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).
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- Income Statement
- Statement of Comprehensive Income
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Solvency Ratios
- Dividend Discount Model (DDM)
- Operating Profit Margin since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
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Current Valuation Ratios
Royal Caribbean Cruises Ltd., current price multiples
| Royal Caribbean Cruises Ltd. | Airbnb Inc. | Booking Holdings Inc. | Chipotle Mexican Grill Inc. | McDonald’s Corp. | Starbucks Corp. | Consumer Services | Consumer Discretionary | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||
| Current share price (P) | |||||||||||
| No. shares of common stock outstanding | |||||||||||
| Earnings per share (EPS) | |||||||||||
| Operating profit per share | |||||||||||
| Sales per share | |||||||||||
| Book value per share (BVPS) | |||||||||||
| Valuation Ratios (Price Multiples) | |||||||||||
| Price to sales (P/S) | |||||||||||
| Price to book value (P/BV) | |||||||||||
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
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Price to earnings (P/E) | ||||||
| Price to operating profit (P/OP) | ||||||
| Price to sales (P/S) | ||||||
| Price to book value (P/BV) |
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).
- Price to Earnings (P/E) Ratio
- The Price to Earnings ratio demonstrated a decreasing trend from 17.17 in 2017 to 9.96 in 2019. There is no data available for 2020 and 2021, which suggests either missing values or non-applicability. The decline over the three observed years indicates that the company's stock price decreased relative to its earnings, potentially reflecting reduced market optimism or earnings growth surpassing price appreciation.
- Price to Operating Profit (P/OP) Ratio
- This ratio similarly declined from 16.00 in 2017 to 8.99 in 2019, paralleling the trend seen in the P/E ratio. The absence of data for 2020 and 2021 aligns with the P/E ratio gap. The declining P/OP ratio could signify improving operating profit visibility or valuation adjustments by the market during the period analyzed.
- Price to Sales (P/S) Ratio
- The Price to Sales ratio decreased markedly from 3.18 in 2017 to 1.71 in 2019. However, there was a sharp and significant increase in 2020 and 2021, reaching 10.03 and 12.26 respectively. This pronounced rise indicates that the market price became substantially higher compared to sales, which could reflect expectations of a strong recovery or changes in sales volumes possibly affected by extraordinary circumstances.
- Price to Book Value (P/BV) Ratio
- The Price to Book Value ratio showed a downward trend from 2.61 in 2017 to a low of 1.54 in 2019, followed by a recovery to 2.53 in 2020 and a further increase to 3.69 in 2021. This pattern suggests that the market valuation compared to the company's net asset value declined initially but then rebounded considerably, which may be related to asset revaluations or shifts in investor perception of the company's underlying value.
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 | ||||||
| Selected Financial Data (US$) | ||||||
| Net income (loss) attributable to Royal Caribbean Cruises Ltd. (in thousands) | ||||||
| Earnings per share (EPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/E ratio4 | ||||||
| Benchmarks | ||||||
| P/E Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/E Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/E Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31).
1 Data adjusted for splits and stock dividends.
2 2021 Calculation
EPS = Net income (loss) attributable to Royal Caribbean Cruises Ltd. ÷ No. shares of common stock outstanding
= ÷ =
3 Closing price as at the filing date of Royal Caribbean Cruises Ltd. Annual Report.
4 2021 Calculation
P/E ratio = Share price ÷ EPS
= ÷ =
5 Click competitor name to see calculations.
The financial data presents notable trends and shifts over the five-year period ending in 2021. The share price exhibits a declining trajectory from 130.55 US$ in 2017 to 73.67 US$ in 2021, indicating a significant reduction in market valuation. This decline is particularly pronounced after 2019, where the price drops sharply from 89.55 US$ to 73.67 US$ by the end of 2021.
Earnings per share (EPS) follow a similar pattern. The EPS increased moderately from 7.6 US$ in 2017 to 8.99 US$ in 2019, reflecting steady profitability during this period. However, there is a drastic reversal in 2020 and 2021, where EPS turns negative, reaching -24.41 US$ and -20.63 US$, respectively. This suggests significant losses, likely influenced by extraordinary or adverse conditions during these years.
The price-to-earnings (P/E) ratio declines from 17.17 in 2017 to 9.96 in 2019, consistent with the decreasing share price and rising earnings per share in this timeframe. However, P/E ratios are not reported for 2020 and 2021, which is typically due to the negative earnings reported during these years, rendering the P/E ratio either undefined or irrelevant as a valuation measure under negative profitability.
- Trend summary:
- Share price began a downward trend after 2017, accelerating post-2019.
- EPS showed growth until 2019 before plunging into significant losses in 2020 and 2021.
- P/E ratio declined steadily until 2019 but is unavailable for years with negative earnings.
Overall, the data reflects a period of stability and growth up to 2019, followed by a marked financial deterioration in earnings and market valuation, with losses dominating the last two years of the analyzed period.
