Price to Sales (P/S)
since 2005
Calculation
Royal Caribbean Cruises Ltd., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Revenues1 (in thousands) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 1, 2022 | 12.26 | = | 73.67 | ÷ | 6.01 | 6.01 | = | 1,532,133 | ÷ | 255,002,771 | |
| Feb 26, 2021 | 10.03 | = | 93.27 | ÷ | 9.30 | 9.30 | = | 2,208,805 | ÷ | 237,535,138 | |
| Feb 25, 2020 | 1.71 | = | 89.55 | ÷ | 52.40 | 52.40 | = | 10,950,661 | ÷ | 209,000,016 | |
| Feb 22, 2019 | 2.66 | = | 120.93 | ÷ | 45.38 | 45.38 | = | 9,493,849 | ÷ | 209,186,598 | |
| Feb 21, 2018 | 3.18 | = | 130.55 | ÷ | 41.07 | 41.07 | = | 8,777,845 | ÷ | 213,749,009 | |
| Feb 23, 2017 | 2.42 | = | 95.53 | ÷ | 39.55 | 39.55 | = | 8,496,401 | ÷ | 214,803,837 | |
| Feb 22, 2016 | 1.93 | = | 73.72 | ÷ | 38.17 | 38.17 | = | 8,299,074 | ÷ | 217,408,741 | |
| Feb 23, 2015 | 2.09 | = | 76.81 | ÷ | 36.76 | 36.76 | = | 8,073,855 | ÷ | 219,620,652 | |
| Feb 20, 2014 | 1.43 | = | 51.37 | ÷ | 35.98 | 35.98 | = | 7,959,894 | ÷ | 221,215,079 | |
| Feb 25, 2013 | 0.96 | = | 33.67 | ÷ | 35.08 | 35.08 | = | 7,688,024 | ÷ | 219,168,946 | |
| Feb 29, 2012 | 0.82 | = | 28.49 | ÷ | 34.66 | 34.66 | = | 7,537,263 | ÷ | 217,491,694 | |
| Feb 24, 2011 | 1.39 | = | 43.59 | ÷ | 31.25 | 31.25 | = | 6,752,504 | ÷ | 216,070,238 | |
| Feb 23, 2010 | 0.94 | = | 25.78 | ÷ | 27.50 | 27.50 | = | 5,889,826 | ÷ | 214,178,302 | |
| Feb 24, 2009 | 0.22 | = | 6.84 | ÷ | 30.57 | 30.57 | = | 6,532,525 | ÷ | 213,676,131 | |
| Feb 19, 2008 | 1.29 | = | 37.10 | ÷ | 28.83 | 28.83 | = | 6,149,139 | ÷ | 213,262,240 | |
| Feb 28, 2007 | 1.65 | = | 40.53 | ÷ | 24.64 | 24.64 | = | 5,229,584 | ÷ | 212,266,640 | |
| Feb 24, 2006 | 1.92 | = | 44.50 | ÷ | 23.23 | 23.23 | = | 4,903,174 | ÷ | 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.
The Price to Sales (P/S) ratio exhibits significant volatility over the analyzed period, characterized by a sharp contraction, a prolonged recovery and expansion phase, and a final period of extreme valuation divergence driven by a collapse in revenue.
- Initial Valuation Contraction (2006–2009)
- A marked decrease in the P/S ratio is observed, falling from 1.92 in 2006 to a period low of 0.22 in 2009. This trend occurred despite a steady increase in sales per share, which rose from 23.23 to 30.57. The compression was driven primarily by a precipitous decline in the share price, which dropped from 44.50 to 6.84.
- Recovery and Valuation Expansion (2010–2018)
- A sustained upward trend is evident as both share prices and sales per share grew concurrently. The P/S ratio climbed from 0.94 in 2010 to a peak of 3.18 in 2018. This period reflects an increasing market premium attributed to the company, with the share price reaching a high of 130.55 against sales per share of 41.07.
- Revenue Shock and Multiple Spike (2019–2022)
- A dramatic divergence between revenue and market valuation occurred starting in 2021. While sales per share collapsed from a peak of 52.40 in 2020 to 6.01 by 2022, the share price remained relatively resilient in comparison. This caused the P/S ratio to surge exponentially from 1.71 in 2020 to 12.26 in 2022, indicating that the market valuation became decoupled from current sales performance.
