CarnivalFRA:3B5 -2.51%75 Pretax Margin % is 8.33% as of May. 2026, which is 8% below its 10-year median of 9.03. GuruFocus rates FRA:3B5 with a GF Score™ of 75/100 and a GF Value™ of €20.88 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 845 Travel & Leisure companies, Carnival ranks better than 64.5% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Carnival's Pre-Tax Income for the
three
months ended in May. 2026 was €475 Mil. Carnival's Revenue for the
three
months ended in May. 2026 was €5,704 Mil. Therefore, Carnival's pretax margin for the quarter that ended in May. 2026 was 8.33%.
The historical rank and industry rank for Carnival's Pretax Margin % or its related term are showing as below:
FRA:3B5'
s Pretax Margin % Range Over the Past 10 Years
Min: -499.06 Med: 9.03 Max: 17.26
Current: 11.34
FRA:3B5's Pretax Margin % is ranked better than 64.5% of 845
companies
in the Travel & Leisure industry
Industry Median: 6.11
vs FRA:3B5: 11.34
Carnival (FRA:3B5) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Carnival Pretax Margin % Related Terms
Carnival Pretax Margin % Historical Data
* Premium members only.
The historical data trend for Carnival's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:3B5 vs VIK, TCOM, EXPE: Pretax Margin % Comparison
For the Travel Services subindustry, Carnival's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Carnival Pretax Margin % vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Carnival's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Carnival's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Carnival (FRA:3B5) has a Pretax Margin % of 8.33% as of May. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Carnival and its competitors. This is near median its historical median of 9.03. According to the industry distribution chart, Carnival ranks #300 out of 845 companies in the Travel & Leisure industry, placing it in the top 35.5%.
Is Carnival's Pretax Margin % too high?
Carnival's current Pretax Margin % of 8.33% is near median its 10-year median of 9.03. The Travel & Leisure industry median Pretax Margin % is 6.11. Carnival's value of 8.33% is 36.3% above this industry median. Based on the distribution chart, Carnival ranks #300 out of 845 companies in the Travel & Leisure industry, which is above the industry midpoint. Overall, Carnival has a GF Score™ of 75/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Carnival's Pretax Margin % compare to VIK and TCOM?
According to the Travel & Leisure industry distribution chart, Carnival ranks #300 out of 845 companies for Pretax Margin %. This puts Carnival in the upper half of its industry. The industry median Pretax Margin % is 6.11. Carnival's value of 8.33% is 36.3% above this benchmark. While the company's 10-year median is 9.03 vs. the industry median of 6.11, Carnival has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for a Travel & Leisure company?
The median Pretax Margin % among Travel & Leisure companies is 6.11, based on 845 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Carnival's current Pretax Margin % of 8.33% is 36.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Carnival and its competitors. For the Travel & Leisure industry, the median Pretax Margin % is 6.11 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Carnival's current Pretax Margin % is 8.33%, which is near median its own 10-year median of 9.03. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Carnival stock overvalued right now?
Based on GuruFocus' analysis, Carnival (FRA:3B5) is currently considered Modestly Overvalued. The stock's GF Value™ is €20.88, compared to a current price of €24.90 — trading 19.3% above its estimated fair value. The current Pretax Margin % is 8.33%, which is near median its 10-year median of 9.03 and 36.3% above the Travel & Leisure industry median of 6.11. Carnival's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Carnival (FRA:3B5), the current Pretax Margin % is 8.33% as of May. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Carnival (FRA:3B5) Overvalued in 2026?
Based on GuruFocus' analysis, Carnival stock appears to be overvalued.
The current stock price of €24.90 is trading 19.3% above its estimated GF Value™ of €20.88.
GuruFocus considers Carnival to be Modestly Overvalued.
Key valuation signals for FRA:3B5:
Pretax Margin %: 8.33% (near median its 10-year median of 9.03)
GF Value™: €20.88 vs. price of €24.90 (19.3% above fair value)
Industry Position: 36.3% above the Travel & Leisure median (#300 of 845)
No single metric tells the full story. See the FRA:3B5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Carnival is the largest global cruise company, with nearly 100 ships in service. Its portfolio of brands includes Carnival Cruise Lines, Holland America, Princess Cruises, and Seabourn in North America; P&O Cruises and Cunard Line in the United Kingdom; Aida in Germany; Costa Cruises in Southern Europe. It recently folded its P&O Australia brand into Carnival. The firm also owns Holland America Princess Alaska Tours in Alaska and the Canadian Yukon. Carnival's brands attracted nearly 14 million guests in 2025.
75GF Score
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