Discounted Cash Flow (DCF) Analysis Levered

Delta Air Lines, Inc. (DAL)

$38.64

-0.60 (-1.53%)
All numbers are in Millions, Currency in USD
Stock DCF: -120.05 | 38.64 | overvalue

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 41,24444,43847,00717,09529,89931,752.0833,720.0235,809.9338,029.3640,386.35
Revenue (%)
Operating Cash Flow 5,1487,0148,425-3,7933,2642,217.402,354.832,500.782,655.782,820.38
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 1,2571,8463,489-5,69217-1,182.15-1,255.42-1,333.23-1,415.86-1,503.61

Weighted Average Cost Of Capital

Share price $ 38.64
Beta 1.052
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 7.754
Total Debt 34,679
Total Equity 24,768.24
Total Capital 59,447.24
Debt Weighting 58.34
Equity Weighting 41.66
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 41,24444,43847,00717,09529,89931,752.0833,720.0235,809.9338,029.3640,386.35
Operating Cash Flow 5,1487,0148,425-3,7933,2642,217.402,354.832,500.782,655.782,820.38
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 1,2571,8463,489-5,69217-1,182.15-1,255.42-1,333.23-1,415.86-1,503.61
WACC
PV LFCF -1,128.65-1,144.36-1,160.29-1,176.44-1,192.81
SUM PV LFCF -5,802.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.74
Free cash flow (t + 1) -1,533.68
Terminal Value -55,973.76
Present Value of Terminal Value -44,403.95

Intrinsic Value

Enterprise Value -50,206.50
Net Debt 26,746
Equity Value -76,952.50
Shares Outstanding 641
Equity Value Per Share -120.05