The Incorrect Discount between $RCL, NCLH and CCL.
Posted: Apr 29, 2024
- **Royal Caribbean** (RCL) is seen as significantly undervalued compared to **Carnival** (CCL) and **Norwegian Cruise Line** (NCLH). - RCL has a higher enterprise value and earnings than CCL and NCLH, but also higher debt. - CCL and NCLH have more shares outstanding after COVID, impacting their value. - RCL has better growth prospects and is lowering its debt, making it potentially a better investment. - RCL has 280 million diluted shares, CCL has 1.40 billion shares, and NCLH has 516 million shares.
Summarized top reddit comments: - RCL is significantly undervalued compared to NCLH and CCL due to earnings, debt, and shares outstanding. - The poster has 316 shares of RCL at an average price of $40. - CCL may do well in the future due to potential for debt reduction and earnings growth. - RCL may start dividend payouts again in 2026. - RCL diluted 10% in the last year, possibly impacting its stock performance. - The commenter's homebrew valuation calculator indicates that all three stocks are overvalued by about 40%. - It is advised by some not to invest in these stocks.
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