WEBULL

Carnival (CCL): Assessing Valuation After a Recent Three-Month Share Price Pullback

Simply Wall St · 1d ago

Carnival Corporation & (CCL) has quietly slipped about 18% over the past 3 months, even as earnings and net income continue to grow. This has created an interesting gap between sentiment and fundamentals.

See our latest analysis for Carnival Corporation &.

Zooming out, that 90 day share price pullback sits against a modest year to date share price gain and a still impressive three year total shareholder return. This suggests momentum has cooled but the longer term recovery story is intact.

If Carnival’s rebound has you rethinking travel and leisure plays, this could be a good moment to scan other cruise lines and travel operators through fast growing stocks with high insider ownership.

With earnings still climbing, shares trading below analyst targets and a solid multiyear rebound in place, investors now face the key question: Is Carnival undervalued here, or is the market already pricing in the next leg of growth?

Most Popular Narrative: 27.7% Undervalued

Based on the most followed valuation storyline, Carnival’s fair value meaningfully exceeds the recent 25.87 closing price, implying the market is discounting its earnings trajectory.

The analysts are assuming Carnival Corporation & 's revenue will grow by 3.8% annually over the next 3 years.

Analysts assume that profit margins will increase from 9.7% today to 12.7% in 3 years time.

Read the complete narrative.

Want to see what powers that valuation gap? This narrative leans on steadily rising earnings, richer margins, and a future earnings multiple that sidesteps typical hospitality benchmarks. Curious how those projections stack up over the next cycle and what they imply for upside from here? Open the full narrative to see the numbers behind this call.

Result: Fair Value of $35.76 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, elevated geopolitical instability and Carnival’s still sizeable debt load could pressure bookings, margins, and cash flows and could challenge the optimistic valuation narrative.

Find out about the key risks to this Carnival Corporation & narrative.

Build Your Own Carnival Corporation & Narrative

If you see the story differently, or would rather dig into the numbers yourself, you can build a personalized view in under three minutes: Do it your way.

A great starting point for your Carnival Corporation & research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Before you move on, lock in your next set of investment opportunities with our stock screeners, built to surface ideas you may not want to overlook.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.