Looking into the current session, Norwegian Cruise Line Inc. (NYSE:NCLH) shares are trading at $17.02, after a 3.5% rise. Moreover, over the past month, the stock increased by 102.56%, but in the past year, fell by 70.80%. Shareholders might be interested in knowing whether the stock is undervalued, even if the company is performing up to par in the current session.

The stock is currently trading higher from its 52 week low by 142.03%. Assuming that all other factors are held constant, this could present itself as an opportunity for investors trying to diversify their portfolio with Travel Services stocks, and capitalize on the lower share price observed over the year.

Most often, an industry will prevail in a particular phase of a business cycle, than other industries.

Compared to the aggregate P/E ratio of the 9.53 in the travel services industry, Norwegian Cruise Line  has a lower P/E ratio of 3.82. Shareholders might be inclined to think that they might perform worse than its industry peers. It’s also possible that the stock is undervalued.

There are many limitations to P/E ratio. It is sometimes difficult to determine the nature of the earnings makeup of a company. Shareholders might not get what they're looking for, from trailing earnings.