Is Carnival Corp. overvalued or undervalued?

As of 2 May 2025, Carnival Corp. has moved from an attractive to a fair valuation grade. The company is currently fairly valued, with a P/E ratio of 15, an EV to EBITDA of 9.72, and a PEG ratio of 0.05. In comparison to its peers, Norwegian Cruise Line Holdings Ltd. is considered attractive with a P/E of 8.97, while Wyndham Hotels & Resorts, Inc. is deemed expensive with a P/E of 19.83.
Despite the fair valuation, Carnival Corp. has shown strong performance in the past year, with a stock return of 49.60% compared to the S&P 500's 10.26%. This performance, along with its solid ROE of 25.59% and ROCE of 10.81%, suggests that while the stock is fairly valued, it has the potential for further growth in the future.