Enterprise Value to EBITDA (EV/EBITDA)
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Delta Air Lines Inc. pages available for free this week:
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Present Value of Free Cash Flow to Equity (FCFE)
- Return on Equity (ROE) since 2007
- Total Asset Turnover since 2007
- Analysis of Revenues
- Analysis of Debt
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Delta Air Lines Inc., EBITDA calculation
US$ in millions
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).
- Net Income (Loss)
- The net income exhibited a growing trend from 2017 through 2019, increasing from 3,577 million USD to 4,767 million USD. This positive performance sharply reversed in 2020, with a significant loss of 12,385 million USD. In 2021, the net income showed a recovery, returning to a positive value of 280 million USD, although still considerably lower than pre-2020 levels.
- Earnings Before Tax (EBT)
- The earnings before tax followed a similar pattern, rising from 5,701 million USD in 2017 to 6,198 million USD in 2019. The company then experienced a steep decline in 2020, recording a loss of 15,587 million USD. By 2021, EBT had improved to 398 million USD, indicating a partial rebound but remaining below earlier years.
- Earnings Before Interest and Tax (EBIT)
- EBIT demonstrated growth from 6,097 million USD in 2017 up to 6,499 million USD in 2019. A pronounced downturn occurred in 2020 with a negative EBIT of 14,658 million USD. In 2021, EBIT increased to 1,677 million USD, showing a notable recovery though still underperforming compared to the 2017-2019 period.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA values increased from 8,332 million USD in 2017 to 9,080 million USD in 2019, reflecting operational expansion or cost efficiency. The company then experienced a significant downturn in 2020 with a negative EBITDA of 12,346 million USD. The figure rebounded to 3,675 million USD in 2021, suggesting a recovery in operational cash flows but still trailing pre-2020 amounts.
Enterprise Value to EBITDA Ratio, Current
Delta Air Lines Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| FedEx Corp. | |
| Uber Technologies Inc. | |
| Union Pacific Corp. | |
| United Airlines Holdings Inc. | |
| United Parcel Service Inc. | |
| EV/EBITDA, Sector | |
| Transportation | |
| EV/EBITDA, Industry | |
| Industrials | |
Based on: 10-K (reporting date: 2021-12-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Delta Air Lines Inc., historical EV/EBITDA calculation, comparison to benchmarks
| Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | Dec 31, 2017 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Enterprise value (EV)1 | ||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | ||||||
| Valuation Ratio | ||||||
| EV/EBITDA3 | ||||||
| Benchmarks | ||||||
| EV/EBITDA, Competitors4 | ||||||
| FedEx Corp. | ||||||
| Uber Technologies Inc. | ||||||
| Union Pacific Corp. | ||||||
| United Airlines Holdings Inc. | ||||||
| United Parcel Service Inc. | ||||||
| EV/EBITDA, Sector | ||||||
| Transportation | ||||||
| EV/EBITDA, Industry | ||||||
| Industrials | ||||||
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).
3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- The enterprise value has fluctuated slightly over the analyzed period. It started at approximately 43,987 million USD in 2017, decreased slightly to 42,684 million USD in 2018, increased to 46,127 million USD in 2019, then dropped back to around 42,686 million USD in 2020 and remained almost unchanged in 2021 at 42,689 million USD. This indicates relative stability in the company's market valuation with a peak in 2019.
- Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)
- EBITDA exhibited variability over the years. It initially decreased from 8,332 million USD in 2017 to 7,791 million USD in 2018, then increased to a peak of 9,080 million USD in 2019. A significant decline occurred in 2020, with EBITDA falling sharply to a negative value of -12,346 million USD, indicating substantial operating losses likely tied to extraordinary circumstances impacting the business. In 2021, EBITDA partially rebounded to 3,675 million USD, showing signs of recovery but remaining below pre-2020 levels.
- EV/EBITDA Ratio
- The EV/EBITDA ratio was relatively stable from 2017 to 2019, ranging between 5.08 and 5.48, reflecting consistent valuation multiples in line with earnings. In 2020, this ratio is not provided due to negative EBITDA, which renders the metric undefined. In 2021, the ratio surged dramatically to 11.62, primarily driven by the reduced EBITDA level compared to enterprise value. This indicates a valuation multiple that reflects either a market discount on earnings or expectations of recovery despite the recent operating losses.