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GuruFocus has detected 4 Warning Signs with Royal Caribbean Cruises Ltd $RCL.
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Royal Caribbean Cruises Ltd (NYSE:RCL)
Median PS Value
$51.04 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Royal Caribbean Cruises Ltd's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was $39.259. Royal Caribbean Cruises Ltd's 10-Year median P/S ratio is 1.30. Therefore, the Median P/S Value for today is $51.04.

As of today, Royal Caribbean Cruises Ltd's share price is $106.60. Royal Caribbean Cruises Ltd's median P/S value is $51.04. Therefore, Royal Caribbean Cruises Ltd's Price to Median P/S Value Ratio for today is 2.09.

RCL' s Price-to-Median-PS-Value Range Over the Past 10 Years
Min: 0.35   Max: 2.74
Current: 2.09

0.35
2.74

During the past 13 years, the highest Price to Median P/S Value Ratio of Royal Caribbean Cruises Ltd was 2.74. The lowest was 0.35. And the median was 1.18.

RCL's Price-to-Median-PS-Value is ranked lower than
88% of the 666 Companies
in the Global Leisure industry.

( Industry Median: 1.09 vs. RCL: 2.09 )

Definition

Royal Caribbean Cruises Ltd's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=39.259*1.30
=51.04

10-Year Median P/S Ratio is 1.30.
Royal Caribbean Cruises Ltd's revenue per share for the trailing twelve months (TTM) ended in Dec. 2016 was 8.803 (Mar. 2016 ) + 9.741 (Jun. 2016 ) + 11.887 (Sep. 2016 ) + 8.828 (Dec. 2016 ) = $39.259.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company’s value.

Royal Caribbean Cruises Ltd's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=106.60/51.04
=2.09

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Intrinsic Value (DCF Projected), Intrinsic Value (DCF), Intrinsic Value (DE), Graham Number, GAVA


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Royal Caribbean Cruises Ltd Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
medpsvalue 37.3339.6335.6640.3744.6945.6446.8747.0148.8451.04

Royal Caribbean Cruises Ltd Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
medpsvalue 47.3247.0146.6847.2748.2348.8449.6050.1450.7751.04
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