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Royal Caribbean Cruises Ltd.

RCL Consumer Cyclical Travel Services

Royal Caribbean Cruises Ltd.’s revenue for fiscal 2025 (year ended December 2025) was $17.9 billion, up 8.80% from fiscal 2024.

Revenue
+8.80%
EPS
+11.6%
Free cash flow
+194.7%
Total debt
+10.2%

Quarter to September 2026, against a year earlier

327.08 4.35 +1.35%
Market cap
$86.3B
P/E
19.0×
Fwd P/E
17.4×
Dividend yield
1.70%
F-score
7/9
Altman Z
2.18
Beneish M
−2.86
Dividend safety
57/100
Overview Business Profile Earnings & Analysis
Financials
Income Statement Balance Sheet Cash Flow Metrics & Ratios
Valuation Filings

Royal Caribbean Cruises Ltd. (RCL) valuation and DCF model

What the price implies · reverse DCF

At $327.08 the price implies free cash flow after share-based pay growing 24.1% a year for ten years.

Free cash flow after share-based pay grew 28.8% a year over the last ten years. The price asks for close to its ten-year rate. The industry’s median company is priced for 8.3%.

In December 2017 the price assumed −0.2% a year; Royal Caribbean Cruises Ltd. went on to grow free cash flow after share-based pay −10.0% a year to FY2025.

Price implies
24.1%
Last 10 years, reported
28.8%
Industry median implies
8.3%

The headline discounts the last twelve months’ free cash flow after share-based pay at 9.0% for ten years and grows it 2.5% a year after that, the same for every company, so the figure compares across the market (how a reverse DCF works).

The other way round · DCF
The price needs
24.1% a year for ten years
$327.08
today’s price
Its base case
25.0% a year for five years, then 15.0%
$227.42
30.5% below today’s price

Both are growth in free cash flow after share-based pay, discounted at 9.0%, with 2.5% a year after year ten.

Base case on its own ten-year record Royal Caribbean Cruises Ltd.’s own growth, carried forward

Its assumptions

Powerpack lets you start from a scenario and type over any of them.

The base case’s inputs, which Powerpack lets you change
1 · Cash flow to equity
the four quarters to September 2026, from the 10-Q and 10-K filings, before share-based pay

Yearly growth in cash flow. It usually slows as the company matures.

Today’s price implies free cash flow after share-based pay growing 24.1% a year for ten years.

2 · Rates

Cost of equity is the yearly return shareholders require, typically 8–11%. Terminal growth is growth forever after year 10, usually near long-run inflation, 2–3%.

3 · Per share

Diluted shares outstanding. Net debt, under Advanced inputs, is taken off before dividing.

Advanced inputs
Free cash flow Revenue and margin
negative is net cash
new shares the cash flow does not pay for

Against Royal Caribbean Cruises Ltd.’s own cost of capital: risk-free 4.3% + beta 1.87 × equity premium 4.5% = 12.7% cost of equity; weighted, 12.7%.

Use 12.7%
Equity value $61.46b ▼ below market cap $88.39b
Base case value per share $227.42 equity value ÷ 270.25m shares
Current price $327.08 market price per share
Below today’s price 30.5% downside at the base case’s assumptions

How we got there$26.66b 10 years of cash to equity+$56.30b terminal value−$21.50b net debt=$61.46b equity value÷270.25m shares=$227.42 per share

Valuation against its own history

Today’s multiple against its 5- and 10-year averages and the industry median (Travel Services).

Multiple Current 5Y avg 10Y avg vs 10Y avg Industry median vs industry 10Y range
P/E 19.05× 18.15× 16.50× 15% above 19.05× 0% above
P/FCF 57.05× 48.36× 151.58× 62% below 13.14× 334% above
P/B 7.23× 6.60× 4.52× 60% above 2.71× 166% above
EV/EBITDA 14.99× 19.36× 15.79× 5% below 13.28× 13% above
EV/Sales 5.63× 4.68× 7.30× 23% below 3.26× 72% above
P/E P/FCF P/B EV/EBITDA EV/Sales
11.73×251.11×490.49×729.88×10Y avg 151.58×2016201720192023202420252026

RCL trades at 57.05× P/FCF, against a 10-year average of 151.58× (range 10.17×–809.11×). That is dearer than 67% of the last 6 year-end readings; re-rating to the average implies $869.08 per share.

Every growth rate on this page is the business’s — its cash flow, FFO or dividend — never its share price’s. A discounted-cash-flow model is only as good as its assumptions. Figures from the 10-K and 10-Q filings. Not investment advice.