Price to Sales (P/S)
since 2007
Calculation
Delta Air Lines Inc., P/S, long-term trends, calculation
| P/S | = | Share price1, 2, 3 | ÷ | Sales per share1 | Sales per share1 | = | Operating revenue1 (in millions) |
÷ | No. shares of common stock outstanding2 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Feb 11, 2022 | 0.91 | = | 42.33 | ÷ | 46.72 | 46.72 | = | 29,899 | ÷ | 639,929,760 | |
| Feb 12, 2021 | 1.62 | = | 43.29 | ÷ | 26.79 | 26.79 | = | 17,095 | ÷ | 638,146,665 | |
| Feb 13, 2020 | 0.81 | = | 59.13 | ÷ | 73.44 | 73.44 | = | 47,007 | ÷ | 640,093,995 | |
| Feb 15, 2019 | 0.78 | = | 51.08 | ÷ | 65.45 | 65.45 | = | 44,438 | ÷ | 678,950,098 | |
| Feb 23, 2018 | 0.92 | = | 53.46 | ÷ | 58.34 | 58.34 | = | 41,244 | ÷ | 706,913,358 | |
| Feb 13, 2017 | 0.92 | = | 50.06 | ÷ | 54.24 | 54.24 | = | 39,639 | ÷ | 730,770,638 | |
| Feb 5, 2016 | 0.80 | = | 42.01 | ÷ | 52.28 | 52.28 | = | 40,704 | ÷ | 778,508,621 | |
| Feb 11, 2015 | 0.92 | = | 44.98 | ÷ | 48.97 | 48.97 | = | 40,362 | ÷ | 824,271,663 | |
| Feb 24, 2014 | 0.73 | = | 32.45 | ÷ | 44.47 | 44.47 | = | 37,773 | ÷ | 849,378,918 | |
| Feb 13, 2013 | 0.34 | = | 14.78 | ÷ | 43.06 | 43.06 | = | 36,670 | ÷ | 851,590,992 | |
| Feb 10, 2012 | 0.26 | = | 10.89 | ÷ | 41.53 | 41.53 | = | 35,115 | ÷ | 845,519,629 | |
| Feb 16, 2011 | 0.31 | = | 11.82 | ÷ | 38.04 | 38.04 | = | 31,755 | ÷ | 834,829,734 | |
| Feb 24, 2010 | 0.36 | = | 12.75 | ÷ | 35.73 | 35.73 | = | 28,063 | ÷ | 785,464,490 | |
| Mar 2, 2009 | 0.14 | = | 4.59 | ÷ | 32.50 | 32.50 | = | 22,697 | ÷ | 698,464,807 | |
| Feb 15, 2008 | 0.26 | = | 17.32 | ÷ | 65.55 | 65.55 | = | 19,154 | ÷ | 292,217,061 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31).
1 US$
2 Data adjusted for splits and stock dividends.
3 Closing price as at the filing date of Delta Air Lines Inc. Annual Report.
The Price-to-Sales (P/S) ratio demonstrates a long-term transition in market valuation, moving from a period of significant undervaluation relative to revenue to a higher, more stabilized multiple, punctuated by a severe anomaly in 2021. This trend reflects shifting investor sentiment and the impact of external macroeconomic shocks on revenue generation.
- Initial Valuation Phase (2008–2013)
- During this period, the P/S ratio remained consistently low, fluctuating between 0.14 and 0.36. A trough was reached in 2009 with a ratio of 0.14, coinciding with a sharp decline in both share price and sales per share. The market assigned a minimal multiple to revenue during this stage, suggesting high perceived risk or systemic industry headwinds.
- Valuation Expansion and Stabilization (2014–2020)
- A structural shift occurred in 2014, where the P/S ratio jumped to 0.73, more than doubling the previous year's value. For the subsequent six years, the ratio largely stabilized within a range of 0.78 to 0.92. This indicates a period of increased investor confidence and a higher premium placed on each dollar of sales, even as sales per share grew steadily from 44.47 in 2014 to a peak of 73.44 in 2020.
- Volatility and Revenue Contraction (2021–2022)
- The P/S ratio experienced a dramatic spike to 1.62 in 2021. This anomaly was driven by a severe contraction in sales per share, which plummeted to 26.79, while the share price remained relatively resilient at 43.29. This decoupling suggests the market priced in a recovery rather than current revenue performance. By 2022, the ratio normalized to 0.91 as sales per share recovered to 46.72, returning the valuation to the historical baseline established between 2015 and 2020.
