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Delta Air Lines Inc. (DAL)


Price to FCFE (P/FCFE)

Intermediate level


Free Cash Flow to Equity (FCFE)

Delta Air Lines Inc., FCFE calculation

US$ in millions

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12 months ended Dec 31, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
Net income 3,935  3,577  4,373  4,526  659 
Net noncash charges 2,656  958  3,075  2,965  4,196 
Changes in certain assets and liabilities 423  613  (243) 436  92 
Net cash provided by operating activities 7,014  5,148  7,205  7,927  4,947 
Property and equipment additions (5,168) (3,891) (3,391) (2,945) (2,249)
Payments on long-term debt and finance lease obligations (3,052) (1,258) (1,709) (2,558) (2,928)
Proceeds from long-term obligations 3,745  2,454  450  1,038  1,020 
Free cash flow to equity (FCFE) 2,539  2,453  2,555  3,462  790 

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

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 decreased from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

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 646,742,854
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 2,539 
FCFE per share 3.93
Current share price (P) 55.88
Valuation Ratio
P/FCFE 14.23
Benchmarks
P/FCFE, Competitors1
Booking Holdings Inc. 23.21
Marriott International Inc. 15.70
McDonald’s Corp. 23.01
Starbucks Corp. 20.41
P/FCFE, Sector
Travel & Leisure 13.24
P/FCFE, Industry
Consumer Services 15.33

Based on: 10-K (filing date: 2019-02-15).

1 Click competitor name to see calculations.

If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the 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, 2018 Dec 31, 2017 Dec 31, 2016 Dec 31, 2015 Dec 31, 2014
No. shares of common stock outstanding1 678,950,098 706,913,358 730,770,638 778,508,621 824,271,663
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 2,539  2,453  2,555  3,462  790 
FCFE per share3 3.74 3.47 3.50 4.45 0.96
Share price1, 4 51.08 53.46 50.06 42.01 44.98
Valuation Ratio
P/FCFE5 13.66 15.41 14.32 9.45 46.93
Benchmarks
P/FCFE, Competitors6
Booking Holdings Inc. 24.98 15.04 17.25 11.84 12.85
Marriott International Inc. 14.47 29.33 8.83 12.39 16.77
McDonald’s Corp. 22.06 22.63 15.30 7.37 16.16
Starbucks Corp. 5.44 26.95 18.49 33.79 299.17
P/FCFE, Sector
Travel & Leisure 12.58 20.54 15.11 11.35 21.12
P/FCFE, Industry
Consumer Services 13.16 18.58 17.17 14.77 17.50

Based on: 10-K (filing date: 2019-02-15), 10-K (filing date: 2018-02-23), 10-K (filing date: 2017-02-13), 10-K (filing date: 2016-02-05), 10-K (filing date: 2015-02-11).

1 Data adjusted for splits and stock dividends.

2 See details »

3 2018 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,539,000,000 ÷ 678,950,098 = 3.74

4 Closing price as at the filing date of Delta Air Lines Inc.’s Annual Report.

5 2018 Calculation
P/FCFE = Share price ÷ FCFE per share
= 51.08 ÷ 3.74 = 13.66

6 Click competitor name to see calculations.

Valuation 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 2016 to 2017 but then decreased significantly from 2017 to 2018.