Delta Air Lines Inc., FCFF calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Net income (loss)	280)	(12,385)	4,767)	3,935)	3,577)
Net noncash charges	474)	7,202)	3,438)	2,390)	901)
Changes in certain assets and liabilities	2,510)	1,390)	220)	689)	670)
Net cash provided by (used in) operating activities	3,264)	(3,793)	8,425)	7,014)	5,148)
Cash paid for interest, net of tax¹	1,057)	605)	370)	285)	255)
Property and equipment additions	(3,247)	(1,899)	(4,936)	(5,168)	(3,891)
Flight and ground equipment acquired under finance leases	(1,049)	(381)	(650)	(93)	(261)
Free cash flow to the firm (FCFF)	25)	(5,468)	3,209)	2,038)	1,251)

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).

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Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Delta Air Lines Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Delta Air Lines Inc. FCFF decreased from 2019 to 2020 but then increased from 2020 to 2021 not reaching 2019 level.

Delta Air Lines Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017
Effective Income Tax Rate (EITR)
EITR¹	29.80%	20.50%	23.10%	24.10%	34.60%
Interest Paid, Net of Tax
Cash paid for interest, before tax	1,506)	761)	481)	376)	390)
Less: Cash paid for interest, tax²	449)	156)	111)	91)	135)
Cash paid for interest, net of tax	1,057)	605)	370)	285)	255)

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).

¹ See details »

² 2021 Calculation
Cash paid for interest, tax = Cash paid for interest × EITR
= 1,506 × 29.80% = 449

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Delta Air Lines Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	34,645)
Free cash flow to the firm (FCFF)	25)
Valuation Ratio
EV/FCFF	1,374.13
Benchmarks
EV/FCFF, Competitors¹
FedEx Corp.	24.39
Uber Technologies Inc.	39.79
Union Pacific Corp.	31.21
United Parcel Service Inc.	24.63
EV/FCFF, Sector
Transportation	23.85
EV/FCFF, Industry
Industrials	31.90

Based on: 10-K (reporting date: 2021-12-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Delta Air Lines Inc., historical EV/FCFF 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	42,689)	42,686)	46,127)	42,684)	43,987)
Free cash flow to the firm (FCFF)²	25)	(5,468)	3,209)	2,038)	1,251)
Valuation Ratio
EV/FCFF³	1,693.21	—	14.37	20.94	35.16
Benchmarks
EV/FCFF, Competitors⁴
FedEx Corp.	18.72	—	97.52	—	—
Uber Technologies Inc.	—	—	—	—	—
Union Pacific Corp.	26.42	25.20	25.44	—	—
United Parcel Service Inc.	16.95	28.23	39.28	—	—
EV/FCFF, Sector
Transportation	23.87	65.92	104.98	—	—
EV/FCFF, Industry
Industrials	28.18	65.99	30.06	—	—

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).

¹ See details »

² See details »

³ 2021 Calculation
EV/FCFF = EV ÷ FCFF
= 42,689 ÷ 25 = 1,693.21

⁴ Click competitor name to see calculations.

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Delta Air Lines Inc. (NYSE:DAL)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical