Royal Caribbean Cruises Ltd. (RCL) intrinsic value & 10-year financials
Royal Caribbean Cruises Ltd. (RCL) has a Graham intrinsic value of $420.18 per share. At $277.68 on Oct 17, 2026, the stock trades 34% below that value. Over the last 10 fiscal years revenue grew 8.7% a year to $17.9B, with an average return on invested capital of 3.6%.
- Graham intrinsic value
- $420.18
- Share price (Oct 17, 2026)
- $277.68
- Price vs Graham value
- 34% below
- Market cap
- $76.1B
- Revenue (FY2025)
- $17.9B
- Revenue growth (10-yr CAGR)
- 8.7%
- ROIC (10-yr avg)
- 3.6%
- Free cash flow (FY2025)
- $1.2B
RCL 10-year financial history
| Fiscal year | Revenue | Net income | EPS (diluted) | Free cash flow | Operating margin | ROIC |
|---|---|---|---|---|---|---|
| FY2025 | $17.9B | $4.3B | $15.61 | $1.2B | 27.4% | 18.2% |
| FY2024 | $16.5B | $2.9B | $10.94 | $2.0B | 24.9% | 16.3% |
| FY2023 | $13.9B | $1.7B | $6.31 | $580.0M | 20.7% | 12.4% |
| FY2022 | $8.8B | -$2.2B | -$8.45 | -$2.2B | -8.6% | -3.5% |
| FY2021 | $1.5B | -$5.3B | -$20.89 | -$4.1B | -252.6% | -17.3% |
| FY2020 | $2.2B | -$5.8B | -$27.05 | -$5.7B | -208.3% | -26.7% |
| FY2019 | $11.0B | $1.9B | $8.95 | $691.7M | 19.0% | 9.5% |
| FY2018 | $9.5B | $1.8B | $8.56 | -$180.9M | 20.0% | 10.0% |
| FY2017 | $8.8B | $1.6B | $7.53 | $2.3B | 19.9% | 9.6% |
| FY2016 | $8.5B | $1.3B | $5.93 | $22.3M | 17.4% | 7.5% |
Source: annual 10-K filings on SEC EDGAR. Figures in USD.
Executive summary
Royal Caribbean Group is a consistent compounder, expanding top-line revenue at 8.7% annually over the past decade.
Royal Caribbean Group has historically struggled to out-earn its cost of capital, averaging just 3.6% ROIC.
Over the decade, Royal Caribbean Group shows that the company has leveraged its balance sheet to sustain operations.
Benjamin Graham lens
Under Benjamin Graham's formula using SEC EDGAR fundamentals, Royal Caribbean Group is modeled at 11.3% normalized earnings growth with a 5.1% bond-yield adjustment. The resulting Graham intrinsic value estimate is $420.18 per share.