Delta Air Lines, Inc. (DAL) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

-110.2%

-$8.51

vs $83.55 price

Levered DCF

$123.72

After debt service

Piotroski score

8 / 9

Strong

Altman Z-score

1.5

Distress zone

Rating

B+

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	8.99×	11.22×	5.58×	15.87×	88.82×	-2.07×	7.99×	8.77×
P/B	2.17×	2.56×	2.31×	3.19×	6.39×	16.67×	2.48×	2.52×
P/S	0.71×	0.64×	0.44×	0.41×	0.83×	1.5×	0.81×	0.78×
EV / EBITDA	7.69×	7.44×	5.72×	9.57×	14.04×	-4.28×	5.78×	6.35×
Gross margin	22.8%	26.9%	26.7%	22.1%	7.1%	-25.6%	28.9%	25.0%
Operating margin	9.2%	9.7%	9.5%	7.2%	6.3%	-72.9%	14.1%	11.8%
Net margin	7.9%	5.6%	7.9%	2.6%	0.9%	-72.4%	10.1%	8.9%
Current ratio	0.4×	0.37×	0.39×	0.5×	0.76×	1.09×	0.41×	0.34×
Debt / equity	1.02×	1.49×	2.46×	4.65×	8.92×	23.17×	1.12×	1.21×
Interest coverage	8.57×	8.03×	6.62×	3.56×	1.47×	-13.42×	21.99×	16.93×
Dividend yield	1.0%	0.8%	0.5%	0.0%	0.0%	1.0%	2.6%	2.6%
Payout ratio	8.8%	9.3%	2.8%	0.0%	0.0%	-2.1%	20.6%	23.1%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	24.1%	22.6%	41.5%	20.0%	7.2%	-807.4%	31.0%	28.7%
Return on invested capital	8.3%	8.6%	8.9%	5.1%	2.5%	-16.9%	10.7%	9.1%
Return on assets	6.2%	4.6%	6.3%	1.8%	0.4%	-17.2%	7.4%	6.5%
Free cash flow yield	8.5%	7.4%	4.4%	-0.0%	0.1%	-22.3%	9.2%	5.4%
Earnings yield	11.1%	8.8%	17.9%	6.3%	1.1%	-48.4%	12.5%	11.4%
Enterprise value	$61.7B	$58.9B	$50.2B	$48.3B	$51.6B	$52.8B	$52.4B	$49.4B
Net debt / EBITDA	2.09×	2.49×	2.79×	5.41×	7.28×	-2.21×	1.58×	1.92×
Cash conversion cycle (days)	-11	-7	-7	-11	-12	-6	0	-2