Delta Air Lines Inc DAL

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  • Last Close
  • Sector
  • Industry
  • Investment Style
    Mid Value
  • Market Cap
  • Forward Div Yield
    0.95%
  • Trailing Div Yield
  • Price/Sales
    0.68
  • Price/Book
    3.00
  • Beta (5-Year)
    1.46
  • Consensus Forward P/E
    8.55
  • Trailing 12-mo Rev

Morningstar's Analysis

Valuation Apr 10, 2025
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Delta Air Lines' Premium Segmentation Allows It to Earn the Lion's Share of Industry Profits
Author Photo
Nicolas Owens
Equity Analyst
Business Strategy and Outlook | by Nicolas Owens Updated Jan 10, 2025

Delta Air Lines positions itself as a premium airline, with the highest revenue and costs per seat mile in the North American market. Even in the relatively harmonious 2015-19 period after the airline industry consolidated and fuel costs fell, Delta's industry-leading operating margins declined due to increased fuel, labor, and depreciation expense

Morningstar Fair Value Estimate
The Morningstar Fair Value Estimate guides investors to the long-term, intrinsic value of a stock, helping them see beyond the present market price.

Show me how fair value is derived (00:41)

Morningstar calculates the fair value estimate of a company based on a projection of how much cash the company will generate in the future. Morningstar analysts create custom industry and company assumptions to feed income statement, balance sheet, and capital investment assumptions into a proprietary discounted cash flow modeling template. Scenario analysis, in-depth competitive advantage analysis, and a variety of other analytical tools are used to augment the discounted cash flow process. The analyst discounts future cash flows using the weighted average of the costs of equity, debt, and preferred stock (and any other funding sources), using expected future proportionate long-term, market-value weights.

The Morningstar Fair Value Estimate is a projection/opinion and not a statement of fact. If Morningstar's base-case assumptions are true the market price will converge on Morningstar's fair value estimate over time, generally within three years. Investments in securities are subject to market and other risks. Past performance of a security may or may not be sustained in the future and is no indication of future performance.

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