Is It Too Late To Consider Delta Air Lines (DAL) After Its Strong Multi‑Year Run?

Simply Wall St.01-11

If you are wondering whether Delta Air Lines represents good value at its current price, or if the easy gains are already behind it, this article walks you through what the numbers suggest. The stock ...

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The stock ...</p>\n\n<a href=\"https://simplywall.st/stocks/us/transportation/nyse-dal/delta-air-lines/news/is-it-too-late-to-consider-delta-air-lines-dal-after-its-str\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BFMHRM44.USD","symbol_name":"NEUBERGER BERMAN GLOBAL EQUITY MEGATRENDS \"A\" (USD) ACC","start_time":0,"source_url":"https://simplywall.st/stocks/us/transportation/nyse-dal/delta-air-lines/news/is-it-too-late-to-consider-delta-air-lines-dal-after-its-str","article_id":"2602787534","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/266311-main-header/1585186778564"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/transportation/nyse-dal/delta-air-lines/news/is-it-too-late-to-consider-delta-air-lines-dal-after-its-str","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2602787534","pubTimestamp":1768087728,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"If you are wondering whether Delta Air Lines represents good value at its current price, or if the easy gains are already behind it, this article walks you through what the numbers suggest.\nThe stock most recently closed at US$72.31, with returns of 4.7% over the past week, 3.4% over the last month, 4.7% year to date, 9.3% over one year, 94.6% over three years and 85.9% over five years.\nRecent attention on the stock has centered on how investors are reassessing large US carriers and the...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BFMHRM44.USD":"NEUBERGER BERMAN GLOBAL EQUITY MEGATRENDS \"A\" (USD) ACC","BK4500":"航空公司","LU0128525689.USD":"TEMPLETON GLOBAL BALANCED \"A\"(USD) ACC","DCF":"Dreyfus Alcentra Global Credit Income 2024 Target Term Fund, Inc","LU1267930227.SGD":"TEMPLETON GLOBAL BALANCED \"AS\" (SGD) ACC A","DAL":"达美航空","LU0310800965.SGD":"FTIF - Templeton Global Balanced A Acc SGD","BK7095":"多种金属与采矿","LU0052756011.USD":"TEMPLETON GLOBAL BALANCED \"A\" (USD) INC","BK4588":"碎股","DAL.AU":"DALAROO METALS LTD","BK4008":"航空公司","BK4585":"ETF&股票定投概念"},"translate_title":"达美航空(DAL)在经历了多年的强劲运营后，现在考虑它是否为时已晚？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"DAL":1.5,"DAL.AU":1.5,"DCF":1},"content_text":"If you are wondering whether Delta Air Lines represents good value at its current price, or if the easy gains are already behind it, this article walks you through what the numbers suggest. The stock most recently closed at US$72.31, with returns of 4.7% over the past week, 3.4% over the last month, 4.7% year to date, 9.3% over one year, 94.6% over three years and 85.9% over five years. Recent attention on the stock has centered on how investors are reassessing large US carriers and the sector as a whole, including capacity, travel demand and cost pressures. For Delta, that discussion has helped frame whether its share price better reflects expectations for the business or if there is still a gap between price and value. On our simple 6 point valuation check, Delta Air Lines scores 4 out of 6. This suggests some aspects look cheaper than others, and we will unpack that using several valuation approaches before finishing with a broader way to think about what the stock might be worth.  Find out why Delta Air Lines's 9.3% return over the last year is lagging behind its peers. AdvertisementApproach 1: Delta Air Lines Discounted Cash Flow (DCF) Analysis A Discounted Cash Flow, or DCF, model takes estimates of the cash a company could generate in the future and discounts those projections back to today to arrive at an estimated value per share. For Delta Air Lines, the model used here is a 2 Stage Free Cash Flow to Equity approach, based on cash flow projections in $. The latest twelve month free cash flow is about $2.3b. Analyst estimates and extrapolated figures point to free cash flow of $3.8b in 2026 and $5.5b in 2029, with further projections extending out to 2035. Simply Wall St uses analyst forecasts where available, then extrapolates beyond the explicit forecast period to build a 10 year cash flow stream. Discounting those projected cash flows back to today leads to an estimated intrinsic value of about $140.94 per share. Compared to the recent share price of $72.31, this DCF output suggests the stock is around 48.7% undervalued according to these assumptions. Result: UNDERVALUED Our Discounted Cash Flow (DCF) analysis suggests Delta Air Lines is undervalued by 48.7%. Track this in your watchlist or portfolio, or discover 876 more undervalued stocks based on cash flows. DAL Discounted Cash Flow as at Jan 2026 Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Delta Air Lines. Approach 2: Delta Air Lines Price vs Earnings For profitable companies, the P/E ratio is