Discounted Cash Flow (DCF) Analysis Levered
Delta Air Lines, Inc. (DAL)
$39.28
+0.17 (+0.43%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 47,007 | 17,095 | 29,899 | 50,582 | 50,582 | 64,145.10 | 81,345.02 | 103,156.94 | 130,817.52 | 165,895.04 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 8,425 | -3,793 | 3,264 | 6,364 | 2,432.16 | 3,084.32 | 3,911.35 | 4,960.14 | 6,290.16 | 7,976.81 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -4,936 | -1,899 | -3,247 | -6,366 | -5,697.36 | -7,225.06 | -9,162.39 | -11,619.20 | -14,734.79 | -18,685.78 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 3,489 | -5,692 | 17 | -2 | -3,265.21 | -4,140.74 | -5,251.04 | -6,659.06 | -8,444.63 | -10,708.97 |
Weighted Average Cost Of Capital
| Share price | $ 39.28 |
|---|---|
| Beta | 1.250 |
| Diluted Shares Outstanding | 641 |
| Cost of Debt | |
| Tax Rate | 26.10 |
| After-tax Cost of Debt | 3.69% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.644 |
| Total Debt | 29,560 |
| Total Equity | 25,178.48 |
| Total Capital | 54,738.48 |
| Debt Weighting | 54.00 |
| Equity Weighting | 46.00 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Actual | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected | 2028 Projected |
| Revenue | 47,007 | 17,095 | 29,899 | 50,582 | 50,582 | 64,145.10 | 81,345.02 | 103,156.94 | 130,817.52 | 165,895.04 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 8,425 | -3,793 | 3,264 | 6,364 | 2,432.16 | 3,084.32 | 3,911.35 | 4,960.14 | 6,290.16 | 7,976.81 |
| Capital Expenditure | -4,936 | -1,899 | -3,247 | -6,366 | -5,697.36 | -7,225.06 | -9,162.39 | -11,619.20 | -14,734.79 | -18,685.78 |
| Free Cash Flow | 3,489 | -5,692 | 17 | -2 | -3,265.21 | -4,140.74 | -5,251.04 | -6,659.06 | -8,444.63 | -10,708.97 |
| WACC | ||||||||||
| PV LFCF | -2,849.01 | -3,394.67 | -4,044.83 | -4,819.52 | -5,742.58 | |||||
| SUM PV LFCF | -28,473.38 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.43 |
| Free cash flow (t + 1) | -10,923.15 |
| Terminal Value | -246,572.32 |
| Present Value of Terminal Value | -180,561.02 |
Intrinsic Value
| Enterprise Value | -209,034.40 |
|---|---|
| Net Debt | 26,345 |
| Equity Value | -235,379.40 |
| Shares Outstanding | 641 |
| Equity Value Per Share | -367.21 |