Shares in Carnival Corp, the US based and listed holding company and its UK based, London listed counterpart Carnival plc trade at an “compelling enterprise value (EV) per berth ratio, according to Robin Farley, cruise industry analyst at UBS in New York.

“We believe EV/Berth allows investors to compare long-term value across periods of different earnings power, particularly helpful when the next 12 months may not be the best period to value the stock for the long term,” she said in a research note dated 4 April.

 Carnival shares only trade 11% above their all time quarterly low set in 1Q09 in EV/Berth terms, while the correspmding figure for Royal Caribbean Cruises Ltd (RCL) is 46% above all-time quarterly average low, also set in 1Q09.

 “CCL’s (Carnival group’s) EV/Berth is currently at an 8% premium to RCL, well below its historical premium of 26% over the past 5 years and 38% over the last 10 years,” she said.

Shares in both companies are trading below Trailing 10 Year EV/Berth Averages, with CCL EV/Berth is trading at 12% below its five-year quarterly and 34% below its 10-year average. “RCL EV/Berth is now 2% above its five-year quarterly average and 15% below its 10-year quarterly average,” Farley stated.

Carnival’s five-year average quarterly EV/berth would imply a stock price of about $40 for Carnival Corporation stock and £25 for that of Carnival plc.

RCL’s five-year quarterly average EV/berth would imply a stock price of  about $31,” she said. Farley recommends that investors buy shares in Carnival, while RCL receives a neutral notion.