Intrinsic value of Royal Caribbean Cruises - RCL

Previous Close

$110.56

  Intrinsic Value

$42.09

stock screener

  Rating & Target

str. sell

-62%

Previous close

$110.56

 
Intrinsic value

$42.09

 
Up/down potential

-62%

 
Rating

str. sell

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 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 23.7

 

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, %
  3.30
  3.47
  3.62
  3.76
  3.88
  4.00
  4.10
  4.19
  4.27
  4.34
  4.41
  4.47
  4.52
  4.57
  4.61
  4.65
  4.68
  4.72
  4.74
  4.77
  4.79
  4.81
  4.83
  4.85
  4.86
  4.88
  4.89
  4.90
  4.91
  4.92
Revenue, $m
  9,068
  9,382
  9,722
  10,088
  10,480
  10,899
  11,345
  11,820
  12,325
  12,860
  13,426
  14,026
  14,660
  15,330
  16,036
  16,782
  17,568
  18,397
  19,270
  20,189
  21,157
  22,175
  23,247
  24,374
  25,560
  26,807
  28,118
  29,496
  30,944
  32,467
Variable operating expenses, $m
  1,495
  1,546
  1,601
  1,660
  1,724
  1,791
  1,863
  1,940
  2,022
  2,108
  2,171
  2,268
  2,371
  2,479
  2,593
  2,714
  2,841
  2,975
  3,116
  3,265
  3,421
  3,586
  3,759
  3,942
  4,133
  4,335
  4,547
  4,770
  5,004
  5,250
Fixed operating expenses, $m
  5,865
  5,994
  6,126
  6,261
  6,399
  6,539
  6,683
  6,830
  6,981
  7,134
  7,291
  7,452
  7,615
  7,783
  7,954
  8,129
  8,308
  8,491
  8,678
  8,869
  9,064
  9,263
  9,467
  9,675
  9,888
  10,106
  10,328
  10,555
  10,787
  11,025
Total operating expenses, $m
  7,360
  7,540
  7,727
  7,921
  8,123
  8,330
  8,546
  8,770
  9,003
  9,242
  9,462
  9,720
  9,986
  10,262
  10,547
  10,843
  11,149
  11,466
  11,794
  12,134
  12,485
  12,849
  13,226
  13,617
  14,021
  14,441
  14,875
  15,325
  15,791
  16,275
Operating income, $m
  1,707
  1,842
  1,995
  2,167
  2,358
  2,568
  2,798
  3,049
  3,322
  3,617
  3,964
  4,306
  4,674
  5,068
  5,489
  5,939
  6,419
  6,931
  7,476
  8,056
  8,672
  9,326
  10,021
  10,758
  11,539
  12,366
  13,243
  14,171
  15,153
  16,192
EBITDA, $m
  3,826
  4,033
  4,265
  4,521
  4,802
  5,109
  5,442
  5,803
  6,192
  6,610
  7,059
  7,539
  8,053
  8,601
  9,185
  9,807
  10,469
  11,172
  11,918
  12,709
  13,549
  14,438
  15,379
  16,376
  17,430
  18,545
  19,724
  20,970
  22,286
  23,676
Interest expense (income), $m
  257
  407
  427
  450
  474
  500
  528
  558
  590
  623
  659
  698
  738
  781
  826
  874
  924
  977
  1,033
  1,092
  1,154
  1,220
  1,289
  1,361
  1,438
  1,518
  1,603
  1,692
  1,785
  1,883
  1,986
Earnings before tax, $m
  1,300
  1,415
  1,545
  1,693
  1,858
  2,040
  2,240
  2,460
  2,699
  2,958
  3,266
  3,568
  3,893
  4,242
  4,615
  5,015
  5,442
  5,898
  6,384
  6,901
  7,452
  8,037
  8,659
  9,320
  10,021
  10,764
  11,551
  12,386
  13,270
  14,206
Tax expense, $m
  351
  382
  417
  457
  502
  551
  605
  664
  729
  799
  882
  963
  1,051
  1,145
  1,246
  1,354
  1,469
  1,592
  1,724
  1,863
  2,012
  2,170
  2,338
  2,516
  2,706
  2,906
  3,119
  3,344
  3,583
  3,836
Net income, $m
  949
  1,033
  1,128
  1,236
  1,356
  1,489
  1,636
  1,796
  1,970
  2,159
  2,385
  2,605
  2,842
  3,097
  3,369
  3,661
  3,973
  4,306
  4,660
  5,038
  5,440
  5,867
  6,321
  6,803
  7,315
  7,858
  8,433
  9,042
  9,687
  10,370

