Royal Caribbean (RCL): Assessing Valuation After a Strong Multi‑Year Share Price Rebound

Royal Caribbean Cruises (RCL) has quietly moved higher, with the stock up about 10% over the past month despite a roughly 11% pullback in the past 3 months.

See our latest analysis for Royal Caribbean Cruises.

That recent 1 month share price return of almost 10% looks more like a pause in a much bigger move. With a 1 year total shareholder return of 25% and a remarkable 3 year total shareholder return above 400%, long term momentum still appears firmly intact.

If this kind of sustained rebound has you thinking about what else might be setting up for a strong run, now is a good time to explore fast growing stocks with high insider ownership.

With shares still trading below analyst targets and our intrinsic value estimate suggesting further upside, the key question now is whether Royal Caribbean remains undervalued or if the market has already priced in its next wave of growth.

Most Popular Narrative Narrative: 14.4% Undervalued

The most followed narrative sees Royal Caribbean’s fair value meaningfully above the last close of $283.26, framing today’s price as a discounted entry.

The analysts have a consensus price target of $351.652 for Royal Caribbean Cruises based on their expectations of its future earnings growth, profit margins and other risk factors. However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $420.0, and the most bearish reporting a price target of just $218.0.

Read the complete narrative.

Want to see the math behind this upside case? The story hinges on accelerating earnings power, rising margins and a future earnings multiple that might surprise you.

Result: Fair Value of $331.04 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, if macro uncertainty dents discretionary travel budgets or close in bookings soften further, yield pressure could quickly challenge this optimistic earnings path.

Find out about the key risks to this Royal Caribbean Cruises narrative.

Build Your Own Royal Caribbean Cruises Narrative

If you see the numbers differently, or simply want to dig into the details yourself, you can build a custom view in just minutes: Do it your way.

A great starting point for your Royal Caribbean Cruises research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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