Discounted Cash Flow (DCF) Analysis Levered
Delta Air Lines, Inc. (DAL)
$31.2
+1.64 (+5.55%)
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 | $ 31.2 |
|---|---|
| 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 | 8.102 |
| Total Debt | 34,679 |
| Total Equity | 19,999.20 |
| Total Capital | 54,678.20 |
| Debt Weighting | 63.42 |
| Equity Weighting | 36.58 |
| 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 | -1,130.05 | -1,147.21 | -1,164.62 | -1,182.30 | -1,200.24 | |||||
| SUM PV LFCF | -5,824.42 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.61 |
| Free cash flow (t + 1) | -1,533.68 |
| Terminal Value | -58,761.72 |
| Present Value of Terminal Value | -46,906.01 |
Intrinsic Value
| Enterprise Value | -52,730.43 |
|---|---|
| Net Debt | 26,746 |
| Equity Value | -79,476.43 |
| Shares Outstanding | 641 |
| Equity Value Per Share | -123.99 |