Intrinsic value of Carnival - CCL

Previous Close

$60.58

  Intrinsic Value

$6.71

stock screener

  Rating & Target

str. sell

-89%

Previous close

$60.58

 
Intrinsic value

$6.71

 
Up/down potential

-89%

 
Rating

str. sell

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

Revenue (in 2017), $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 45.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   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, %
  6.80
  6.62
  6.46
  6.31
  6.18
  6.06
  5.96
  5.86
  5.77
  5.70
  5.63
  5.56
  5.51
  5.46
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
  5.20
  5.18
  5.16
  5.14
  5.13
  5.12
  5.10
  5.09
  5.08
Revenue, $m
  18,701
  19,939
  21,226
  22,566
  23,961
  25,414
  26,927
  28,506
  30,152
  31,870
  33,663
  35,537
  37,494
  39,540
  41,680
  43,919
  46,261
  48,713
  51,280
  53,969
  56,785
  59,736
  62,829
  66,071
  69,469
  73,033
  76,769
  80,688
  84,798
  89,110
Variable operating expenses, $m
  15,175
  16,152
  17,169
  18,226
  19,327
  20,473
  21,668
  22,913
  24,213
  25,568
  26,567
  28,045
  29,590
  31,205
  32,894
  34,661
  36,509
  38,444
  40,470
  42,592
  44,815
  47,144
  49,585
  52,143
  54,825
  57,637
  60,586
  63,679
  66,923
  70,326
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
  15,175
  16,152
  17,169
  18,226
  19,327
  20,473
  21,668
  22,913
  24,213
  25,568
  26,567
  28,045
  29,590
  31,205
  32,894
  34,661
  36,509
  38,444
  40,470
  42,592
  44,815
  47,144
  49,585
  52,143
  54,825
  57,637
  60,586
  63,679
  66,923
  70,326
Operating income, $m
  3,525
  3,786
  4,058
  4,340
  4,634
  4,940
  5,260
  5,592
  5,939
  6,301
  7,096
  7,491
  7,904
  8,335
  8,786
  9,258
  9,752
  10,269
  10,810
  11,377
  11,970
  12,592
  13,244
  13,928
  14,644
  15,395
  16,183
  17,009
  17,875
  18,784
EBITDA, $m
  7,959
  8,486
  9,034
  9,604
  10,198
  10,816
  11,460
  12,132
  12,833
  13,564
  14,327
  15,124
  15,957
  16,828
  17,739
  18,692
  19,689
  20,732
  21,825
  22,969
  24,168
  25,424
  26,740
  28,120
  29,566
  31,082
  32,673
  34,341
  36,090
  37,925
Interest expense (income), $m
  211
  497
  558
  621
  687
  755
  827
  901
  978
  1,059
  1,143
  1,231
  1,323
  1,418
  1,518
  1,623
  1,732
  1,847
  1,966
  2,092
  2,223
  2,360
  2,504
  2,655
  2,813
  2,979
  3,152
  3,335
  3,525
  3,726
  3,936
Earnings before tax, $m
  3,029
  3,228
  3,437
  3,653
  3,879
  4,114
  4,359
  4,614
  4,880
  5,158
  5,865
  6,168
  6,485
  6,817
  7,163
  7,526
  7,905
  8,302
  8,718
  9,154
  9,610
  10,088
  10,589
  11,115
  11,665
  12,243
  12,848
  13,483
  14,150
  14,848
Tax expense, $m
  818
  872
  928
  986
  1,047
  1,111
  1,177
  1,246
  1,318
  1,393
  1,584
  1,665
  1,751
  1,841
  1,934
  2,032
  2,134
  2,242
  2,354
  2,471
  2,595
  2,724
  2,859
  3,001
  3,150
  3,306
  3,469
  3,641
  3,820
  4,009
Net income, $m
  2,211
  2,357
  2,509
  2,667
  2,832
  3,003
  3,182
  3,368
  3,563
  3,766
  4,282
  4,503
  4,734
  4,976
  5,229
  5,494
  5,771
  6,061
  6,364
  6,682
  7,015
  7,364
  7,730
  8,114
  8,516
  8,937
  9,379
  9,843
  10,329
  10,839

