Booking Holdings Inc (BKNG) is undervalued and Royal Caribbean Group (RCL) is slightly undervalued.
Against our estimates of intrinsic value, BKNG trades at the wider discount: a margin of safety of +39%, against +5% for RCL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 9.8% (average of 3 methods) values the shares at $268.01; the price of $164.22 is 39% below that value, and 75% of that value comes from beyond year five.
Leak Score 97/100 on 8 of 12 signals
Discounting its cash flows at 11.5% (average of 3 methods) values the shares at $247.87; the price of $234.89 is 5% below that value, and 69% of that value comes from beyond year five.
Leak Score 45/100 on 10 of 12 signals
| Metric | BKNG | RCL |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $164.22 | $234.89 |
| Intrinsic value | $268.01 | $247.87 |
| Margin of safety | +39% | +5% |
| Leak Score | 97/100 (8/12) | 45/100 (10/12) |
| Market cap | $123.4B | $63.0B |
| Revenue growth, 5 years | 31.7% | 52.0% |
| Operating margin | 35.2% | 27.1% |
| Net margin | 25.5% | 23.5% |
| Return on equity | — | 45.3% |
| Debt to equity | — | 2.30 |
| P/E | 18.2x | 14.5x |
| Forward P/E | 13.3x | 11.6x |
| P/B | — | 6.1x |
| Dividend yield | 0.9% | 2.3% |