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Comparison to Competitors
Royal Caribbean Cruises Ltd., P/S, 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 | 12.26 | 16.64 | 9.22 | 5.80 | 7.30 | 7.85 | 4.47 |
| Feb 26, 2021 | 10.03 | 37.16 | 14.73 | 7.26 | 16.87 | 8.20 | 4.67 |
| Feb 25, 2020 | 1.71 | — | 4.57 | 4.24 | — | 7.43 | 3.75 |
| Feb 22, 2019 | 2.66 | — | 5.91 | 3.31 | — | 6.67 | 3.42 |
| Feb 21, 2018 | 3.18 | — | 7.13 | 1.66 | — | 5.68 | 3.62 |
| Feb 23, 2017 | 2.42 | — | 7.47 | 2.94 | — | 4.29 | 3.81 |
| Feb 22, 2016 | 1.93 | — | 6.65 | 3.07 | — | 4.20 | 4.73 |
| Feb 23, 2015 | 2.09 | — | 7.49 | 5.10 | — | 3.33 | 3.55 |
| Feb 20, 2014 | 1.43 | — | 9.85 | 5.24 | — | 3.40 | 4.08 |
| Feb 25, 2013 | 0.96 | — | 6.60 | 3.64 | — | 3.50 | 2.73 |
| Feb 29, 2012 | 0.82 | — | 6.76 | 5.19 | — | 3.78 | 2.68 |
| Feb 24, 2011 | 1.39 | — | 7.33 | 4.49 | — | 3.23 | 2.14 |
| Feb 23, 2010 | 0.94 | — | 4.49 | 2.18 | — | 3.02 | 1.62 |
| Feb 24, 2009 | 0.22 | — | 1.82 | 1.29 | — | 2.57 | 0.60 |
| Feb 19, 2008 | 1.29 | — | 3.11 | 3.17 | — | 2.83 | 1.79 |
| Feb 28, 2007 | 1.65 | — | 1.78 | 2.56 | — | 2.55 | 3.55 |
| Feb 24, 2006 | 1.92 | — | 0.97 | 2.80 | — | 2.17 | 3.74 |
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/S, long-term trends, comparison to sector (consumer services)
| Royal Caribbean Cruises Ltd. | Consumer Services | |
|---|---|---|
| Mar 1, 2022 | 12.26 | 7.25 |
| Feb 26, 2021 | 10.03 | 9.47 |
| Feb 25, 2020 | 1.71 | 5.11 |
| Feb 22, 2019 | 2.66 | 5.02 |
| Feb 21, 2018 | 3.18 | 4.94 |
| Feb 23, 2017 | 2.42 | 4.60 |
| Feb 22, 2016 | 1.93 | 4.67 |
| Feb 23, 2015 | 2.09 | 4.15 |
| Feb 20, 2014 | 1.43 | 4.53 |
| Feb 25, 2013 | 0.96 | 3.63 |
| Feb 29, 2012 | 0.82 | 3.85 |
| Feb 24, 2011 | 1.39 | 3.31 |
| Feb 23, 2010 | 0.94 | 2.70 |
| Feb 24, 2009 | 0.22 | 1.93 |
| Feb 19, 2008 | 1.29 | 2.57 |
| Feb 28, 2007 | 1.65 | 2.77 |
| Feb 24, 2006 | 1.92 | 2.49 |
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/S, long-term trends, comparison to industry (consumer discretionary)
| Royal Caribbean Cruises Ltd. | Consumer Discretionary | |
|---|---|---|
| Mar 1, 2022 | 12.26 | 3.58 |
| Feb 26, 2021 | 10.03 | 3.81 |
| Feb 25, 2020 | 1.71 | 2.33 |
| Feb 22, 2019 | 2.66 | 2.05 |
| Feb 21, 2018 | 3.18 | 2.06 |
| Feb 23, 2017 | 2.42 | 1.68 |
| Feb 22, 2016 | 1.93 | 1.57 |
| Feb 23, 2015 | 2.09 | 1.32 |
| Feb 20, 2014 | 1.43 | 1.33 |
| Feb 25, 2013 | 0.96 | 1.06 |
| Feb 29, 2012 | 0.82 | 0.97 |
| Feb 24, 2011 | 1.39 | 0.96 |
| Feb 23, 2010 | 0.94 | 0.92 |
| Feb 24, 2009 | 0.22 | 0.66 |
| Feb 19, 2008 | 1.29 | 0.79 |
| Feb 28, 2007 | 1.65 | 0.86 |
| Feb 24, 2006 | 1.92 | 0.79 |
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).