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Delta Air Lines Inc. (DAL)

Price to FCFE (P/FCFE)

Difficulty: Intermediate

Free Cash Flow to Equity (FCFE)

Delta Air Lines Inc., FCFE calculation

USD $ in millions

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12 months ended Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
Net income 3,577  4,373  4,526  659  10,540 
Net noncash charges 963  2,994  2,159  5,118  (6,599)
Changes in certain assets and liabilities 608  (162) 1,242  (830) 563 
Net cash provided by operating activities 5,148  7,205  7,927  4,947  4,504 
Property and equipment additions (3,891) (3,391) (2,945) (2,249) (2,568)
Payments on long-term debt and capital lease obligations (1,258) (1,709) (2,558) (2,928) (1,461)
Proceeds from long-term obligations 2,454  450  1,038  1,020  268 
Free cash flow to equity (FCFE) 2,453  2,555  3,462  790  743 
Item Description The company
FCFE Free cash flow to equity is the cash flow available to Delta Air Lines Inc.'s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Delta Air Lines Inc.'s FCFE declined from 2015 to 2016 and from 2016 to 2017.

Price to FCFE Ratio, Current

Delta Air Lines Inc., current P/FCFE calculation, comparison to benchmarks

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No. shares of common stock outstanding 685,618,701
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions) 2,453 
FCFE per share 3.58
Current share price (P) 53.11
Ratio
P/FCFE 14.84
Benchmarks
P/FCFE, Competitors
Booking Holdings Inc. 14.20
Marriott International Inc. 23.77
McDonald's Corp. 22.23
Starbucks Corp. 25.95
P/FCFE, Sector
Travel & Leisure 19.42
P/FCFE, Industry
Consumer Services 21.29

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

Otherwise, if company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.

Price to FCFE Ratio, Historical

Delta Air Lines Inc., historical P/FCFE calculation, comparison to benchmarks

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Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014 Dec 31, 2013
No. shares of common stock outstanding1 706,913,358 730,770,638 778,508,621 824,271,663 849,378,918
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)2 2,453  2,555  3,462  790  743 
FCFE per share4 3.47 3.50 4.45 0.96 0.87
Share price1, 3 53.46 50.06 42.01 44.98 32.45
Ratio
P/FCFE5 15.41 14.32 9.45 46.93 37.10
Benchmarks
P/FCFE, Competitors
Booking Holdings Inc. 15.04 17.25 11.84 12.85 24.05
Marriott International Inc. 29.33 8.83 12.39 16.77 14.80
McDonald's Corp. 22.63 15.30 7.37 16.16 19.77
Starbucks Corp. 26.95 18.49 33.79 299.17 24.56
P/FCFE, Sector
Travel & Leisure 20.54 15.11 11.35 21.12 22.43
P/FCFE, Industry
Consumer Services 18.45 17.08 14.84 17.76 19.37

1 Data adjusted for splits and stock dividends.

2 See Details »

3 Close price on the filing date of Delta Air Lines Inc.'s Annual Report.

2017 Calculations

4 FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,453,000,000 ÷ 706,913,358 = 3.47

5 P/FCFE = Share price ÷ FCFE per share
= 53.46 ÷ 3.47 = 15.41

Ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders' equity. Delta Air Lines Inc.'s P/FCFE ratio increased from 2015 to 2016 and from 2016 to 2017.