Delta Air Valuation

DAL Stock  USD 47.31  1.38  3.00%   
At this time, the firm appears to be overvalued. Delta Air Lines shows a prevailing Real Value of $43.53 per share. The current price of the firm is $47.31. Our model computes the value of Delta Air Lines from reviewing the firm fundamentals such as Profit Margin of 0.08 %, shares outstanding of 643.32 M, and Current Valuation of 52.96 B as well as analyzing its technical indicators and probability of bankruptcy. In general, most investors advise picking up undervalued instruments and discarding overvalued instruments since, at some point, asset prices and their ongoing real values will submerge.
Price Book
2.6608
Enterprise Value
53 B
Enterprise Value Ebitda
6.0299
Price Sales
0.509
Forward PE
6.8446
Overvalued
Today
47.31
Please note that Delta Air's price fluctuation is very steady at this time. Calculation of the real value of Delta Air Lines is based on 3 months time horizon. Increasing Delta Air's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Delta Air Lines is useful when determining the fair value of the Delta stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Delta Air. Since Delta Air is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Delta Stock. However, Delta Air's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
Historical Market  47.31 Real  43.53 Target  53.94 Hype  47.31 Naive  48.42
The real value of Delta Stock, also known as its intrinsic value, is the underlying worth of Delta Air Lines Company, which is reflected in its stock price. It is based on Delta Air's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Delta Air's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Delta Air's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
43.53
Real Value
52.04
Upside
Estimating the potential upside or downside of Delta Air Lines helps investors to forecast how Delta stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Delta Air more accurately as focusing exclusively on Delta Air's fundamentals will not take into account other important factors:
Earnings
Estimates (0)
LowProjectedHigh
0.250.350.45
Details
Hype
Prediction
LowEstimatedHigh
45.2447.3149.38
Details
Potential
Annual Dividend
LowForecastedHigh
0.10.100.10
Details
21 Analysts
Consensus
LowTarget PriceHigh
49.0953.9459.87
Details

Delta Air Investments

(6.98 Billion)

Delta Air Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Delta Air's current stock value. Our valuation model uses many indicators to compare Delta Air value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Delta Air competition to find correlations between indicators driving Delta Air's intrinsic value. More Info.
Delta Air Lines is rated # 5 in price to sales category among related companies. It is rated # 2 in beta category among related companies totaling about  2.81  of Beta per Price To Sales. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Delta Air by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Delta Air's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Delta Air's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Delta Air's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Delta Air and how it compares across the competition.

About Delta Air Valuation

The stock valuation mechanism determines the current worth of Delta Air Lines on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Delta Air Lines. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Delta Air Lines based exclusively on its fundamental and basic technical indicators. By analyzing Delta Air's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Delta Air's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Delta Air. We calculate exposure to Delta Air's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Delta Air's related companies.
Last ReportedProjected for 2024
Gross Profit11.5 B10.6 B
Pretax Profit Margin 0.1  0.10 
Operating Profit Margin 0.1  0.1 
Net Profit Margin 0.08  0.08 
Gross Profit Margin 0.20  0.39 

8 Steps to conduct Delta Air's Valuation Analysis

Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Delta Air's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Delta Air's valuation analysis, follow these 8 steps:
  • Gather financial information: Obtain Delta Air's financial statements, including balance sheets, income statements, and cash flow statements.
  • Determine Delta Air's revenue streams: Identify Delta Air's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
  • Analyze market data: Research Delta Air's industry and market trends, including the size of the market, growth rate, and competition.
  • Establish Delta Air's growth potential: Evaluate Delta Air's management, business model, and growth potential.
  • Determine Delta Air's financial performance: Analyze its financial statements to assess its historical performance and future potential.
  • Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
  • Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Delta Air's estimated value.
  • Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Note: This is a general outline, and different approaches and methods may be used depending on the type and size of the company being valued. We also recomment to seek professional assistance to ensure accuracy.
Delta Air's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Delta Air's value is low or high relative to the company's performance and growth projections. Determining the market value of Delta Air can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Delta Air represents a small ownership stake in the entity. As a stockholder of Delta, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Delta Air Dividends Analysis For Valuation

Please note that Delta Air has scaled down on payment of dividends at this time. At this time, Delta Air's Retained Earnings are quite stable compared to the past year. Retained Earnings Total Equity is expected to rise to about 2.5 B this year, although the value of Price Earnings To Growth Ratio will most likely fall to 0.02.
There are various types of dividends Delta Air can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Delta shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Delta Air Lines directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Delta pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Delta Air by the value of the dividends paid out.

Delta Air Growth Indicators

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Delta Air does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Common Stock Shares Outstanding643 M
Quarterly Earnings Growth Y O Y1.436
Forward Price Earnings6.8446

Delta Air Current Valuation Indicators

Valuation refers to the process of determining the present value of Delta Air Lines and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Delta we look at many different elements of the entity such as Delta's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation. Delta Air's valuation analysis is also a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Delta Air's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Delta Air, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Delta Air's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Delta Air's worth.
When determining whether Delta Air Lines is a strong investment it is important to analyze Delta Air's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Delta Air's future performance. For an informed investment choice regarding Delta Stock, refer to the following important reports:
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Delta Air Lines. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in nation.
Note that the Delta Air Lines information on this page should be used as a complementary analysis to other Delta Air's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.

Complementary Tools for Delta Stock analysis

When running Delta Air's price analysis, check to measure Delta Air's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Delta Air is operating at the current time. Most of Delta Air's value examination focuses on studying past and present price action to predict the probability of Delta Air's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Delta Air's price. Additionally, you may evaluate how the addition of Delta Air to your portfolios can decrease your overall portfolio volatility.
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Is Delta Air's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Delta Air. If investors know Delta will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Delta Air listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
1.436
Dividend Share
0.3
Earnings Share
7.17
Revenue Per Share
90.842
Quarterly Revenue Growth
0.059
The market value of Delta Air Lines is measured differently than its book value, which is the value of Delta that is recorded on the company's balance sheet. Investors also form their own opinion of Delta Air's value that differs from its market value or its book value, called intrinsic value, which is Delta Air's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Delta Air's market value can be influenced by many factors that don't directly affect Delta Air's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Delta Air's value and its price as these two are different measures arrived at by different means. Investors typically determine if Delta Air is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Delta Air's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.