Price to Earnings (P/E)
since 2005
Calculation
Royal Caribbean Cruises Ltd., P/E, long-term trends, calculation
| P/E | = | Share price1, 2, 3 | ÷ | Earnings per share1 (EPS) | EPS1 | = | Net income (loss) attributable to Royal Caribbean Cruises Ltd.1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 1, 2022 | — | = | 73.67 | ÷ | -20.63 | -20.63 | = | -5,260,499 | ÷ | 255,002,771 | |
| Feb 26, 2021 | — | = | 93.27 | ÷ | -24.41 | -24.41 | = | -5,797,462 | ÷ | 237,535,138 | |
| Feb 25, 2020 | 9.96 | = | 89.55 | ÷ | 8.99 | 8.99 | = | 1,878,887 | ÷ | 209,000,016 | |
| Feb 22, 2019 | 13.97 | = | 120.93 | ÷ | 8.66 | 8.66 | = | 1,811,042 | ÷ | 209,186,598 | |
| Feb 21, 2018 | 17.17 | = | 130.55 | ÷ | 7.60 | 7.60 | = | 1,625,133 | ÷ | 213,749,009 | |
| Feb 23, 2017 | 15.99 | = | 95.53 | ÷ | 5.97 | 5.97 | = | 1,283,388 | ÷ | 214,803,837 | |
| Feb 22, 2016 | 24.07 | = | 73.72 | ÷ | 3.06 | 3.06 | = | 665,783 | ÷ | 217,408,741 | |
| Feb 23, 2015 | 22.08 | = | 76.81 | ÷ | 3.48 | 3.48 | = | 764,146 | ÷ | 219,620,652 | |
| Feb 20, 2014 | 23.99 | = | 51.37 | ÷ | 2.14 | 2.14 | = | 473,692 | ÷ | 221,215,079 | |
| Feb 25, 2013 | 403.53 | = | 33.67 | ÷ | 0.08 | 0.08 | = | 18,287 | ÷ | 219,168,946 | |
| Feb 29, 2012 | 10.20 | = | 28.49 | ÷ | 2.79 | 2.79 | = | 607,421 | ÷ | 217,491,694 | |
| Feb 24, 2011 | 17.20 | = | 43.59 | ÷ | 2.53 | 2.53 | = | 547,467 | ÷ | 216,070,238 | |
| Feb 23, 2010 | 34.00 | = | 25.78 | ÷ | 0.76 | 0.76 | = | 162,421 | ÷ | 214,178,302 | |
| Feb 24, 2009 | 2.55 | = | 6.84 | ÷ | 2.69 | 2.69 | = | 573,722 | ÷ | 213,676,131 | |
| Feb 19, 2008 | 13.11 | = | 37.10 | ÷ | 2.83 | 2.83 | = | 603,405 | ÷ | 213,262,240 | |
| Feb 28, 2007 | 13.57 | = | 40.53 | ÷ | 2.99 | 2.99 | = | 633,922 | ÷ | 212,266,640 | |
| Feb 24, 2006 | 13.12 | = | 44.50 | ÷ | 3.39 | 3.39 | = | 715,956 | ÷ | 211,036,298 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Royal Caribbean Cruises Ltd. Annual Report.
An analysis of the financial valuation of Royal Caribbean Cruises Ltd. from 2006 to 2022 reveals significant volatility in the price-to-earnings (P/E) ratio, primarily driven by sharp fluctuations in earnings per share (EPS) and systemic market shocks.
- P/E Ratio Volatility
- The P/E ratio exhibited extreme variability throughout the observed period. After maintaining a stable range of approximately 13x between 2006 and 2008, the ratio collapsed to 2.55x in 2009. A subsequent period of extreme valuation instability occurred, peaking in 2013 with a ratio of 403.53x; this spike was not indicative of overvaluation by the market, but rather a mathematical result of earnings per share nearly reaching zero. From 2014 to 2016, the ratio stabilized at a higher range between 22x and 24x before trending downward to 9.96x by 2020.
- Earnings Performance and Valuation Correlation
- Earnings per share remained relatively consistent between 2006 and 2012, with a notable contraction in 2010. A strong growth phase was observed from 2014, where EPS rose from 2.14 to a peak of 8.99 in 2020. This growth trajectory was abruptly reversed in 2021 and 2022, with earnings plummeting to -24.41 and -20.63, respectively. Due to these negative earnings, the P/E ratio is not applicable for the final two years of the analysis.
- Share Price Trajectory
- The share price experienced a severe depression in 2009, reaching a low of 6.84, followed by a prolonged recovery and growth cycle that peaked at 130.55 in 2018. While earnings continued to grow through 2020, the share price began to decline from its 2018 peak, falling to 73.67 by March 2022. This divergence between rising earnings and falling share prices between 2018 and 2020 explains the compression of the P/E ratio during that specific interval.
