Intrinsic value of Carnival Corporation - CCL

Previous Close

$45.72

  Intrinsic Value

$26.99

stock screener

  Rating & Target

sell

-41%

Previous close

$45.72

 
Intrinsic value

$26.99

 
Up/down potential

-41%

 
Rating

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 0001), $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 32.9

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.60
  4.64
  4.68
  4.71
  4.74
  4.76
  4.79
  4.81
  4.83
  4.85
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.93
  4.93
  4.94
  4.95
  4.95
  4.96
  4.96
  4.96
  4.97
  4.97
  4.97
  4.98
  4.98
  4.98
Revenue, $m
  19,750
  20,666
  21,632
  22,651
  23,724
  24,854
  26,044
  27,296
  28,614
  30,000
  31,459
  32,992
  34,604
  36,299
  38,081
  39,954
  41,922
  43,990
  46,163
  48,446
  50,845
  53,365
  56,012
  58,793
  61,714
  64,782
  68,004
  71,389
  74,943
  78,676
Variable operating expenses, $m
  12,305
  12,857
  13,439
  14,052
  14,699
  15,379
  16,096
  16,850
  17,644
  18,479
  18,947
  19,870
  20,842
  21,862
  22,936
  24,063
  25,249
  26,494
  27,803
  29,178
  30,623
  32,141
  33,735
  35,410
  37,169
  39,017
  40,958
  42,996
  45,137
  47,385
Fixed operating expenses, $m
  3,949
  4,036
  4,125
  4,215
  4,308
  4,403
  4,500
  4,599
  4,700
  4,803
  4,909
  5,017
  5,127
  5,240
  5,356
  5,473
  5,594
  5,717
  5,843
  5,971
  6,102
  6,237
  6,374
  6,514
  6,657
  6,804
  6,954
  7,107
  7,263
  7,423
Total operating expenses, $m
  16,254
  16,893
  17,564
  18,267
  19,007
  19,782
  20,596
  21,449
  22,344
  23,282
  23,856
  24,887
  25,969
  27,102
  28,292
  29,536
  30,843
  32,211
  33,646
  35,149
  36,725
  38,378
  40,109
  41,924
  43,826
  45,821
  47,912
  50,103
  52,400
  54,808
Operating income, $m
  3,496
  3,773
  4,069
  4,383
  4,717
  5,072
  5,448
  5,847
  6,270
  6,718
  7,603
  8,105
  8,635
  9,197
  9,790
  10,417
  11,079
  11,779
  12,517
  13,297
  14,120
  14,988
  15,903
  16,869
  17,887
  18,961
  20,093
  21,286
  22,544
  23,868
EBITDA, $m
  5,908
  6,279
  6,672
  7,090
  7,533
  8,002
  8,499
  9,025
  9,582
  10,170
  10,793
  11,450
  12,144
  12,878
  13,652
  14,468
  15,330
  16,239
  17,198
  18,209
  19,275
  20,399
  21,583
  22,831
  24,145
  25,530
  26,989
  28,525
  30,143
  31,846
Interest expense (income), $m
  211
  557
  604
  651
  701
  753
  808
  866
  928
  992
  1,060
  1,131
  1,206
  1,285
  1,368
  1,455
  1,547
  1,643
  1,745
  1,851
  1,963
  2,080
  2,204
  2,333
  2,470
  2,613
  2,763
  2,921
  3,087
  3,261
  3,444
Earnings before tax, $m
  2,938
  3,169
  3,418
  3,682
  3,964
  4,264
  4,582
  4,920
  5,278
  5,658
  6,471
  6,898
  7,350
  7,829
  8,335
  8,870
  9,436
  10,034
  10,666
  11,334
  12,039
  12,784
  13,570
  14,399
  15,275
  16,198
  17,172
  18,200
  19,283
  20,425
Tax expense, $m
  793
  856
  923
  994
  1,070
  1,151
  1,237
  1,328
  1,425
  1,528
  1,747
  1,863
  1,985
  2,114
  2,250
  2,395
  2,548
  2,709
  2,880
  3,060
  3,251
  3,452
  3,664
  3,888
  4,124
  4,374
  4,637
  4,914
  5,206
  5,515
Net income, $m
  2,145
  2,314
  2,495
  2,688
  2,894
  3,112
  3,345
  3,591
  3,853
  4,131
  4,724
  5,036
  5,366
  5,715
  6,084
  6,475
  6,888
  7,325
  7,786
  8,274
  8,789
  9,332
  9,906
  10,512
  11,151
  11,825
  12,536
  13,286
  14,076
  14,910

