Royal Caribbean Cruises Ltd. (RCL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-355.9%

-$826.91

vs $323.18 price

Levered DCF

-$1,495.49

After debt service

Piotroski score

6 / 9

Average

Altman Z-score

2.37

Grey zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	17.73×	20.97×	19.53×	-5.85×	-3.68×	-2.76×	14.88×	11.37×
P/B	7.53×	7.96×	7.02×	4.39×	3.81×	1.83×	2.3×	1.85×
P/S	4.21×	3.65×	2.38×	1.43×	12.64×	7.25×	2.55×	2.17×
EV / EBITDA	13.89×	13.25×	12.01×	56.36×	-14.34×	-8.85×	11.07×	9.76×
Gross margin	46.8%	47.5%	44.1%	25.2%	-78.8%	-25.2%	44.6%	44.6%
Operating margin	27.4%	24.9%	20.7%	-8.7%	-252.6%	-208.3%	19.0%	20.0%
Net margin	23.8%	17.5%	12.2%	-24.4%	-343.3%	-262.5%	17.2%	19.1%
Current ratio	0.18×	0.17×	0.19×	0.37×	0.49×	0.95×	0.15×	0.17×
Debt / equity	2.26×	2.75×	4.68×	8.36×	4.27×	2.28×	0.96×	0.97×
Interest coverage	4.95×	2.58×	2.05×	-0.56×	-3×	-5.45×	5.1×	5.68×
Dividend yield	0.3%	0.2%	0.0%	0.0%	0.0%	2.0%	2.2%	2.6%
Payout ratio	6.2%	3.7%	0.0%	0.0%	0.0%	-5.6%	32.1%	29.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	42.6%	38.0%	35.9%	-75.1%	-103.4%	-66.2%	15.4%	16.3%
Return on invested capital	14.9%	14.2%	10.5%	-2.8%	-14.2%	-15.7%	8.3%	8.2%
Return on assets	10.3%	7.8%	4.8%	-6.4%	-16.3%	-17.9%	6.2%	6.5%
Free cash flow yield	1.6%	3.3%	1.7%	-17.7%	-21.2%	-35.6%	2.5%	-0.9%
Earnings yield	5.7%	4.8%	5.1%	-17.1%	-27.2%	-36.2%	6.7%	8.8%
Enterprise value	$97.4B	$80.6B	$54.8B	$34.7B	$38.4B	$32.3B	$39.4B	$31.1B
Net debt / EBITDA	3.11×	3.36×	4.74×	35.87×	-7.1×	-4.47×	3.23×	3.3×
Cash conversion cycle (days)	-20	-19	-15	-1	44	16	-14	-11