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Comparison to Competitors
Royal Caribbean Cruises Ltd., P/E, long-term trends, comparison to competitors
| Royal Caribbean Cruises Ltd. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | DoorDash, Inc. | McDonald’s Corp. | Starbucks Corp. | |
|---|---|---|---|---|---|---|---|
| Mar 1, 2022 | — | — | 86.68 | 67.03 | — | 24.15 | 30.95 |
| Feb 26, 2021 | — | — | 1,696.44 | 122.18 | — | 33.31 | 118.26 |
| Feb 25, 2020 | 9.96 | — | 14.16 | 67.72 | — | 25.99 | 27.63 |
| Feb 22, 2019 | 13.97 | — | 21.46 | 91.33 | — | 23.66 | 18.71 |
| Feb 21, 2018 | 17.17 | — | 38.61 | 42.15 | — | 24.95 | 28.08 |
| Feb 23, 2017 | 15.99 | — | 37.59 | 499.87 | — | 22.55 | 28.81 |
| Feb 22, 2016 | 24.07 | — | 24.03 | 29.06 | — | 23.56 | 32.88 |
| Feb 23, 2015 | 22.08 | — | 26.12 | 47.09 | — | 19.19 | 28.27 |
| Feb 20, 2014 | 23.99 | — | 35.35 | 51.40 | — | 17.10 | 7,312.64 |
| Feb 25, 2013 | 403.53 | — | 24.45 | 35.78 | — | 17.64 | 26.20 |
| Feb 29, 2012 | 10.20 | — | 27.88 | 54.76 | — | 18.57 | 25.14 |
| Feb 24, 2011 | 17.20 | — | 42.86 | 46.04 | — | 15.70 | 24.20 |
| Feb 23, 2010 | 34.00 | — | 21.46 | 26.12 | — | 15.10 | 40.57 |
| Feb 24, 2009 | 2.55 | — | 17.74 | 21.96 | — | 14.02 | 19.66 |
| Feb 19, 2008 | 13.11 | — | 28.14 | 48.84 | — | 26.95 | 25.02 |
| Feb 28, 2007 | 13.57 | — | 27.59 | 50.83 | — | 15.55 | 48.96 |
| Feb 24, 2006 | 13.12 | — | 4.89 | 46.61 | — | 17.02 | 48.21 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Consumer Services)
Royal Caribbean Cruises Ltd., P/E, long-term trends, comparison to sector (consumer services)
| Royal Caribbean Cruises Ltd. | Consumer Services | |
|---|---|---|
| Mar 1, 2022 | — | 46.48 |
| Feb 26, 2021 | — | 569.28 |
| Feb 25, 2020 | 9.96 | 23.50 |
| Feb 22, 2019 | 13.97 | 22.35 |
| Feb 21, 2018 | 17.17 | 29.11 |
| Feb 23, 2017 | 15.99 | 28.83 |
| Feb 22, 2016 | 24.07 | 26.42 |
| Feb 23, 2015 | 22.08 | 24.14 |
| Feb 20, 2014 | 23.99 | 30.71 |
| Feb 25, 2013 | 403.53 | 20.75 |
| Feb 29, 2012 | 10.20 | 21.79 |
| Feb 24, 2011 | 17.20 | 19.91 |
| Feb 23, 2010 | 34.00 | 17.70 |
| Feb 24, 2009 | 2.55 | 14.65 |
| Feb 19, 2008 | 13.11 | 27.08 |
| Feb 28, 2007 | 13.57 | 20.57 |
| Feb 24, 2006 | 13.12 | 21.30 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Consumer Discretionary)
Royal Caribbean Cruises Ltd., P/E, long-term trends, comparison to industry (consumer discretionary)
| Royal Caribbean Cruises Ltd. | Consumer Discretionary | |
|---|---|---|
| Mar 1, 2022 | — | 39.27 |
| Feb 26, 2021 | — | 73.74 |
| Feb 25, 2020 | 9.96 | 39.37 |
| Feb 22, 2019 | 13.97 | 33.13 |
| Feb 21, 2018 | 17.17 | 47.03 |
| Feb 23, 2017 | 15.99 | 29.19 |
| Feb 22, 2016 | 24.07 | 24.70 |
| Feb 23, 2015 | 22.08 | 29.48 |
| Feb 20, 2014 | 23.99 | 26.50 |
| Feb 25, 2013 | 403.53 | 20.90 |
| Feb 29, 2012 | 10.20 | 11.38 |
| Feb 24, 2011 | 17.20 | 17.54 |
| Feb 23, 2010 | 34.00 | 18.66 |
| Feb 24, 2009 | 2.55 | 303.41 |
| Feb 19, 2008 | 13.11 | 24.33 |
| Feb 28, 2007 | 13.57 | 117.34 |
| Feb 24, 2006 | 13.12 | 17.54 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).