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
  23,014
  23,813
  24,676
  25,604
  26,598
  27,661
  28,794
  30,000
  31,280
  32,638
  34,077
  35,599
  37,208
  38,908
  40,702
  42,594
  44,590
  46,693
  48,908
  51,242
  53,698
  56,283
  59,003
  61,864
  64,873
  68,038
  71,365
  74,862
  78,539
  82,403
Adjusted assets (=assets-cash), $m
  23,014
  23,813
  24,676
  25,604
  26,598
  27,661
  28,794
  30,000
  31,280
  32,638
  34,077
  35,599
  37,208
  38,908
  40,702
  42,594
  44,590
  46,693
  48,908
  51,242
  53,698
  56,283
  59,003
  61,864
  64,873
  68,038
  71,365
  74,862
  78,539
  82,403
Revenue / Adjusted assets
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
  0.394
Average production assets, $m
  20,901
  21,626
  22,410
  23,253
  24,156
  25,121
  26,150
  27,245
  28,408
  29,641
  30,948
  32,330
  33,791
  35,335
  36,964
  38,683
  40,495
  42,405
  44,417
  46,536
  48,767
  51,114
  53,584
  56,183
  58,916
  61,790
  64,811
  67,988
  71,327
  74,836
Working capital, $m
  -254
  -263
  -272
  -282
  -293
  -305
  -318
  -331
  -345
  -360
  -376
  -393
  -410
  -429
  -449
  -470
  -492
  -515
  -540
  -565
  -592
  -621
  -651
  -682
  -716
  -751
  -787
  -826
  -866
  -909
Total debt, $m
  7,913
  8,328
  8,777
  9,259
  9,776
  10,329
  10,918
  11,545
  12,211
  12,917
  13,665
  14,457
  15,293
  16,177
  17,110
  18,094
  19,132
  20,225
  21,378
  22,591
  23,868
  25,212
  26,626
  28,114
  29,679
  31,325
  33,055
  34,874
  36,785
  38,795
Total liabilities, $m
  11,967
  12,383
  12,831
  13,314
  13,831
  14,384
  14,973
  15,600
  16,266
  16,972
  17,720
  18,511
  19,348
  20,232
  21,165
  22,149
  23,187
  24,280
  25,432
  26,646
  27,923
  29,267
  30,681
  32,169
  33,734
  35,380
  37,110
  38,928
  40,840
  42,850
Total equity, $m
  11,047
  11,430
  11,844
  12,290
  12,767
  13,277
  13,821
  14,400
  15,015
  15,666
  16,357
  17,088
  17,860
  18,676
  19,537
  20,445
  21,403
  22,413
  23,476
  24,596
  25,775
  27,016
  28,321
  29,695
  31,139
  32,658
  34,255
  35,934
  37,699
  39,553
Total liabilities and equity, $m
  23,014
  23,813
  24,675
  25,604
  26,598
  27,661
  28,794
  30,000
  31,281
  32,638
  34,077
  35,599
  37,208
  38,908
  40,702
  42,594
  44,590
  46,693
  48,908
  51,242
  53,698
  56,283
  59,002
  61,864
  64,873
  68,038
  71,365
  74,862
  78,539
  82,403
Debt-to-equity ratio
  0.720
  0.730
  0.740
  0.750
  0.770
  0.780
  0.790
  0.800
  0.810
  0.820
  0.840
  0.850
  0.860
  0.870
  0.880
  0.890
  0.890
  0.900
  0.910
  0.920
  0.930
  0.930
  0.940
  0.950
  0.950
  0.960
  0.960
  0.970
  0.980
  0.980
Adjusted equity ratio
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480
  0.480

