Norwegian Cruise Line Holdings Ltd (NCLH) is undervalued and Royal Caribbean Group (RCL) is slightly undervalued.
Against our estimates of intrinsic value, NCLH trades at the wider discount: a margin of safety of +71%, against +5% for RCL.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 7.7% (average of 3 methods) values the shares at $48.28; the price of $14.22 is 71% below that value, and 82% of that value comes from beyond year five.
Leak Score 41/100 on 3 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 | NCLH | RCL |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $14.22 | $234.89 |
| Intrinsic value | $48.28 | $247.87 |
| Margin of safety | +71% | +5% |
| Leak Score | 41/100 (3/12) | 45/100 (10/12) |
| Market cap | $6.5B | $63.0B |
| Revenue growth, 5 years | 50.3% | 52.0% |
| Operating margin | 15.8% | 27.1% |
| Net margin | 7.5% | 23.5% |
| Return on equity | 36.7% | 45.3% |
| Debt to equity | 6.21 | 2.30 |
| P/E | 9.0x | 14.5x |
| Forward P/E | 8.4x | 11.6x |
| P/B | 2.5x | 6.1x |
| Dividend yield | — | 2.3% |