We’ve recently updated our valuation analysis.

Delta Air Lines Valuation

Is DAL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for DAL?

Other financial metrics that can be useful for relative valuation.

DAL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue1x
Enterprise Value/EBITDA10.3x
PEG Ratio7.2x

Price to Sales Ratio vs Peers

How does DAL's PS Ratio compare to its peers?

The above table shows the PS ratio for DAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.6x
LUV Southwest Airlines
1x6.4%US$23.3b
UAL United Airlines Holdings
0.4x5.9%US$14.5b
AAL American Airlines Group
0.2x3.7%US$9.4b
ALK Alaska Air Group
0.7x5.5%US$5.9b
DAL Delta Air Lines
0.5x3.0%US$22.5b

Price-To-Sales vs Peers: DAL is good value based on its Price-To-Sales Ratio (0.5x) compared to the peer average (0.6x).


Price to Earnings Ratio vs Industry

How does DAL's PE Ratio compare vs other companies in the US Airlines Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a42.5%
n/an/an/a

Price-To-Sales vs Industry: DAL is good value based on its Price-To-Sales Ratio (0.5x) compared to the Global Airlines industry average (1x)


Price to Sales Ratio vs Fair Ratio

What is DAL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

DAL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.5x
Fair PS Ratio0.9x

Price-To-Sales vs Fair Ratio: DAL is good value based on its Price-To-Sales Ratio (0.5x) compared to the estimated Fair Price-To-Sales Ratio (0.9x).


Share Price vs Fair Value

What is the Fair Price of DAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: DAL ($35.1) is trading below our estimate of fair value ($39.82)

Significantly Below Fair Value: DAL is trading below fair value, but not by a significant amount.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst DAL forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$35.10
US$48.17
+37.2%
21.7%US$74.00US$35.00n/a18
Nov ’23US$33.63
US$47.89
+42.4%
22.1%US$74.00US$35.00n/a18
Oct ’23US$28.06
US$49.41
+76.1%
20.9%US$74.00US$35.00n/a17
Sep ’23US$31.09
US$49.61
+59.6%
19.2%US$70.00US$35.00n/a19
Aug ’23US$32.23
US$50.25
+55.9%
18.8%US$70.00US$35.00n/a18
Jul ’23US$29.52
US$55.17
+86.9%
11.5%US$70.00US$45.00n/a18
Jun ’23US$39.54
US$54.95
+39.0%
11.8%US$70.00US$45.00n/a21
May ’23US$43.03
US$54.43
+26.5%
11.3%US$70.00US$44.00n/a21
Apr ’23US$39.31
US$50.53
+28.5%
13.1%US$67.00US$38.00n/a22
Mar ’23US$37.64
US$52.39
+39.2%
10.2%US$67.00US$40.00n/a22
Feb ’23US$40.49
US$51.77
+27.9%
11.2%US$67.00US$40.00n/a23
Jan ’23US$39.08
US$51.59
+32.0%
11.2%US$63.00US$42.00n/a23
Dec ’22US$33.53
US$53.20
+58.7%
11.3%US$65.00US$42.00n/a23
Nov ’22US$40.42
US$53.58
+32.5%
11.2%US$65.00US$42.00US$33.6322
Oct ’22US$45.38
US$54.13
+19.3%
12.8%US$67.00US$42.00US$28.0623
Sep ’22US$40.40
US$55.14
+36.5%
12.6%US$73.00US$42.00US$31.0924
Aug ’22US$39.90
US$55.97
+40.3%
11.9%US$73.00US$44.00US$32.2323
Jul ’22US$44.23
US$56.90
+28.7%
11.4%US$73.00US$46.00US$29.5221
Jun ’22US$47.70
US$54.45
+14.2%
15.7%US$70.00US$33.00US$39.5420
May ’22US$46.92
US$54.65
+16.5%
15.6%US$72.00US$35.00US$43.0320
Apr ’22US$48.83
US$50.30
+3.0%
14.6%US$66.00US$35.00US$39.3120
Mar ’22US$48.06
US$47.10
-2.0%
13.7%US$55.00US$35.00US$37.6421
Feb ’22US$37.82
US$45.95
+21.5%
12.6%US$55.00US$35.00US$40.4921
Jan ’22US$40.21
US$43.25
+7.6%
16.4%US$55.00US$30.00US$39.0820
Dec ’21US$39.96
US$41.11
+2.9%
15.7%US$54.00US$30.00US$33.5319
Nov ’21US$30.64
US$39.33
+28.4%
14.6%US$51.00US$30.00US$40.4218

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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