Is Carnival’s Stock Overvalued or Undervalued?

The cruise ships "Carnival Sunrise" (L) and "Carnival Vista" (R) part of the Carnival Cruise Line, are seen moored at a quay in the port of Miami, on Dec. 23, 2020. Daniel Slim/AFP via Getty Images

Carnival Corp. shares have lagged the S&P 500 in 2021, generating a year-to-date total return loss of 5.1 percent.

Carnival stock has had a wild ride since the 2020 shutdowns, but investors may be wondering whether there’s any value in Carnival shares after its 2021 pullback.

Earnings

A price-to-earnings ratio (PE) is one of the most basic fundamental metrics for gauging a stock’s value. The lower the PE, the higher the value.