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Comparison to Competitors
Delta Air Lines Inc., P/S, long-term trends, comparison to competitors
| Delta Air Lines Inc. | FedEx Corp. | Uber Technologies Inc. | Union Pacific Corp. | United Airlines Holdings Inc. | United Parcel Service Inc. | |
|---|---|---|---|---|---|---|
| Feb 11, 2022 | 0.91 | 0.94 | 3.90 | 7.08 | 0.63 | 1.87 |
| Feb 12, 2021 | 1.62 | 0.62 | 9.07 | 7.00 | 1.11 | 1.66 |
| Feb 13, 2020 | 0.81 | 0.64 | 4.00 | 5.85 | 0.40 | 1.23 |
| Feb 15, 2019 | 0.78 | 0.94 | — | 5.12 | 0.57 | 1.34 |
| Feb 23, 2018 | 0.92 | 0.96 | — | 4.67 | 0.50 | 1.37 |
| Feb 13, 2017 | 0.92 | 0.85 | — | 4.43 | 0.64 | 1.54 |
| Feb 5, 2016 | 0.80 | 1.02 | — | 2.91 | 0.49 | 1.48 |
| Feb 11, 2015 | 0.92 | 0.95 | — | 4.48 | 0.67 | 1.58 |
| Feb 24, 2014 | 0.73 | 0.74 | — | 3.67 | 0.44 | 1.59 |
| Feb 13, 2013 | 0.34 | 0.68 | — | 2.99 | 0.24 | 1.46 |
| Feb 10, 2012 | 0.26 | 0.76 | — | 2.85 | 0.19 | 1.39 |
| Feb 16, 2011 | 0.31 | 0.70 | — | 2.73 | 0.35 | 1.47 |
| Feb 24, 2010 | 0.36 | 0.50 | — | 2.22 | 0.18 | 1.29 |
| Mar 2, 2009 | 0.14 | 0.63 | — | 1.38 | 0.03 | 0.80 |
| Feb 15, 2008 | 0.26 | 1.03 | — | 2.02 | 0.18 | 1.46 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31).
Comparison to Sector (Transportation)
Delta Air Lines Inc., P/S, long-term trends, comparison to sector (transportation)
| Delta Air Lines Inc. | Transportation | |
|---|---|---|
| Feb 11, 2022 | 0.91 | 2.03 |
| Feb 12, 2021 | 1.62 | 2.19 |
| Feb 13, 2020 | 0.81 | 1.51 |
| Feb 15, 2019 | 0.78 | 1.48 |
| Feb 23, 2018 | 0.92 | 1.44 |
| Feb 13, 2017 | 0.92 | 1.48 |
| Feb 5, 2016 | 0.80 | 1.31 |
| Feb 11, 2015 | 0.92 | 1.61 |
| Feb 24, 2014 | 0.73 | 1.37 |
| Feb 13, 2013 | 0.34 | 1.16 |
| Feb 10, 2012 | 0.26 | 1.11 |
| Feb 16, 2011 | 0.31 | 1.22 |
| Feb 24, 2010 | 0.36 | 0.99 |
| Mar 2, 2009 | 0.14 | 0.71 |
| Feb 15, 2008 | 0.26 | 1.20 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31).
Comparison to Industry (Industrials)
Delta Air Lines Inc., P/S, long-term trends, comparison to industry (industrials)
| Delta Air Lines Inc. | Industrials | |
|---|---|---|
| Feb 11, 2022 | 0.91 | 2.07 |
| Feb 12, 2021 | 1.62 | 2.14 |
| Feb 13, 2020 | 0.81 | 1.77 |
| Feb 15, 2019 | 0.78 | 1.58 |
| Feb 23, 2018 | 0.92 | 1.71 |
| Feb 13, 2017 | 0.92 | 1.68 |
| Feb 5, 2016 | 0.80 | 1.48 |
| Feb 11, 2015 | 0.92 | 1.65 |
| Feb 24, 2014 | 0.73 | 1.57 |
| Feb 13, 2013 | 0.34 | 1.31 |
| Feb 10, 2012 | 0.26 | 1.27 |
| Feb 16, 2011 | 0.31 | 1.39 |
| Feb 24, 2010 | 0.36 | 1.09 |
| Mar 2, 2009 | 0.14 | 0.71 |
| Feb 15, 2008 | 0.26 | 1.62 |
Based on: 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31).