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Is this Large Market Cap Stock target price reasonable for Royal Caribbean Cruises Ltd. (NYSE:RCL)?

The company in question is, Royal Caribbean Cruises Ltd. (NYSE:RCL) currently with a stock price of 72.87 (-0.23% today). The market cap for Royal Caribbean Cruises Ltd. is 15587.47, and is in the sector Services, and Resorts & Casinos industry. The target price for Royal Caribbean Cruises Ltd. is 97.65. Currently Royal Caribbean Cruises Ltd. is trading with a P/E of 22.32, and a forward P/E of 10.2. Average volume for Royal Caribbean Cruises Ltd. is 2205.28 and so far today it is 565355.

Performance in the last year for Royal Caribbean Cruises Ltd. has been -8.99%. For EPS growth, Royal Caribbean Cruises Ltd. has seen a growth of -11.90%, and is looking to grow in the next year to 14.84%. More long term stats show that EPS growth has been 5.00% over the last five years and could be 20.53% for the next five years. Royal Caribbean Cruises Ltd. has seen sales growth quarter over quarter at 5.60%, with EPS growth quarter over quarter at 124.60%. The 20-day simple moving average is -0.69%, with the 200-day simple moving average coming to -10.49%.

Since the IPO date for Royal Caribbean Cruises Ltd. on the 4/28/1993, Royal Caribbean Cruises Ltd. has seen performance year to date to be -27.11%. With Royal Caribbean Cruises Ltd. trading at 72.87, the dividend yield is 2.05%, and the EPS is 3.27.

So could Royal Caribbean Cruises Ltd., be undervalued? Well as said before P/E is 22.32. The PEG is 1.09, P/S is 1.86 and the P/B is at 2.01. The P/cash is 132.77, with P/free cash flow at 121.87.

Royal Caribbean Cruises Ltd. ability to deal with debt shows that the current ratio is 0.2, and the quick ratio is 0.2. This is with long term debt/equity at 0.99, and total debt/equity at 1.1.

In terms of margins, Royal Caribbean Cruises Ltd. has a gross margin of 39.10%, an operating margin of 11.10% and a profit margin of 8.60%.Payout ratio for Royal Caribbean Cruises Ltd. is 43.40%. Return on assets come to 3.40% with return on investment coming to 5.30%.

Insider ownership for Royal Caribbean Cruises Ltd., is at 1.20% and institutional ownership comes to 78.20%. Outstanding shares are at 213.41. While shares float is 167.91. The float short is currently 7.60%, and short ratio is 5.78.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Tony Dabbs

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