Common Stock Valuation Ratios (Price Multiples)
Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).
Current Valuation Ratios
Royal Caribbean Cruises Ltd., current price multiples
| Royal Caribbean Cruises Ltd. | Airbnb Inc. | Booking Holdings Inc. | Carnival Corp. & plc | Chipotle Mexican Grill Inc. | McDonald’s Corp. | Starbucks Corp. | Consumer Services | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | ||||||||||||
| Current share price (P) | $38.71 | |||||||||||
| No. shares of common stock outstanding | 255,059,197 | |||||||||||
| Earnings per share (EPS) | $-20.62 | |||||||||||
| Operating profit per share | $-15.17 | |||||||||||
| Sales per share | $6.01 | |||||||||||
| Book value per share (BVPS) | $19.94 | |||||||||||
| Valuation Ratios (Price Multiples) | ||||||||||||
| Price to sales (P/S) | 6.44 | 10.42 | 5.68 | 0.88 | 8.78 | 7.66 | 2.30 | 7.73 | 3.48 | |||
| Price to book value (P/BV) | 1.94 | 12.66 | — | 2.75 | 28.30 | — | — | 39.31 | 12.54 | |||
Based on: 10-K (reporting date: 2021-12-31).
If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.
Historical Valuation Ratios (Summary)
Royal Caribbean Cruises Ltd., historical price multiples
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Royal Caribbean Cruises Ltd. P/S ratio increased from 2019 to 2020 and from 2020 to 2021. |
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Royal Caribbean Cruises Ltd. P/BV ratio increased from 2019 to 2020 and from 2020 to 2021. |
Price to Earnings (P/E)
Royal Caribbean Cruises Ltd., historical P/E calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 255,002,771 | 237,535,138 | 209,000,016 | 209,186,598 | 213,749,009 | |
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to Royal Caribbean Cruises Ltd. (in thousands) | (5,260,499) | (5,797,462) | 1,878,887) | 1,811,042) | 1,625,133) | |
| Earnings per share (EPS)2 | -20.63 | -24.41 | 8.99 | 8.66 | 7.60 | |
| Share price1, 3 | 73.67 | 93.27 | 89.55 | 120.93 | 130.55 | |
| Valuation Ratio | ||||||
| P/E ratio4 | — | — | 9.96 | 13.97 | 17.17 | |
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Airbnb Inc. | — | — | — | — | — | |
| Booking Holdings Inc. | 86.68 | 1,696.44 | 14.16 | — | — | |
| Carnival Corp. & plc | — | — | 11.04 | 12.86 | — | |
| Chipotle Mexican Grill Inc. | 67.03 | 122.20 | 67.72 | — | — | |
| McDonald’s Corp. | 24.15 | 33.31 | 25.99 | — | — | |
| Starbucks Corp. | 30.95 | 118.26 | 27.63 | 18.71 | — | |
| P/E Ratio, Sector | ||||||
| Consumer Services | 156.09 | — | 21.41 | — | — | |
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | 42.84 | 90.96 | 37.86 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ No. shares of common stock outstanding
= -5,260,499,000 ÷ 255,002,771 = -20.63
3 Closing price as at the filing date of Royal Caribbean Cruises Ltd. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 73.67 ÷ -20.63 = —
5 Click competitor name to see calculations.
Price to Operating Profit (P/OP)
Royal Caribbean Cruises Ltd., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 255,002,771 | 237,535,138 | 209,000,016 | 209,186,598 | 213,749,009 | |
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in thousands) | (3,870,334) | (4,601,557) | 2,082,701) | 1,894,801) | 1,744,056) | |
| Operating profit per share2 | -15.18 | -19.37 | 9.97 | 9.06 | 8.16 | |
| Share price1, 3 | 73.67 | 93.27 | 89.55 | 120.93 | 130.55 | |
| Valuation Ratio | ||||||
| P/OP ratio4 | — | — | 8.99 | 13.35 | 16.00 | |
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Airbnb Inc. | 232.24 | — | — | — | — | |
| Booking Holdings Inc. | 40.46 | — | 12.89 | — | — | |
| Carnival Corp. & plc | — | — | 10.08 | 12.19 | — | |
| Chipotle Mexican Grill Inc. | 54.38 | 149.82 | 53.42 | — | — | |
| McDonald’s Corp. | 17.59 | 21.51 | 17.27 | — | — | |
| Starbucks Corp. | 26.68 | 70.29 | 24.39 | 21.78 | — | |
| P/OP Ratio, Sector | ||||||
| Consumer Services | 48.78 | — | 17.18 | — | — | |
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | 43.80 | 68.07 | 29.55 | — | — | |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Operating profit per share = Operating income (loss) ÷ No. shares of common stock outstanding