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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 assets, $m
  43,591
  46,477
  49,479
  52,602
  55,853
  59,239
  62,768
  66,447
  70,284
  74,288
  78,469
  82,836
  87,399
  92,168
  97,156
  102,374
  107,834
  113,550
  119,534
  125,801
  132,367
  139,246
  146,455
  154,011
  161,933
  170,239
  178,949
  188,084
  197,665
  207,716
Adjusted assets (=assets-cash), $m
  43,591
  46,477
  49,479
  52,602
  55,853
  59,239
  62,768
  66,447
  70,284
  74,288
  78,469
  82,836
  87,399
  92,168
  97,156
  102,374
  107,834
  113,550
  119,534
  125,801
  132,367
  139,246
  146,455
  154,011
  161,933
  170,239
  178,949
  188,084
  197,665
  207,716
Revenue / Adjusted assets
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
  0.429
Average production assets, $m
  40,169
  42,828
  45,594
  48,472
  51,468
  54,589
  57,840
  61,230
  64,766
  68,456
  72,309
  76,332
  80,537
  84,932
  89,529
  94,337
  99,369
  104,635
  110,150
  115,925
  121,975
  128,314
  134,957
  141,920
  149,220
  156,874
  164,900
  173,318
  182,147
  191,409
Working capital, $m
  -393
  -419
  -446
  -474
  -503
  -534
  -565
  -599
  -633
  -669
  -707
  -746
  -787
  -830
  -875
  -922
  -971
  -1,023
  -1,077
  -1,133
  -1,192
  -1,254
  -1,319
  -1,387
  -1,459
  -1,534
  -1,612
  -1,694
  -1,781
  -1,871
Total debt, $m
  10,331
  11,503
  12,721
  13,989
  15,309
  16,684
  18,117
  19,610
  21,168
  22,794
  24,491
  26,264
  28,117
  30,053
  32,078
  34,197
  36,414
  38,734
  41,164
  43,708
  46,374
  49,167
  52,094
  55,162
  58,378
  61,750
  65,286
  68,995
  72,885
  76,966
Total liabilities, $m
  17,698
  18,870
  20,088
  21,356
  22,676
  24,051
  25,484
  26,977
  28,535
  30,161
  31,858
  33,631
  35,484
  37,420
  39,445
  41,564
  43,781
  46,101
  48,531
  51,075
  53,741
  56,534
  59,461
  62,529
  65,745
  69,117
  72,653
  76,362
  80,252
  84,333
Total equity, $m
  25,893
  27,607
  29,390
  31,245
  33,177
  35,188
  37,284
  39,469
  41,749
  44,127
  46,611
  49,204
  51,915
  54,748
  57,711
  60,810
  64,054
  67,449
  71,003
  74,726
  78,626
  82,712
  86,994
  91,483
  96,188
  101,122
  106,296
  111,722
  117,413
  123,383
Total liabilities and equity, $m
  43,591
  46,477
  49,478
  52,601
  55,853
  59,239
  62,768
  66,446
  70,284
  74,288
  78,469
  82,835
  87,399
  92,168
  97,156
  102,374
  107,835
  113,550
  119,534
  125,801
  132,367
  139,246
  146,455
  154,012
  161,933
  170,239
  178,949
  188,084
  197,665
  207,716
Debt-to-equity ratio
  0.400
  0.420
  0.430
  0.450
  0.460
  0.470
  0.490
  0.500
  0.510
  0.520
  0.530
  0.530
  0.540
  0.550
  0.560
  0.560
  0.570
  0.570
  0.580
  0.580
  0.590
  0.590
  0.600
  0.600
  0.610
  0.610
  0.610
  0.620
  0.620
  0.620
Adjusted equity ratio
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594
  0.594