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
  44,381
  46,440
  48,612
  50,901
  53,312
  55,852
  58,526
  61,340
  64,301
  67,417
  70,694
  74,139
  77,763
  81,572
  85,576
  89,784
  94,207
  98,854
  103,737
  108,868
  114,259
  119,922
  125,871
  132,119
  138,683
  145,578
  152,819
  160,424
  168,412
  176,801
Adjusted assets (=assets-cash), $m
  44,381
  46,440
  48,612
  50,901
  53,312
  55,852
  58,526
  61,340
  64,301
  67,417
  70,694
  74,139
  77,763
  81,572
  85,576
  89,784
  94,207
  98,854
  103,737
  108,868
  114,259
  119,922
  125,871
  132,119
  138,683
  145,578
  152,819
  160,424
  168,412
  176,801
Revenue / Adjusted assets
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
  0.445
Average production assets, $m
  38,650
  40,443
  42,334
  44,328
  46,428
  48,639
  50,968
  53,419
  55,998
  58,711
  61,565
  64,565
  67,721
  71,038
  74,525
  78,190
  82,041
  86,089
  90,341
  94,810
  99,504
  104,436
  109,616
  115,058
  120,774
  126,778
  133,085
  139,708
  146,664
  153,970
Working capital, $m
  -5,787
  -6,055
  -6,338
  -6,637
  -6,951
  -7,282
  -7,631
  -7,998
  -8,384
  -8,790
  -9,217
  -9,667
  -10,139
  -10,636
  -11,158
  -11,706
  -12,283
  -12,889
  -13,526
  -14,195
  -14,898
  -15,636
  -16,412
  -17,226
  -18,082
  -18,981
  -19,925
  -20,917
  -21,958
  -23,052
Total debt, $m
  11,183
  12,056
  12,976
  13,947
  14,969
  16,046
  17,180
  18,373
  19,629
  20,950
  22,339
  23,800
  25,336
  26,951
  28,649
  30,433
  32,309
  34,279
  36,350
  38,525
  40,811
  43,212
  45,734
  48,384
  51,167
  54,090
  57,160
  60,385
  63,772
  67,329
Total liabilities, $m
  18,818
  19,691
  20,611
  21,582
  22,604
  23,681
  24,815
  26,008
  27,264
  28,585
  29,974
  31,435
  32,971
  34,586
  36,284
  38,068
  39,944
  41,914
  43,985
  46,160
  48,446
  50,847
  53,369
  56,019
  58,802
  61,725
  64,795
  68,020
  71,407
  74,964
Total equity, $m
  25,563
  26,750
  28,000
  29,319
  30,708
  32,171
  33,711
  35,332
  37,038
  38,832
  40,719
  42,704
  44,791
  46,985
  49,292
  51,716
  54,263
  56,940
  59,753
  62,708
  65,813
  69,075
  72,501
  76,101
  79,882
  83,853
  88,024
  92,404
  97,005
  101,837
Total liabilities and equity, $m
  44,381
  46,441
  48,611
  50,901
  53,312
  55,852
  58,526
  61,340
  64,302
  67,417
  70,693
  74,139
  77,762
  81,571
  85,576
  89,784
  94,207
  98,854
  103,738
  108,868
  114,259
  119,922
  125,870
  132,120
  138,684
  145,578
  152,819
  160,424
  168,412
  176,801
Debt-to-equity ratio
  0.440
  0.450
  0.460
  0.480
  0.490
  0.500
  0.510
  0.520
  0.530
  0.540
  0.550
  0.560
  0.570
  0.570
  0.580
  0.590
  0.600
  0.600
  0.610
  0.610
  0.620
  0.630
  0.630
  0.640
  0.640
  0.650
  0.650
  0.650
  0.660
  0.660
Adjusted equity ratio
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576
  0.576