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  949
  1,033
  1,128
  1,236
  1,356
  1,489
  1,636
  1,796
  1,970
  2,159
  2,385
  2,605
  2,842
  3,097
  3,369
  3,661
  3,973
  4,306
  4,660
  5,038
  5,440
  5,867
  6,321
  6,803
  7,315
  7,858
  8,433
  9,042
  9,687
  10,370
Depreciation, amort., depletion, $m
  2,119
  2,192
  2,270
  2,354
  2,444
  2,541
  2,644
  2,753
  2,870
  2,993
  3,095
  3,233
  3,379
  3,533
  3,696
  3,868
  4,050
  4,241
  4,442
  4,654
  4,877
  5,111
  5,358
  5,618
  5,892
  6,179
  6,481
  6,799
  7,133
  7,484
Funds from operations, $m
  3,068
  3,224
  3,398
  3,590
  3,800
  4,030
  4,279
  4,549
  4,840
  5,152
  5,479
  5,838
  6,221
  6,630
  7,066
  7,529
  8,022
  8,546
  9,102
  9,692
  10,317
  10,979
  11,680
  12,422
  13,207
  14,037
  14,914
  15,841
  16,820
  17,854
Change in working capital, $m
  -8
  -9
  -10
  -10
  -11
  -12
  -13
  -13
  -14
  -15
  -16
  -17
  -18
  -19
  -20
  -21
  -22
  -23
  -24
  -26
  -27
  -29
  -30
  -32
  -33
  -35
  -37
  -39
  -41
  -43
Cash from operations, $m
  3,076
  3,233
  3,407
  3,600
  3,811
  4,042
  4,292
  4,562
  4,854
  5,167
  5,495
  5,855
  6,239
  6,649
  7,085
  7,550
  8,044
  8,569
  9,126
  9,717
  10,344
  11,007
  11,710
  12,453
  13,240
  14,071
  14,950
  15,879
  16,860
  17,896
Maintenance CAPEX, $m
  -2,024
  -2,090
  -2,163
  -2,241
  -2,325
  -2,416
  -2,512
  -2,615
  -2,725
  -2,841
  -2,964
  -3,095
  -3,233
  -3,379
  -3,533
  -3,696
  -3,868
  -4,050
  -4,241
  -4,442
  -4,654
  -4,877
  -5,111
  -5,358
  -5,618
  -5,892
  -6,179
  -6,481
  -6,799
  -7,133
New CAPEX, $m
  -664
  -725
  -784
  -843
  -903
  -965
  -1,029
  -1,095
  -1,163
  -1,233
  -1,306
  -1,382
  -1,461
  -1,544
  -1,629
  -1,719
  -1,812
  -1,910
  -2,012
  -2,119
  -2,231
  -2,348
  -2,470
  -2,598
  -2,733
  -2,874
  -3,022
  -3,176
  -3,339
  -3,509
Cash from investing activities, $m
  -2,688
  -2,815
  -2,947
  -3,084
  -3,228
  -3,381
  -3,541
  -3,710
  -3,888
  -4,074
  -4,270
  -4,477
  -4,694
  -4,923
  -5,162
  -5,415
  -5,680
  -5,960
  -6,253
  -6,561
  -6,885
  -7,225
  -7,581
  -7,956
  -8,351
  -8,766
  -9,201
  -9,657
  -10,138
  -10,642
Free cash flow, $m
  388
  418
  461
  516
  583
  661
  751
  852
  966
  1,093
  1,225
  1,378
  1,545
  1,726
  1,923
  2,135
  2,364
  2,610
  2,874
  3,157
  3,460
  3,783
  4,128
  4,496
  4,889
  5,306
  5,750
  6,222
  6,723
  7,254
Issuance/(repayment) of debt, $m
  373
  415
  449
  483
  517
  553
  589
  627
  666
  706
  748
  791
  837
  884
  933
  984
  1,038
  1,094
  1,152
  1,213
  1,277
  1,344
  1,414
  1,488
  1,565
  1,646
  1,730
  1,819
  1,912
  2,009
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  
  373
  415
  449
  483
  517
  553
  589
  627
  666
  706
  748
  791
  837
  884
  933
  984
  1,038
  1,094
  1,152
  1,213
  1,277
  1,344
  1,414
  1,488
  1,565
  1,646
  1,730
  1,819
  1,912
  2,009
Total cash flow (excl. dividends), $m
  761
  833
  910
  999
  1,100
  1,214
  1,340
  1,479
  1,632
  1,799
  1,973
  2,169
  2,381
  2,610
  2,856
  3,119
  3,401
  3,703
  4,026
  4,370
  4,737
  5,127
  5,543
  5,984
  6,453
  6,951
  7,480
  8,040
  8,634
  9,264
Retained Cash Flow (-), $m
  -345
  -383
  -414
  -445
  -477
  -510
  -544
  -579
  -615
  -652
  -690
  -731
  -772
  -816
  -861
  -908
  -958
  -1,009
  -1,063
  -1,120
  -1,179
  -1,241
  -1,306
  -1,373
  -1,444
  -1,519
  -1,597
  -1,679
  -1,765
  -1,855
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
  73
  75
  78
  81
  84
  87
  91
  95
  99
  103
  107
  112
  117
  123
  128
  134
  141
  147
  154
  162
  169
  177
  186
  195
  204
  214
  225
  236
  248
Cash available for distribution, $m
  417
  450
  496
  554
  623
  703
  796
  901
  1,018
  1,147
  1,282
  1,439
  1,609
  1,794
  1,994
  2,211
  2,444
  2,694
  2,963
  3,250
  3,558
  3,886
  4,237
  4,611
  5,009
  5,433
  5,883
  6,361
  6,870
  7,409
Discount rate, %
  5.70
  5.99
  6.28
  6.60
  6.93
  7.27
  7.64
  8.02
  8.42
  8.84
  9.28
  9.75
  10.24
  10.75
  11.29
  11.85
  12.44
  13.06
  13.72
  14.40
  15.12
  15.88
  16.67
  17.51
  18.38
  19.30
  20.27
  21.28
  22.34
  23.46
PV of cash for distribution, $m
  394
  400
  413
  429
  445
  462
  476
  486
  492
  492
  483
  471
  453
  430
  401
  368
  333
  295
  258
  220
  185
  152
  122
  96
  74
  55
  40
  29
  20
  13
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