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,211
  2,357
  2,509
  2,667
  2,832
  3,003
  3,182
  3,368
  3,563
  3,766
  4,282
  4,503
  4,734
  4,976
  5,229
  5,494
  5,771
  6,061
  6,364
  6,682
  7,015
  7,364
  7,730
  8,114
  8,516
  8,937
  9,379
  9,843
  10,329
  10,839
Depreciation, amort., depletion, $m
  4,434
  4,700
  4,976
  5,264
  5,564
  5,876
  6,201
  6,540
  6,893
  7,262
  7,231
  7,633
  8,054
  8,493
  8,953
  9,434
  9,937
  10,464
  11,015
  11,593
  12,197
  12,831
  13,496
  14,192
  14,922
  15,687
  16,490
  17,332
  18,215
  19,141
Funds from operations, $m
  6,645
  7,056
  7,485
  7,931
  8,395
  8,879
  9,383
  9,908
  10,456
  11,028
  11,512
  12,136
  12,788
  13,469
  14,182
  14,927
  15,708
  16,524
  17,379
  18,275
  19,213
  20,196
  21,226
  22,306
  23,438
  24,625
  25,869
  27,175
  28,544
  29,980
Change in working capital, $m
  -25
  -26
  -27
  -28
  -29
  -31
  -32
  -33
  -35
  -36
  -38
  -39
  -41
  -43
  -45
  -47
  -49
  -51
  -54
  -56
  -59
  -62
  -65
  -68
  -71
  -75
  -78
  -82
  -86
  -91
Cash from operations, $m
  6,670
  7,082
  7,512
  7,959
  8,424
  8,909
  9,414
  9,941
  10,490
  11,064
  11,550
  12,176
  12,829
  13,512
  14,227
  14,974
  15,757
  16,576
  17,433
  18,331
  19,272
  20,258
  21,291
  22,374
  23,509
  24,699
  25,948
  27,257
  28,630
  30,071
Maintenance CAPEX, $m
  -3,761
  -4,017
  -4,283
  -4,559
  -4,847
  -5,147
  -5,459
  -5,784
  -6,123
  -6,477
  -6,846
  -7,231
  -7,633
  -8,054
  -8,493
  -8,953
  -9,434
  -9,937
  -10,464
  -11,015
  -11,593
  -12,197
  -12,831
  -13,496
  -14,192
  -14,922
  -15,687
  -16,490
  -17,332
  -18,215
New CAPEX, $m
  -2,564
  -2,659
  -2,766
  -2,878
  -2,996
  -3,120
  -3,252
  -3,390
  -3,536
  -3,690
  -3,852
  -4,024
  -4,205
  -4,395
  -4,596
  -4,808
  -5,032
  -5,267
  -5,514
  -5,775
  -6,050
  -6,339
  -6,643
  -6,963
  -7,300
  -7,654
  -8,026
  -8,418
  -8,829
  -9,262
Cash from investing activities, $m
  -6,325
  -6,676
  -7,049
  -7,437
  -7,843
  -8,267
  -8,711
  -9,174
  -9,659
  -10,167
  -10,698
  -11,255
  -11,838
  -12,449
  -13,089
  -13,761
  -14,466
  -15,204
  -15,978
  -16,790
  -17,643
  -18,536
  -19,474
  -20,459
  -21,492
  -22,576
  -23,713
  -24,908
  -26,161
  -27,477
Free cash flow, $m
  346
  406
  463
  522
  581
  642
  704
  767
  832
  897
  852
  921
  991
  1,063
  1,137
  1,213
  1,292
  1,372
  1,455
  1,541
  1,629
  1,721
  1,816
  1,915
  2,017
  2,124
  2,234
  2,349
  2,469
  2,594
Issuance/(repayment) of debt, $m
  1,136
  1,172
  1,219
  1,268
  1,320
  1,375
  1,433
  1,494
  1,558
  1,626
  1,697
  1,773
  1,853
  1,937
  2,025
  2,118
  2,217
  2,320
  2,430
  2,545
  2,666
  2,793
  2,927
  3,068
  3,216
  3,372
  3,536
  3,709
  3,890
  4,081
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  1,136
  1,172
  1,219
  1,268
  1,320
  1,375
  1,433
  1,494
  1,558
  1,626
  1,697
  1,773
  1,853
  1,937
  2,025
  2,118
  2,217
  2,320
  2,430
  2,545
  2,666
  2,793
  2,927
  3,068
  3,216
  3,372
  3,536
  3,709
  3,890
  4,081
Total cash flow (excl. dividends), $m
  1,482
  1,578
  1,682
  1,790
  1,901
  2,017
  2,136
  2,261
  2,389
  2,523
  2,549
  2,694
  2,844
  3,000
  3,162
  3,332
  3,508
  3,693
  3,885
  4,085
  4,295
  4,514
  4,743
  4,983
  5,233
  5,496
  5,770
  6,058
  6,359
  6,675
Retained Cash Flow (-), $m
  -1,677
  -1,714
  -1,783
  -1,855
  -1,931
  -2,011
  -2,096
  -2,185
  -2,279
  -2,379
  -2,483
  -2,594
  -2,710
  -2,833
  -2,963
  -3,099
  -3,243
  -3,395
  -3,555
  -3,723
  -3,900
  -4,086
  -4,282
  -4,488
  -4,705
  -4,934
  -5,174
  -5,426
  -5,691
  -5,970
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
  70
  75
  80
  85
  90
  96
  102
  108
  114
  121
  127
  135
  142
  150
  158
  167
  176
  185
  195
  205
  216
  227
  239
  251
  264
  278
  292
  307
  323
  339
Cash available for distribution, $m
  -196
  -136
  -101
  -66
  -30
  5
  40
  75
  110
  145
  66
  100
  133
  167
  200
  232
  265
  298
  330
  363
  395
  428
  461
  494
  528
  562
  597
  632
  668
  705
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  -188
  -125
  -88
  -54
  -23
  4
  27
  47
  63
  76
  31
  43
  51
  56
  59
  59
  58
  55
  51
  46
  41
  36
  30
  25
  21
  16
  13
  10
  7
  5
Current shareholders' claim on cash, %
  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 16.7
Price to Sales 2.5
Price to Book 1.8
Price to Tangible Book
Price to Cash Flow 8.5
Price to Free Cash Flow 21
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 6.8% 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 4.3%, 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 5.4% 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 0.4%.

