Is Royal Caribbean Group overvalued or undervalued?

Nov 23 2025 11:10 AM IST
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As of November 21, 2025, Royal Caribbean Group's valuation has shifted to attractive due to strong financial metrics, including a P/E ratio of 23, a PEG ratio of 0.55, and a ROE of 44.74%, positioning it as undervalued compared to peers like Marriott and Hilton, while also outperforming the S&P 500 with a 3-year return of 349.44%.
As of 21 November 2025, the valuation grade for Royal Caribbean Group moved from fair to attractive, indicating a positive shift in its perceived value. The company appears to be undervalued based on its strong financial metrics, including a P/E ratio of 23, a PEG ratio of 0.55, and an impressive ROE of 44.74%.

In comparison to peers, Royal Caribbean's P/E ratio is lower than Marriott International's 28.88 and significantly lower than Hilton Worldwide's 50.31, suggesting that it may offer better value relative to its earnings potential. Additionally, the company's EV to EBITDA ratio of 17.08 is more favorable than Marriott's 17.39, reinforcing its attractive valuation. Notably, Royal Caribbean has outperformed the S&P 500 with a 3-year return of 349.44% compared to the index's 67.17%, further supporting the case for its undervaluation.
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