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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 74.07 (-0.55% today). The market cap for Royal Caribbean Cruises Ltd. is 14729.91, and is in the sector Services, and Resorts & Casinos industry. The target price for Royal Caribbean Cruises Ltd. is 95. Currently Royal Caribbean Cruises Ltd. is trading with a P/E of 22.76, and a forward P/E of 10.61. Average volume for Royal Caribbean Cruises Ltd. is 2285.62 and so far today it is 708083.

Performance in the last year for Royal Caribbean Cruises Ltd. has been -15.76%. For EPS growth, Royal Caribbean Cruises Ltd. has seen a growth of -11.90%, and is looking to grow in the next year to 14.17%. More long term stats show that EPS growth has been 5.00% over the last five years and could be 20.03% for the next five years. Royal Caribbean Cruises Ltd. has seen sales growth quarter over quarter at 2.30%, with EPS growth quarter over quarter at 27.00%. The 20-day simple moving average is 2.18%, with the 200-day simple moving average coming to -8.17%.

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 -25.67%. With Royal Caribbean Cruises Ltd. trading at 74.07, the dividend yield is 2.01%, and the EPS is 3.27.

So could Royal Caribbean Cruises Ltd., be undervalued? Well as said before P/E is 22.76. The PEG is 1.14, P/S is 1.75 and the P/B is at 1.97. The P/cash is 84.07, with P/free cash flow at *TBA.

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 1.12, and total debt/equity at 1.23.

In terms of margins, Royal Caribbean Cruises Ltd. has a gross margin of 39.10%, an operating margin of 11.30% and a profit margin of 9.10%.Payout ratio for Royal Caribbean Cruises Ltd. is 42.70%. Return on assets come to 3.60% with return on investment coming to 5.30%.

Insider ownership for Royal Caribbean Cruises Ltd., is at 1.20% and institutional ownership comes to 78.10%. Outstanding shares are at 197.77. While shares float is 167.91. The float short is currently 7.98%, and short ratio is 5.86.

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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