Carnival Corporation offers cruise services under the Carnival Cruise Lines, Holland America Line, Princess Cruises, and Seabourn brand names in North America; and AIDA Cruises, Costa Cruises, Cunard, and P&O Cruises names in Europe, Australia, and Asia. The company was founded in 1972 and is based in Miami, Florida.
CCL Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for Carnival Corp with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that Carnival Corp ranked in the 3th percentile in terms of potential gain offered. Our DCF analysis suggests the stock is overvalued by about 99%. The most interesting components of our discounted cash flow analysis for Carnival Corp ended up being:
Its compound free cash flow growth rate, as measured over the past 5.83 years, is -0.3% -- higher than only 5.3% of stocks in our DCF forecasting set.
Carnival Corp's weighted average cost of capital (WACC) is 6%; for context, that number is higher than only 4.78% of tickers in our DCF set.
As a business, Carnival Corp experienced a tax rate of about 2% over the past twelve months; relative to its sector (Industrials), this tax rate is higher than only 18.09% of stocks generating free cash flow.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
HQI, NNBR, SEII, SHIP, and SRCL can be thought of as valuation peers to CCL, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.