Norwegian Cruise Line Holdings Ltd.

Where It Passes

Where It Falls Short

• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio0.22

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-0.8%

  ✗Buffett> 10%

  ROIC - WACC-10.8%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)10.7%

  ✗Greenblatt> 25%

  Current Ratio Change YoY0.17 -> 0.21

  ✓PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.47x -> 0.44x

  ✗PiotroskiImproved YoY

  Current Assets / Current Liabilities0.22

  ✗Dreman> 1.5

  Return on Invested Capital6.1%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=5.1%; FY2024: ROIC=8.0%; FY2025: ROIC=7.3%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC7.3% (RR=100% x ROIC=7.3%)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest 7.3%)

  ✗SleepROIC > 12% in a majority of years
• Verdicts7% pass✓ 1✗ 14▾

  Split decision: 13 FAIL · 2 NEUTRAL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (0/9)✗LynchFAIL (1/7)✗GreenblattRank #1200•PiotroskiNEUTRAL (F-Score 6)✗DremanFAIL (4/11)✗MungerFAIL (1/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)✗TempletonFAIL (2/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #1411/2370 (Top 59.5%))✗NeffFAIL (1/6)✗SchlossFAIL (1/7)•OshaughnessyNEUTRAL (Not ranked)
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag NCLH's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 6.61, IC: 1.6x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity4.79

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change0.00% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.22

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity4.79

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels4.79

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=1.6x, D/EBITDA=5.4x

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity4.79

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-4.7910; #4072/4210 (top 96.7%)

  ✗AsnessTop 30% of eligible cross-section
• Valuation8% pass✓ 3✗ 25▾

  12 of 13 flag NCLH's valuation — Graham, Lynch, Greenblatt +9 more

  Net income / market capitalization+10.10%; #641/6340 (top 10.1%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Price / 3-yr avg EPS16.8x

  ✗Graham<= 15x

  Price-to-Book Ratio3.7x

  ✗Graham<= 1.5x

  P/E x P/B62.30

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value6.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.9%, ROC=10.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS19.5x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)3.9x

  ✓Dreman< 8x

  Price / Book Value per Share3.7x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=19.5x, OE Yield=-20.5%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=19.5x, FCF Yield=-14.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=19.5x, P/B=3.7x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-12.2% (IV=$16.00 vs Price=$17.96)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low121% of trailing low ($14.80)

  ✗Templeton<= 120% of trailing low (certified split-adjusted live window)

  Positive book equity / market capitalization+0.3818; #3348/6449 (top 51.9%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS19.5x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share5.20x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-64.8%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+1.2321; #1553/5247 (top 29.6%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization-6.84%; #3088/4519 (top 68.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-10.02%; #3437/6202 (top 55.4%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Growth13% pass✓ 3✗ 10▾

  7 of 8 flag NCLH's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: 20.7% vs Rev: 4.9%

  ✗LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency12/15 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth10.9%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 36.0% -> 42.6%, operating margin 10.9% -> 15.9%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR50.3%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Profitability19% pass✓ 13✗ 22▾

  13 of 16 flag NCLH's profitability — Graham, Buffett, Lynch +10 more

  Net income / market capitalization+10.10%; #641/6340 (top 10.1%)

  ✓AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive EPS (10 years)12/16 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)12/16 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-671.3%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)15.9% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-999.1M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE26.5%

  ✓Lynch> 15%

  EBIT / Enterprise Value6.9%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=6.9%, ROC=10.7%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets1.88%

  ✓PiotroskiROA > 0

  ROA Change YoY4.56% -> 1.88% (delta: -2.68%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=9.27%, ROA=1.88%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY40.0% -> 42.6%

  ✓PiotroskiImproved YoY

  Pre-Tax Income / Revenue8.1%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity26.5%

  ✓Dreman> 12%

  Margin of SafetyP/E=19.5x, P/B=3.7x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity46.1% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-12.2% (IV=$16.00 vs Price=$17.96)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency12/15 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue13.8%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity26.5%

  ✓Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend10.9% (2023) -> 15.9% (2025)

  ✓TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 36.0% -> 42.6%, operating margin 10.9% -> 15.9%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Gross profit / total assets+18.58%; #2150/3702 (top 58.1%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity+26.45%; #550/5226 (top 10.5%)

  ✓AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.1082; #3578/5884 (top 60.8%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years7/10 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Valuation models20% pass✓ 1✗ 4▾

  Models split on NCLH at $17.96 — fair values range $9.17–$22.88

  Graham fair value$10.02

  ✗Graham-79.2% margin vs $17.96

  Greenblatt fair value$22.88

  ✓Greenblatt+21.5% margin vs $17.96

  Dreman fair value$16.00

  ✗Dreman-12.2% margin vs $17.96

  Pabrai fair value$9.17

  ✗Pabrai-95.9% margin vs $17.96

  Akre fair value$10.91

  ✗Akre-64.6% margin vs $17.96
• Cash Flow30% pass✓ 4✗ 8▾

  7 of 10 flag NCLH's cash flow — Buffett, Lynch, Pabrai +4 more

  Free Cash Flow Proxy$-999.1M

  ✗BuffettPositive and growing

  FCF Positive and Growing$-564.2M

  ✗LynchPositive and growing

  Operating Cash Flow$2.1B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=9.27%, ROA=1.88%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)3.9x

  ✓Dreman< 8x

  P/E or FCF YieldP/E=19.5x, FCF Yield=-14.2%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive7/15 years FCF positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap-6.9%

  ✗Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency13/15 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$-564.2M

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization-6.84%; #3088/4519 (top 68.3%)

  ✗OshaughnessyTop 10% of eligible cross-section