Discounted Cash Flow (DCF) Analysis Levered
Delta Air Lines, Inc. (DAL)
$29.52
+0.55 (+1.90%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 41,244 | 44,438 | 47,007 | 17,095 | 29,899 | 31,752.08 | 33,720.02 | 35,809.93 | 38,029.36 | 40,386.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 5,148 | 7,014 | 8,425 | -3,793 | 3,264 | 2,217.40 | 2,354.83 | 2,500.78 | 2,655.78 | 2,820.38 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -3,891 | -5,168 | -4,936 | -1,899 | -3,247 | -3,399.55 | -3,610.25 | -3,834.01 | -4,071.63 | -4,323.98 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,257 | 1,846 | 3,489 | -5,692 | 17 | -1,182.15 | -1,255.42 | -1,333.23 | -1,415.86 | -1,503.61 |
Weighted Average Cost Of Capital
| Share price | $ 29.52 |
|---|---|
| Beta | 1.054 |
| Diluted Shares Outstanding | 641 |
| Cost of Debt | |
| Tax Rate | 29.65 |
| After-tax Cost of Debt | 2.60% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.866 |
| Total Debt | 34,679 |
| Total Equity | 18,922.32 |
| Total Capital | 53,601.32 |
| Debt Weighting | 64.70 |
| Equity Weighting | 35.30 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 41,244 | 44,438 | 47,007 | 17,095 | 29,899 | 31,752.08 | 33,720.02 | 35,809.93 | 38,029.36 | 40,386.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 5,148 | 7,014 | 8,425 | -3,793 | 3,264 | 2,217.40 | 2,354.83 | 2,500.78 | 2,655.78 | 2,820.38 |
| Capital Expenditure | -3,891 | -5,168 | -4,936 | -1,899 | -3,247 | -3,399.55 | -3,610.25 | -3,834.01 | -4,071.63 | -4,323.98 |
| Free Cash Flow | 1,257 | 1,846 | 3,489 | -5,692 | 17 | -1,182.15 | -1,255.42 | -1,333.23 | -1,415.86 | -1,503.61 |
| WACC | ||||||||||
| PV LFCF | -992.82 | -1,009.34 | -1,026.13 | -1,043.20 | -1,060.56 | |||||
| SUM PV LFCF | -5,849.81 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.46 |
| Free cash flow (t + 1) | -1,533.68 |
| Terminal Value | -62,344.75 |
| Present Value of Terminal Value | -50,124.47 |
Intrinsic Value
| Enterprise Value | -55,974.28 |
|---|---|
| Net Debt | 26,746 |
| Equity Value | -82,720.28 |
| Shares Outstanding | 641 |
| Equity Value Per Share | -129.05 |