MMYT Looks Stronger Than RCL With 56% Return Potential
We Forecast Higher Stock Return For MakeMyTrip vs. Its Competitor Royal Caribbean
Royal Caribbean (RCL) is trading at a cheaper P/S valuation vs MakeMyTrip (MMYT) but it makes sense to pay more for MakeMyTrip for higher return.
- In summary, we estimate MMYT to return 56% to stock holders over next 3 years.
- This return will come from nearly 64% cumulative revenue growth offset by 5.0% P/S ratio contraction.
- Specifically, expect MMYT revenue to grow on average 18.0% annually over next 3Y; It averaged 50.7% in last 3 years and grew nearly 21.0% last quarter.
| RCL | MMYT | |
|---|---|---|
| Market Cap | 85.9 | 10.6 |
| LTM Revenue | 17.2 | 1.0 |
| Current P/S | 5.0 | 10.8 |
| Current P/EBIT | 17.3 | 79.7 |
| Stock Return Forecast (3Y) | 29.8% | 55.9% |
P/S = Price to Sales | P/EBIT = Price to earnings before interest and taxes | Current = as of date: 8/5/2025 | LTM = Last 12 months
RCL operates luxury and premium cruise brands offering global voyages, founded in 1968 and headquartered in Miami, Florida. MMYT sells travel products and solutions across multiple countries, operating in air ticketing, hotels and packages, and bus ticketing, with around 150 franchisee-owned travel stores as of March 2021.
But do these numbers tell the full story? Read Buy or Sell MMYT Stock to see if MakeMyTrip’s edge holds up under the hood or if Royal Caribbean still has cards to play (see Buy or Sell RCL Stock).
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Running growth and valuation scenarios based on historical trends is one way to assess stocks. Trefis High Quality Portfolio evaluates much more, and is designed to reduce stock-specific risk while giving upside exposure
3-Year Return Depends On [1] Revenue Growth [2] P/S
| RCL | MMYT | |
|---|---|---|
| LTM Revenue | 17.2 | 1.0 |
| x Annual Revenue Growth | 13.8% | 18.0% |
| = Revenue Forecast (3Y) | 25.4 | 1.6 |
| x PS Forecast | 4.4 | 10.3 |
| = Market Cap Forecast (3Y) | 111.5 | 16.5 |
| Market Cap Today | 85.9 | 10.6 |
| Stock Return Forecast (3Y) | 29.8% | 55.9% |
P/S = Price to Sales | P/EBIT = Price to earnings before interest and taxes | Current = as of date: 8/5/2025 | LTM = Last 12 months
How Much Can Revenue Grow In Next 3 Years
We forecast annual revenue growth of 13.8% for RCL and 18.0% for MMYT
Past revenue growth metrics that form basis of our expectation
| RCL | MMYT | |
|---|---|---|
| Recent Quarter Revenue Growth | 10.4% | 21.0% |
| LTM Revenue Growth | 12.1% | 25.0% |
| 3Y Avg Revenue Growth (LTM) | 65.4% | 50.7% |
| Annual Revenue Growth Forecast | 13.8% | 18.0% |
RCL Revenue Comparison | MMYT Revenue Comparison
Recent Quarter Growth = Last quarter (yoy) growth | LTM = Last 12 months
Forecast methodology involves:
(a) Different weights to short-term (quarterly) vs long-term (LTM, 3Y Avg) growth (b) Removing exceptional growth periods from consideration
(c) Applying base effect to moderate future growth (d) Applying growth caps and floors based on company size
Which P/S Scenarios Make Sense
We forecast P/S of 4.4 for RCL and 10.3 for MMYT based on below plausible scenarios
P/S Scenarios & Corresponding 3-Year Returns (in brackets)
| RCL | MMYT | |
|---|---|---|
| Current | 5.0 (47.5%) | 10.8 (64.1%) |
| Expansion | 6.5 (91.8%) | 14.1 (113.4%) |
| Contraction | 3.5 (3.3%) | 7.6 (14.9%) |
| Average | 2.6 (-23.3%) | 8.6 (31.2%) |
| Scenario Average | 4.4 (29.8%) | 10.3 (55.9%) |
RCL Valuation Ratios Comparison | MMYT Valuation Ratios Comparison
Current = as of 8/5/2025 | Expansion/Contraction = Based on quarterly trend (+/-) | Average = Historical quarterly average
(a) Exceptional spikes excluded (b) Quarterly trend defined by quarterly average % change (c) Expansion/contraction capped at +30%/-30%
Are Current P/S Ratios Justified
A higher P/S is justified by higher margin, higher revenue growth, better margin expansion, and lower risk
| RCL | MMYT | |
|---|---|---|
| Current P/S | 5.0 | 10.8 |
| Current P/EBIT | 17.3 | 79.7 |
|
|
||
| Last Q Sequential Revenue Growth | 13.5% | -8.2% |
| Last Q YoY Revenue Growth | 10.4% | 21.0% |
| LTM Revenue Growth | 12.1% | 25.0% |
| 3Y Average Revenue Growth | 65.4% | 50.7% |
|
|
||
| LTM Op Margin | 26.4% | 12.4% |
| 3Y AVG Margin | 20.6% | 8.6% |
| LTM FCF Margin | 20.9% | 18.9% |
|
|
||
| Debt to Equity | 23.2% | 2.1% |
| Cash to Assets | 1.9% | 41.6% |
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read MMYT Dip Buyer Analyses and RCL Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming the S&P 500 over the last 4-year period. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.