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,145
  2,314
  2,495
  2,688
  2,894
  3,112
  3,345
  3,591
  3,853
  4,131
  4,724
  5,036
  5,366
  5,715
  6,084
  6,475
  6,888
  7,325
  7,786
  8,274
  8,789
  9,332
  9,906
  10,512
  11,151
  11,825
  12,536
  13,286
  14,076
  14,910
Depreciation, amort., depletion, $m
  2,413
  2,506
  2,604
  2,707
  2,816
  2,930
  3,051
  3,178
  3,312
  3,452
  3,190
  3,345
  3,509
  3,681
  3,861
  4,051
  4,251
  4,461
  4,681
  4,912
  5,156
  5,411
  5,680
  5,962
  6,258
  6,569
  6,896
  7,239
  7,599
  7,978
Funds from operations, $m
  4,558
  4,819
  5,099
  5,395
  5,709
  6,043
  6,396
  6,769
  7,165
  7,583
  7,914
  8,381
  8,875
  9,396
  9,946
  10,526
  11,139
  11,786
  12,467
  13,186
  13,944
  14,743
  15,586
  16,473
  17,408
  18,394
  19,431
  20,524
  21,676
  22,888
Change in working capital, $m
  -254
  -268
  -283
  -298
  -314
  -331
  -349
  -367
  -386
  -406
  -427
  -449
  -472
  -497
  -522
  -549
  -577
  -606
  -637
  -669
  -703
  -738
  -776
  -815
  -856
  -899
  -944
  -992
  -1,041
  -1,094
Cash from operations, $m
  4,812
  5,088
  5,382
  5,693
  6,024
  6,374
  6,744
  7,136
  7,551
  7,989
  8,341
  8,830
  9,347
  9,892
  10,468
  11,075
  11,716
  12,392
  13,104
  13,855
  14,647
  15,482
  16,361
  17,288
  18,264
  19,292
  20,375
  21,516
  22,717
  23,982
Maintenance CAPEX, $m
  -1,915
  -2,003
  -2,096
  -2,193
  -2,297
  -2,406
  -2,520
  -2,641
  -2,768
  -2,901
  -3,042
  -3,190
  -3,345
  -3,509
  -3,681
  -3,861
  -4,051
  -4,251
  -4,461
  -4,681
  -4,912
  -5,156
  -5,411
  -5,680
  -5,962
  -6,258
  -6,569
  -6,896
  -7,239
  -7,599
New CAPEX, $m
  -1,700
  -1,793
  -1,891
  -1,993
  -2,100
  -2,212
  -2,329
  -2,451
  -2,579
  -2,713
  -2,854
  -3,001
  -3,155
  -3,317
  -3,487
  -3,665
  -3,852
  -4,047
  -4,253
  -4,468
  -4,694
  -4,932
  -5,181
  -5,442
  -5,716
  -6,004
  -6,306
  -6,623
  -6,956
  -7,306
Cash from investing activities, $m
  -3,615
  -3,796
  -3,987
  -4,186
  -4,397
  -4,618
  -4,849
  -5,092
  -5,347
  -5,614
  -5,896
  -6,191
  -6,500
  -6,826
  -7,168
  -7,526
  -7,903
  -8,298
  -8,714
  -9,149
  -9,606
  -10,088
  -10,592
  -11,122
  -11,678
  -12,262
  -12,875
  -13,519
  -14,195
  -14,905
Free cash flow, $m
  1,198
  1,292
  1,395
  1,507
  1,627
  1,757
  1,896
  2,045
  2,204
  2,374
  2,446
  2,640
  2,846
  3,066
  3,300
  3,549
  3,813
  4,093
  4,391
  4,706
  5,040
  5,394
  5,769
  6,166
  6,586
  7,031
  7,500
  7,997
  8,522
  9,077
Issuance/(repayment) of debt, $m
  860
  873
  921
  970
  1,022
  1,077
  1,134
  1,193
  1,256
  1,321
  1,389
  1,461
  1,536
  1,615
  1,698
  1,784
  1,875
  1,971
  2,071
  2,175
  2,286
  2,401
  2,522
  2,650
  2,783
  2,923
  3,070
  3,225
  3,387
  3,557
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  
  860
  873
  921
  970
  1,022
  1,077
  1,134
  1,193
  1,256
  1,321
  1,389
  1,461
  1,536
  1,615
  1,698
  1,784
  1,875
  1,971
  2,071
  2,175
  2,286
  2,401
  2,522
  2,650
  2,783
  2,923
  3,070
  3,225
  3,387
  3,557
Total cash flow (excl. dividends), $m
  2,057
  2,165
  2,316
  2,477
  2,650
  2,833
  3,029
  3,238
  3,460
  3,695
  3,835
  4,101
  4,382
  4,681
  4,998
  5,333
  5,688
  6,064
  6,461
  6,882
  7,326
  7,796
  8,292
  8,816
  9,369
  9,954
  10,571
  11,222
  11,909
  12,634
Retained Cash Flow (-), $m
  -1,120
  -1,186
  -1,251
  -1,318
  -1,389
  -1,463
  -1,540
  -1,621
  -1,706
  -1,794
  -1,887
  -1,985
  -2,087
  -2,194
  -2,306
  -2,424
  -2,547
  -2,677
  -2,813
  -2,955
  -3,105
  -3,262
  -3,427
  -3,599
  -3,781
  -3,971
  -4,171
  -4,381
  -4,601
  -4,832
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
  937
  979
  1,065
  1,159
  1,261
  1,370
  1,489
  1,617
  1,754
  1,901
  1,947
  2,116
  2,296
  2,487
  2,692
  2,909
  3,141
  3,387
  3,649
  3,926
  4,221
  4,534
  4,865
  5,217
  5,589
  5,983
  6,400
  6,841
  7,308
  7,802
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
  898
  896
  927
  954
  977
  995
  1,006
  1,010
  1,007
  997
  925
  903
  873
  835
  790
  739
  683
  624
  562
  499
  437
  376
  319
  266
  217
  175
  137
  106
  80
  59
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 Corporation (CCL)

Valuation Ratios
P/E Ratio 12.6
Price to Sales 1.9
Price to Book 1.4
Price to Tangible Book
Price to Cash Flow 6.4
Price to Free Cash Flow 15.8
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 $18881 million for the last fiscal year's total revenue generated by Carnival Corporation. The default revenue input number comes from 0001 income statement of Carnival Corporation. 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 4.6% 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 Corporation, 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 Corporation.
    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 62.4%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $3864 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 Corporation.

Corporate tax rate of 27% is the nominal tax rate for Carnival Corporation. 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 195.7%.

Life of production assets of 19.3 years is the average useful life of capital assets used in Carnival Corporation 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 -29.3%. 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 - $24443 million for Carnival Corporation - 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 718.778 million for Carnival Corporation 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 Corporation at the current share price and the inputted number of shares is $32.9 billion.

RELATED COMPANIES Price Int.Val. Rating
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