What Is RCL Fair Value?
Royal Caribbean Group (RCL) fair value estimate using multiple valuation models, updated daily.
As of October 14, 2026, Royal Caribbean Group (RCL) has a composite fair value estimate of $195.76 based on four valuation models: DCF (41% weight), Graham Number (29% weight), PEG (29% weight), and DDM (0% weight). The current market price is $274.31, suggesting the stock is overvalued by 28.6%.
Data as of October 14, 2026 (today)
Composite Fair Value
Overvalued3 of 4 models$195.76
vs. current price of $274.31(-28.6%)
How Is RCL Fair Value Calculated?
Four independent models estimate what RCL is worth. Each uses different inputs and assumptions. The composite blends them by weight.
RCL Intrinsic Value
Forward-looking models based on future cash flows
DCF (Discounted Cash Flow)
41% weightEstimates how much cash the company will generate over the next 10 years, then calculates what all that future cash is worth in today's dollars. Includes a 15% safety cushion. Try the standalone DCF calculator →
$175.51
-36.0%Overvalued
Inputs used
DDM (Dividend Discount Model)
0% weightIf a company pays you dividends, this model asks: how much are all those future dividend payments worth today? Only works for stocks that pay dividends. Try the intrinsic value calculator →
N/A
This stock does not pay a dividend, so the DDM cannot be applied. The composite adjusts by redistributing this weight to the other models.
RCL Fair Value
Current fundamentals: earnings, assets, and growth rate
Graham Number (Value Investing)
29% weightCreated by legendary investor Benjamin Graham. It looks at two things: how much the company earns (EPS) and what its assets are worth (Book Value), then calculates the maximum price a careful investor should pay. Try the fair value calculator →
$123.94
-54.8%Overvalued
Inputs used
PEG (Price/Earnings to Growth)
29% weightChecks if you're paying a fair price for the company's growth. A fast-growing company deserves a higher price than a slow one. This model finds the right price based on how fast earnings are growing.
$252.57
-7.9%Fair Value
Inputs used
What If You Change the Assumptions?
Drag the sliders to test different scenarios. Tap the ? buttons to learn what each input means.
Your DCF Fair Value
Current price $274.31 is 36.0% above this estimate
View 10-year cash flow projections
| Year | Projected FCF (Free Cash Flow) | Present Value |
|---|---|---|
| Year 1 | $3.65B | $3.26B |
| Year 2 | $4.17B | $3.33B |
| Year 3 | $4.76B | $3.39B |
| Year 4 | $5.44B | $3.46B |
| Year 5 | $6.21B | $3.53B |
| Year 6 | $7.09B | $3.60B |
| Year 7 | $8.09B | $3.67B |
| Year 8 | $9.23B | $3.74B |
| Year 9 | $10.54B | $3.82B |
| Year 10 | $12.03B | $3.89B |
| Terminal Value | $130.46B | $42.18B |
What Are RCL's Key Financial Metrics?
Earnings & Growth
Current Price
$274.31
EPS (TTM)
$16.20
Forward P/E
13.5
Profit Margin
23.5%
Cash & Balance Sheet
Free Cash Flow
-1.5B
EBITDA
6.9B
Book Value
$38.27
Total Debt
23.5B
What Do Analysts Say About RCL?
Low
$262.00
Average
$350.63
High
$425.00
Upside
+27.8%
RCL Fair Value FAQ
What is the fair value of RCL?
Based on our composite model (DCF 35%, Graham 25%, PEG 25%, DDM 15%), RCL's estimated fair value is $195.76. The stock is currently trading at $274.31, which makes it overvalued by our analysis.
How is RCL's fair value calculated?
We use four valuation methods: Discounted Cash Flow (DCF), Graham Number, PEG-based Fair Value, and Dividend Discount Model (for dividend-paying stocks). The composite score weights DCF at 35%, Graham and PEG at 25% each, and DDM at 15%. When a model can't be applied, its weight is redistributed proportionally.
Is RCL overvalued or undervalued?
Based on our analysis, RCL is overvalued. The current price of $274.31 is 28.6% above our estimated fair value of $195.76.
What do Wall Street analysts say about RCL?
27 analysts cover Royal Caribbean Group with a consensus rating of "Buy." The average price target is $350.63, ranging from $262.00 to $425.00. This implies 27.8% upside from the current price.