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 214.8%.

Life of production assets of 10 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 -2.1%. 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 747 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 $45.3 billion.

RELATED COMPANIES Price Int.Val. Rating
NCLH Norwegian Crui 52.49 5.52  str.sell
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COMPANY NEWS

▶ Carnival Corp. Is Ready For a Short Cruise Higher   [Aug-14-18 12:45PM  TheStreet.com]
▶ A Piper Jaffray Analyst's Travel Stock Pick, Pan   [Aug-06-18 04:18PM  Benzinga]
▶ Port Tampa Bay cruising to capture more of Cuba, hit 1M passengers   [Aug-03-18 05:00AM  American City Business Journals]
▶ Carnival Cruise Line to invest nearly $200M in ship   [Aug-01-18 06:34AM  American City Business Journals]
▶ 3 High-Yield Stocks Still Worth Buying   [Jul-31-18 02:46PM  Motley Fool]
▶ 7 Rebound Stocks Coming Back From the Dead   [Jul-27-18 02:54PM  InvestorPlace]
▶ Cunard Releases Inspiring Transatlantic Crossing Video   [Jul-25-18 10:07AM  PR Newswire]
▶ Cunard Announces 10-Day Sale   [Jul-24-18 10:07AM  PR Newswire]
▶ 3 Bearish Options Trades to Hedge Your Bets   [Jul-23-18 01:22PM  InvestorPlace]
▶ Dallas firm turns to NAACP with new fund to track inclusive companies   [12:34PM  American City Business Journals]
▶ 3 Top Dividend Stocks to Buy in July   [09:35AM  Motley Fool]
▶ [$$] Stronger Dollar Weighs On Profits   [Jul-17-18 08:11PM  The Wall Street Journal]
▶ 5 Investing Podcasts Perfect For Your Beach Weekend   [Jul-14-18 11:06AM  TheStreet.com]
▶ 3 Top Stocks With High Dividend Yields   [11:55AM  Motley Fool]
▶ Argus: Carnival's Near-Term Outlook Is Weak   [Jul-06-18 11:59AM  Benzinga]
▶ 3 Things Carnival Wants You to Know   [Jul-02-18 05:00PM  Motley Fool]
▶ [$$] Charting the Market   [Jun-30-18 12:01AM  Barrons.com]
▶ Cunard Announces 4th of July Sale   [10:07AM  PR Newswire]
▶ Carnival Posts Strong Growth and Boosts Its 2018 Outlook   [Jun-26-18 06:00PM  Motley Fool]
▶ Company News For Jun 26, 2018   [10:21AM  Zacks]
▶ Rough Seas For Carnival Charts   [10:10AM  TheStreet.com]
▶ Carnival Sees Rough Waters Ahead   [Jun-25-18 06:39PM  Motley Fool]
▶ What Happened in the Stock Market Today   [05:01PM  Motley Fool]
▶ Carnival shares sink on outlook, cost concerns   [10:32AM  Associated Press]
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