Is Royal Caribbean Group overvalued or undervalued?

As of 21 November 2025, the valuation grade for Royal Caribbean Group has moved from fair to attractive, indicating a positive shift in its perceived value. The company appears undervalued, supported by key ratios such as a P/E ratio of 23, a PEG ratio of 0.55, and an EV to EBITDA ratio of 17.08. 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 it may be a more appealing investment within the industry.
The stock has shown strong performance over the long term, with a 3-year return of 330.69%, significantly outperforming the S&P 500's 67.17% return over the same period. This trend reinforces the attractiveness of Royal Caribbean Group as an investment opportunity.