Royal Caribbean Cruises Ltd. is a cruise company. The Company owns and operates three global cruise brands: Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises (Global Brands). The Company also own joint venture interest in the German brand TUI Cruises, interest in the Spanish brand Pullmantur and interest in the Chinese brand SkySea Cruises (collectively, Partner Brands). Together, its Global Brands and its Partner Brands operate a combined total of 49 ships in the cruise vacation industry with an aggregate capacity of approximately 123,270 berths as of December 31, 2016. As of December 31, 2016, the Company's ships offer a selection of itineraries that call on approximately 535 destinations in 105 countries, covering all seven continents. Royal Caribbean International offers a range of itineraries to the destinations, including Alaska, Asia, Australia, Canada, the Caribbean, the Panama Canal and New Zealand with cruise lengths that range from 2 to 24 nights.

FINANCIAL RATIOS  of  Royal Caribbean Cruises (RCL)

Valuation Ratios
P/E Ratio 18.5
Price to Sales 2.8
Price to Book 2.6
Price to Tangible Book
Price to Cash Flow 9.4
Price to Free Cash Flow 1031.5
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 $8778 million for the last fiscal year's total revenue generated by Royal Caribbean Cruises. The default revenue input number comes from 2017 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 3.3% 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 5.7%, 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 16.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $5739 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 5.4% 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 0.8%.

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 230.5%.

Life of production assets of 10 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 -2.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $10702 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 214 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 $23.7 billion.

RELATED COMPANIES Price Int.Val. Rating
CCL Carnival 58.14 6.71  str.sell
NCLH Norwegian Crui 49.54 5.52  str.sell
DIS Walt Disney 111.48 112.76  hold
LIND Lindblad Exped 13.50 4.12  str.sell

COMPANY NEWS

▶ Norwegian Cruise Line Makes Waves Ahead of Earnings   [Jul-18-18 02:56PM  Barrons.com]
▶ Royal Caribbean: This Stock Shouldn't Be Docked   [Jul-16-18 05:53PM  Barrons.com]
▶ MSC Cruises inks pact with county to build terminal at PortMiami   [Jul-11-18 06:41PM  American City Business Journals]
▶ How PortMiami will keep its title as the Cruise Capital of the World   [02:09PM  American City Business Journals]
▶ 15-year-old cruise ship gets $120M makeover   [06:52AM  American City Business Journals]
▶ Company News For Jun 15, 2018   [Jun-15-18 10:12AM  Zacks]
▶ [$$] Royal Caribbean to Buy Controlling Stake in Silversea   [Jun-14-18 08:01PM  The Wall Street Journal]
▶ [$$] Royal Caribbean to Buy Controlling Stake in Silversea   [05:11PM  The Wall Street Journal]
▶ 5 Big Movers in the Blitz   [01:50PM  CNBC Videos]
▶ Royal Caribbean to acquire majority stake in luxury cruise line for $1B   [07:50AM  American City Business Journals]
▶ Cruise Operators: Full Steam Ahead   [Jun-13-18 10:27AM  Barrons.com]
▶ Why Cruise Ship Stocks Are Sinking   [Jun-08-18 11:53AM  Investopedia]
▶ Cruise Stocks Recover From Cabin Fever   [10:41AM  Barrons.com]
▶ [$$] What's On Deck for the Cruise Industry?   [May-31-18 10:08AM  Barrons.com]
▶ Where Do Old Cruise Ships Go To Die?   [04:00AM  Bloomberg]
▶ Royal Caribbean Rides on Increasing Demand   [May-29-18 05:48PM  Zacks]
▶ Final Trade: Stocks fit for a queen   [May-18-18 05:30PM  CNBC Videos]
▶ Americans support legal sports gambling   [01:14PM  Yahoo Finance Video]
▶ Gambling on Sports Betting: Fanduel and Churchill Downs make moves   [May-16-18 01:22PM  Yahoo Finance Video]
▶ Azamara Club Cruises® Unveils 2020 Itineraries   [May-15-18 03:21PM  PR Newswire]
▶ A bigger ship for Cuba cruises sails in Port Tampa Bay   [May-14-18 04:38PM  American City Business Journals]
▶ Chipotle Up So Big on So Little   [May-01-18 03:59PM  Motley Fool]
▶ Royal Caribbean: 1Q Earnings Snapshot   [08:39AM  Associated Press]
▶ Royal Caribbean: A Stock in Shipshape   [Apr-25-18 12:52PM  Barrons.com]
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