= -3,870,334,000 ÷ 255,002,771 = -15.18
3 Closing price as at the filing date of Royal Caribbean Cruises Ltd. Annual Report.
4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 73.67 ÷ -15.18 = —
5 Click competitor name to see calculations.
Price to Sales (P/S)
Royal Caribbean Cruises Ltd., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 255,002,771 | 237,535,138 | 209,000,016 | 209,186,598 | 213,749,009 | |
| Selected Financial Data (US$) | ||||||
| Revenues (in thousands) | 1,532,133) | 2,208,805) | 10,950,661) | 9,493,849) | 8,777,845) | |
| Sales per share2 | 6.01 | 9.30 | 52.40 | 45.38 | 41.07 | |
| Share price1, 3 | 73.67 | 93.27 | 89.55 | 120.93 | 130.55 | |
| Valuation Ratio | ||||||
| P/S ratio4 | 12.26 | 10.03 | 1.71 | 2.66 | 3.18 | |
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Airbnb Inc. | 16.64 | 37.16 | — | — | — | |
| Booking Holdings Inc. | 9.22 | 14.73 | 4.57 | — | — | |
| Carnival Corp. & plc | 11.73 | 3.74 | 1.59 | 2.15 | — | |
| Chipotle Mexican Grill Inc. | 5.80 | 7.26 | 4.24 | — | — | |
| McDonald’s Corp. | 7.85 | 8.20 | 7.43 | — | — | |
| Starbucks Corp. | 4.47 | 4.67 | 3.75 | 3.42 | — | |
| P/S Ratio, Sector | ||||||
| Consumer Services | 7.36 | 8.64 | 4.29 | — | — | |
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | 3.57 | 3.77 | 2.31 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 1,532,133,000 ÷ 255,002,771 = 6.01
3 Closing price as at the filing date of Royal Caribbean Cruises Ltd. Annual Report.
4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 73.67 ÷ 6.01 = 12.26
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/S ratio | An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. | Royal Caribbean Cruises Ltd. P/S ratio increased from 2019 to 2020 and from 2020 to 2021. |
Price to Book Value (P/BV)
Royal Caribbean Cruises Ltd., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 255,002,771 | 237,535,138 | 209,000,016 | 209,186,598 | 213,749,009 | |
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in thousands) | 5,085,556) | 8,760,669) | 12,163,846) | 11,105,461) | 10,702,303) | |
| Book value per share (BVPS)2 | 19.94 | 36.88 | 58.20 | 53.09 | 50.07 | |
| Share price1, 3 | 73.67 | 93.27 | 89.55 | 120.93 | 130.55 | |
| Valuation Ratio | ||||||
| P/BV ratio4 | 3.69 | 2.53 | 1.54 | 2.28 | 2.61 | |
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Airbnb Inc. | 20.88 | 43.27 | — | — | — | |
| Booking Holdings Inc. | 16.35 | 20.46 | 11.61 | — | — | |
| Carnival Corp. & plc | 1.84 | 1.02 | 1.30 | 1.66 | — | |
| Chipotle Mexican Grill Inc. | 19.05 | 21.52 | 14.09 | — | — | |
| McDonald’s Corp. | — | — | — | — | — | |
| Starbucks Corp. | — | — | — | 72.30 | — | |
| P/BV Ratio, Sector | ||||||
| Consumer Services | 37.42 | 37.81 | 20.59 | — | — | |
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | 12.86 | 16.57 | 11.85 | — | — | |
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).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 5,085,556,000 ÷ 255,002,771 = 19.94
3 Closing price as at the filing date of Royal Caribbean Cruises Ltd. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 73.67 ÷ 19.94 = 3.69
5 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| P/BV ratio | The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company required rate of return and its actual rate of return. | Royal Caribbean Cruises Ltd. P/BV ratio increased from 2019 to 2020 and from 2020 to 2021. |