Price to Operating Profit (P/OP)
Royal Caribbean Cruises Ltd., historical P/OP calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Operating income (loss) (in thousands) | ||||||
| Operating profit per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/OP ratio4 | ||||||
| Benchmarks | ||||||
| P/OP Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/OP Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/OP Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
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 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
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price experienced a declining trend over the analyzed period. It decreased from $130.55 at the end of 2017 to $73.67 at the end of 2021. A notable drop occurred between 2018 and 2019, and the price remained relatively low through to the end of 2021.
- Operating Profit Per Share
- Operating profit per share showed an increasing trend from 2017 to 2019, rising from $8.16 to $9.97. However, there was a significant reversal starting in 2020, with operating profit per share turning negative at -$19.37 and slightly improving to -$15.18 in 2021. This sharp decline indicates a considerable operational loss during the latter years, particularly driven by the challenging business environment in 2020.
- Price to Operating Profit Ratio (P/OP)
- The P/OP ratio decreased from 16 in 2017 to 8.99 in 2019, signaling improved valuation relative to operating profit. Data for 2020 and 2021 are unavailable due to the negative operating profit per share, which typically makes this ratio invalid or not applicable.
Price to Sales (P/S)
Royal Caribbean Cruises Ltd., historical P/S calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Revenues (in thousands) | ||||||
| Sales per share2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/S ratio4 | ||||||
| Benchmarks | ||||||
| P/S Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/S Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/S Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
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
= ÷ =
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
= ÷ =
5 Click competitor name to see calculations.
The financial data over the given periods indicate several notable trends and shifts in the company's performance and market valuation.
- Share Price
- The share price demonstrates a downward trajectory from 2017 to 2021. Initially valued at $130.55 at the end of 2017, the price decreased to $120.93 in 2018 and further declined to $89.55 in 2019. Although there was a slight uptick to $93.27 in 2020, the share price fell again to $73.67 by the end of 2021. The overall trend reflects weakening investor confidence or market challenges impacting the company during this timeframe.
- Sales per Share
- Sales per share showed an increasing trend from 2017 to 2019, rising from $41.07 to $52.40. However, there was a significant decline beginning in 2020, with sales per share dropping to $9.30 and further decreasing to $6.01 in 2021. This marked reduction indicates a substantial contraction in sales revenue per individual share, which may be attributed to operational disruptions or decreased demand.
- Price-to-Sales (P/S) Ratio
- The P/S ratio exhibited a contrasting pattern compared to share price and sales per share. From 2017 to 2019, the ratio declined from 3.18 to 1.71, reflecting a decreasing market valuation relative to sales. However, a sharp increase occurred in 2020 and 2021, with the P/S ratio rising dramatically to 10.03 and then 12.26 respectively. This surge is likely a result of share price not declining in proportion to the steep drop in sales per share, indicating potential overvaluation or investor speculation despite weakened sales performance.
Price to Book Value (P/BV)
Royal Caribbean Cruises Ltd., historical P/BV calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | ||||||
| Selected Financial Data (US$) | ||||||
| Shareholders’ equity (in thousands) | ||||||
| Book value per share (BVPS)2 | ||||||
| Share price1, 3 | ||||||
| Valuation Ratio | ||||||
| P/BV ratio4 | ||||||
| Benchmarks | ||||||
| P/BV Ratio, Competitors5 | ||||||
| Airbnb Inc. | ||||||
| Booking Holdings Inc. | ||||||
| Chipotle Mexican Grill Inc. | ||||||
| McDonald’s Corp. | ||||||
| Starbucks Corp. | ||||||
| P/BV Ratio, Sector | ||||||
| Consumer Services | ||||||
| P/BV Ratio, Industry | ||||||
| Consumer Discretionary | ||||||
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
= ÷ =
3 Closing price as at the filing date of Royal Caribbean Cruises Ltd. Annual Report.
4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= ÷ =
5 Click competitor name to see calculations.
- Share Price
- The share price exhibited a downward trend over the analyzed period. Starting at $130.55 at the end of 2017, the price decreased steadily through 2018 and 2019, with a notable decline to $89.55. In 2020, despite the global challenges, the share price showed a slight recovery to $93.27 but then declined further to $73.67 by the end of 2021.
- Book Value per Share (BVPS)
- The book value per share showed a generally declining trend with a significant drop in recent years. From $50.07 in 2017, BVPS increased slightly to $53.09 in 2018 and further to $58.20 in 2019. However, it sharply decreased to $36.88 in 2020 and continued to fall to $19.94 in 2021, indicating a significant reduction in net asset value per share.
- Price-to-Book Value Ratio (P/BV)
- The P/BV ratio decreased from 2.61 in 2017 to its lowest at 1.54 in 2019, reflecting a share price adjustment relative to the book value. This indicates that in 2019, the market valued the company close to its net asset value. However, the ratio increased again in 2020 to 2.53 and reached 3.69 in 2021, suggesting that despite the declining BVPS, the market maintained or increased confidence in the stock's valuation relative to its book value during this period.