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The 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. As of today (2026-08-30), Royal Caribbean Group's 3-Year Sortino Ratio is 2.02.
Royal Caribbean Group (NYSE:RCL) 3-Year Sortino Ratio Explanation
The 3-Year Sortino Ratio inidicates the risk-adjusted return of an investment over the past three year. It is calculated as the annualized result of the average three-year monthly excess returns divided by the standard deviation of negative returns in the three-year period. The monthly excess return is the monthly investment return minus the monthly risk-free rate (typically the 10-year Treasury Constant Maturity Rate). If the risk-free rate for a specific region is not available, U.S. data is used by default.
Differnt from the Sharpe Ratio that penalizes both upside and downside volatility equally, the Sortino Ratio penalizes only those returns falling below a user-specified target or required rate of return. The expected returns here is set to the risk-free rate as well.
Royal Caribbean Group 3-Year Sortino Ratio Related Terms
RCL vs ABNB, VIK, CCL: 3-Year Sortino Ratio Comparison
For the Travel Services subindustry, Royal Caribbean Group's 3-Year Sortino Ratio, along with its competitors' market caps and 3-Year Sortino Ratio 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.
Royal Caribbean Group 3-Year Sortino Ratio vs Travel & Leisure Industry
For the Travel & Leisure industry and Consumer Cyclical sector, Royal Caribbean Group's 3-Year Sortino Ratio distribution charts can be found below:
* The bar in red indicates where Royal Caribbean Group's 3-Year Sortino Ratio falls into.
Royal Caribbean Group 3-Year Sortino Ratio Calculation
The 3-Year Sortino Ratio measures the risk-adjusted return of an investment asset or portfolio in the last three year, focusing specifically on downside risk rather than total risk. A stock / portfolio's 3-Year Sortino Ratio can be calculated by dividing the difference between the three-year average monthly returns of the investment and the risk-free rate, by the standard deviation of the downside risks over the past three year.
A downside risk is a potential loss from the asset or investment. The Downside risk here is measured by the downside deviation, which is the standard deviation of negative returns.
Royal Caribbean Group (RCL) has a 3-Year Sortino Ratio of 2.02 as of Aug. 30, 2026. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Royal Caribbean Group and its competitors.
Is Royal Caribbean Group's 3-Year Sortino Ratio too high?
Royal Caribbean Group's current 3-Year Sortino Ratio is 2.02. Overall, Royal Caribbean Group has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Royal Caribbean Group's 3-Year Sortino Ratio compare to ABNB and VIK?
Royal Caribbean Group's 3-Year Sortino Ratio of 2.02 can be compared against companies in the Travel & Leisure industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year Sortino Ratio for a Travel & Leisure company?
A good 3-Year Sortino Ratio depends on the Travel & Leisure industry context. However, 3-Year Sortino Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year Sortino Ratio mean?
A high 3-Year Sortino Ratio can signal that a stock is expensive relative to its fundamentals. 3-Year Sortino Ratio measures the additional return that an investor receives per unit of the downside risk over the past three years. View historical data for Royal Caribbean Group and its competitors. Royal Caribbean Group's current 3-Year Sortino Ratio is 2.02. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Royal Caribbean Group stock overvalued right now?
Based on GuruFocus' analysis, Royal Caribbean Group (RCL) is currently considered Fairly Valued. The stock's GF Value™ is $277.45, compared to a current price of $279.41 — trading 0.7% above its estimated fair value. The current 3-Year Sortino Ratio is 2.02. Royal Caribbean Group's overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year Sortino Ratio calculated?
3-Year Sortino Ratio is calculated from a company's financial statements. For Royal Caribbean Group (RCL), the current 3-Year Sortino Ratio is 2.02 as of Aug. 30, 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 Royal Caribbean Group (RCL) Overvalued in 2026?
Based on GuruFocus' analysis, Royal Caribbean Group stock appears to be overvalued.
The current stock price of $279.41 is trading 0.7% above its estimated GF Value™ of $277.45.
GuruFocus considers Royal Caribbean Group to be Fairly Valued.
Key valuation signals for RCL:
3-Year Sortino Ratio: 2.02
GF Value™: $277.45 vs. price of $279.41 (0.7% above fair value)
No single metric tells the full story. See the RCL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Royal Caribbean is the world's second-largest cruise company by revenues, operating 69 ships across five global and partner brands in the cruise vacation industry. Brands the company operates include Royal Caribbean International, Celebrity Cruises, and Silversea. The company also has a 50% investment in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. The selection of brands in the portfolio allows Royal to compete on the basis of innovation, quality of ships and service, variety of itineraries, choice of destinations, and price. The company completed the divestiture of its Azamara brand in 2021, plans to launch its new Celebrity River Cruise brand in 2027, and is set to operate eight private destination locations by 2028.
85GF Score
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