a useful shorthand because it links what you pay for the stock to the earnings the business is already generating. It gives you a quick sense of how many dollars investors are willing to pay for each dollar of earnings. What counts as a normal or fair P/E depends on how the market views a company’s growth prospects and risk. Higher expected growth or lower perceived risk can support a higher P/E, while slower growth or higher risk usually calls for a lower one. Delta Air Lines currently trades on a P/E of 10.13x, compared with the Airlines industry average of about 9.49x and a broader peer group average of 32.11x. Simply Wall St also calculates a Fair Ratio of 14.61x, which is its proprietary view of what Delta’s P/E might be, given factors such as earnings growth, industry, profit margins, market cap and risk profile. This Fair Ratio can be more useful than a simple industry or peer comparison because it adjusts for company specific traits rather than treating all airlines or peers as equivalent. With the Fair Ratio above the current P/E, this framework suggests that Delta’s shares may be trading below what these factors would indicate. Result: UNDERVALUED NYSE:DAL P/E Ratio as at Jan 2026 P/E ratios tell one story, but what if the real opportunity lies elsewhere? Discover 1441 companies where insiders are betting big on explosive growth. Upgrade Your Decision Making: Choose your Delta Air Lines Narrative Earlier we mentioned that there is an even better way to understand valuation, so let us introduce you to Narratives. These are simply your story about Delta Air Lines, tied to your own assumptions for fair value, future revenue, earnings and margins, and then connected to a forecast and a value per share that you can compare with the current price to help decide when to buy or sell. On Simply Wall St’s Community page, Narratives are an easy, point and click tool used by millions of investors. They update automatically when new information such as earnings, news or guidance is added, so your story and fair value do not sit still while the company moves. For Delta, one investor Narrative on the platform currently implies a fair value of about US$49 per share, while another implies about US$74.61. This shows how two people can look at the same airline, plug in different revenue growth, margins, discount rates and future P/E assumptions, and reach very different but clearly framed views that you can compare directly with today’s US$72.31 share price. For Delta Air Lines, however, we will make it really easy for you with previews of two leading Delta Air Lines Narratives: 🐂 Delta Air Lines Bull Case Fair value in this narrative: US$74.61 per share Gap to that fair value versus the last close of US$72.31: about 3.1% below this narrative fair value Revenue growth assumption: 3.92% a year  Analysts in this view see steady revenue progress, with premium, loyalty and international travel as key supports for earnings over time. They factor in modest margin pressure, slightly higher share count and a future P/E of about 12.9x to reach a fair value of roughly US$74.61. This approach lines up with a blended analyst price target in the low US$70s and uses a discount rate of about 9.2% to bring those expectations back to today.  🐻 Delta Air Lines Bear Case Fair value in this narrative: US$59.84 per share Gap to that fair value versus the last close of US$72.31: about 20.9% above this narrative fair value Revenue growth assumption: 3.5% a year  This view leans on Delta’s strong execution on yield and costs, but still lands on a fair value of about US$59.84 that sits below the current share price. The author highlights thin margins, a leveraged balance sheet and sensitivity to shocks such as tariffs or weaker travel demand, and uses a lower future P/E multiple around 10x. Even though Delta is described as an industry leader, this narrative stresses that returns for shareholders could be limited if growth and profitability fall short of higher expectations baked into the market price.  Together, these Narratives frame a reasonable range around Delta’s current US$72.31 share price and give you two clear sets of assumptions to test against your own view of the business, its risks and what you think the stock is worth. Curious how numbers become stories that shape markets? Explore Community Narratives Do you think there's more to the story for Delta Air Lines? Head over to our Community to see what others are saying! NYSE:DAL 1-Year Stock Price Chart  This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: Manage All Your Stock Portfolios in One PlaceWe've created the ultimate portfolio companion for stock investors, and it's free.• Connect an unlimited number of Portfolios and see your total in one currency• Be alerted to new Warning Signs or Risks via email or mobile• Track the Fair Value of your stocksTry a Demo Portfolio for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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