Discounted Cash Flow (DCF) Analysis Levered
Delta Air Lines, Inc. (DAL)
$37.56
-0.11 (-0.29%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 44,438 | 47,007 | 17,095 | 29,899 | 50,582 | 61,485.37 | 74,739.06 | 90,849.68 | 110,433.09 | 134,237.86 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 7,014 | 8,437 | -3,793 | 3,263 | 6,364 | 4,308.82 | 5,237.62 | 6,366.63 | 7,739.01 | 9,407.22 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -5,168 | -4,936 | -1,899 | -3,247 | -6,366 | -6,970.49 | -8,473.04 | -10,299.48 | -12,519.61 | -15,218.32 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,846 | 3,501 | -5,692 | 16 | -2 | -2,661.68 | -3,235.42 | -3,932.85 | -4,780.60 | -5,811.10 |
Weighted Average Cost Of Capital
| Share price | $ 37.56 |
|---|---|
| Beta | 1.304 |
| Diluted Shares Outstanding | 641 |
| Cost of Debt | |
| Tax Rate | 31.14 |
| After-tax Cost of Debt | 2.31% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.698 |
| Total Debt | 30,610 |
| Total Equity | 24,075.96 |
| Total Capital | 54,685.96 |
| Debt Weighting | 55.97 |
| Equity Weighting | 44.03 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 44,438 | 47,007 | 17,095 | 29,899 | 50,582 | 61,485.37 | 74,739.06 | 90,849.68 | 110,433.09 | 134,237.86 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 7,014 | 8,437 | -3,793 | 3,263 | 6,364 | 4,308.82 | 5,237.62 | 6,366.63 | 7,739.01 | 9,407.22 |
| Capital Expenditure | -5,168 | -4,936 | -1,899 | -3,247 | -6,366 | -6,970.49 | -8,473.04 | -10,299.48 | -12,519.61 | -15,218.32 |
| Free Cash Flow | 1,846 | 3,501 | -5,692 | 16 | -2 | -2,661.68 | -3,235.42 | -3,932.85 | -4,780.60 | -5,811.10 |
| WACC | ||||||||||
| PV LFCF | -2,510.78 | -2,878.97 | -3,301.16 | -3,785.26 | -4,340.35 | |||||
| SUM PV LFCF | -16,816.51 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.01 |
| Free cash flow (t + 1) | -5,927.32 |
| Terminal Value | -147,813.56 |
| Present Value of Terminal Value | -110,402.81 |
Intrinsic Value
| Enterprise Value | -127,219.32 |
|---|---|
| Net Debt | 27,344 |
| Equity Value | -154,563.32 |
| Shares Outstanding | 641 |
| Equity Value Per Share | -241.13 |