-31-17 07:28PM  at CNBC]
Stock chart of RCL Financial statements of RCL
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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