Expedia Group Inc (EXPE) is fairly valued and Royal Caribbean Group (RCL) is slightly undervalued.
Against our estimates of intrinsic value, RCL trades at the wider discount: a margin of safety of +5%, against -2% for EXPE.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 10.8% (average of 3 methods) values the shares at $274.56; the price of $280.70 is 2% above that value, and 70% of that value comes from beyond year five.
Leak Score 65/100 on 10 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 | EXPE | RCL |
|---|---|---|
| Verdict | Fairly valued | Slightly undervalued |
| Price | $280.70 | $234.89 |
| Intrinsic value | $274.56 | $247.87 |
| Margin of safety | -2% | +5% |
| Leak Score | 65/100 (10/12) | 45/100 (10/12) |
| Market cap | $33.7B | $63.0B |
| Revenue growth, 5 years | 23.2% | 52.0% |
| Operating margin | 16.6% | 27.1% |
| Net margin | 13.0% | 23.5% |
| Return on equity | 199.1% | 45.3% |
| Debt to equity | 4.70 | 2.30 |
| P/E | 17.5x | 14.5x |
| Forward P/E | 11.5x | 11.6x |
| P/B | 27.9x | 6.1x |
| Dividend yield | 0.5% | 2.3% |