Is Carnival Corp. overvalued or undervalued?

As of 21 March 2025, the valuation grade for Carnival Corp. has moved from attractive to fair, indicating a shift in its perceived value. The company appears to be fairly valued based on its current metrics, with a P/E ratio of 15, an EV to EBITDA of 9.72, and a PEG ratio of 0.05, suggesting that it may be undervalued relative to its growth prospects. In comparison, its peer Carnival Corp. has a P/E of 16.89 and an EV to EBITDA of 10.55, indicating that Carnival Corp. is slightly behind its peers in valuation metrics.
Despite the fair valuation, Carnival Corp. has demonstrated strong performance with a year-to-date return of 26.20%, significantly outperforming the S&P 500's return of 12.22% over the same period. Over the past year, the stock has returned 71.30%, compared to the S&P 500's 17.14%, reinforcing the notion that while the company is fairly valued, it has been a strong performer in the market.