Understanding the true value of Delta Air Lines requires digging beyond surface numbers. Despite generating a solid $61.6 billion in revenue and holding a book value of nearly $27 per share, the stock trades at a high price-to-earnings ratio of about 34.3X, reflecting investor optimism but also heightened risk. The company's current ratio of 0.57 suggests tight liquidity, and with total debt at $22.77 billion, financial flexibility is limited. While Delta's net income from continuing operations stands at $3.5 billion, the probability of bankruptcy remains a concern at over 37%. Its valuation metrics, including a price-to-sales ratio of 0.60X and a price-to-earnings-to-growth ratio nearing 40X, indicate that the stock may be priced for growth that’s yet to materialize fully. For investors, weighing Delta’s resilient revenue and earnings against its debt load and liquidity constraints is key to unlocking its true investment potential. Since many baby boomers remain cautious about the airline industry, it’s worth taking a closer look at Delta Air Lines. This year could present a stronger opportunity for investors holding Delta shares. Is the current valuation fair, or does it offer a compelling entry point? We’ll break down Delta’s financial health and market position to help you decide whether now is the right time to consider adding it to your portfolio.
We determine the current worth of Delta Air Lines using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Delta Air Lines based exclusively on its
fundamental and basic
technical indicators. By analyzing Delta Air's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Delta Air's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Delta Air. We calculate exposure to Delta Air's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Delta Air's related companies.
Delta Air Lines Investment Alerts
Delta investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Delta Air Lines performance across your portfolios.Please check all
investment alerts for Delta
Delta Air Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Delta value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Delta Air competition to find
correlations between indicators driving the intrinsic value of Delta.
Delta Air Gross Profit
Delta Air Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Delta Air previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Delta Air Gross Profit growth over the last 10 years. Please check Delta Air's
gross profit and other
fundamental indicators for more details.
Breaking down Delta Air Indicators
The latest indifference towards the small price fluctuations of Delta Air Lines could raise concerns from institutional investors as the firm is trading at a share price of
57.12 on very low momentum in volume. The company executives did not add any value to Delta Air investors in
September. However, most investors can still diversify their portfolios with Delta Air Lines to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.1. The current volatility is consistent with the ongoing market swings in
September 2025 as well as with Delta Air unsystematic, company-specific events.
Margins Breakdown
Delta profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Delta Air itself as indicators of financial health and management effectiveness.
Please look more closely at the different varieties of Delta Air profit margins.
0.13
Operating Profit Margin
0.0793
Pretax Profit Margin
| Pretax Profit Margin | 0.0793 |
| Operating Profit Margin | 0.13 |
| Net Profit Margin | 0.0589 |
| Gross Profit Margin | 0.42 |
Delta Air PTB Ratio is increasing over the last 8 years. The previous year's value of Delta Air PTB Ratio was 2.29. Further, Delta Air Dividend Yield is increasing over the last 8 years. The latest value of Delta Air Dividend Yield is 0.01. A penny saved is a penny earned, and when it comes to Delta Air Lines, understanding its valuation reveals a nuanced picture. Despite a current ratio of 0.57X and significant debt of 22.77 billion, the company boasts a solid net asset value of 75.37 billion and a trailing PE of 8.30X, indicating potential undervaluation. With a market capitalization of 37.3 billion and a forward dividend yield of 1.32%, Delta offers an attractive income stream amid modest revenue growth of nearly zero. While its risk-adjusted performance stands at 0.0582, the company's strong cash flow from operations of 8.03 billion and a return on assets of 4.52% suggest resilience, making it a strategic pick for investors willing to navigate its debt levels and industry volatility..
Will price continue to rise in November 2025?
Delta Air Lines’ semi-deviation has fallen to 1.6, indicating that recent price swings are less erratic. This smoother movement hints at a more stable outlook as we approach November 2025, making the stock potentially more appealing to those seeking steadiness amid market ups and downs. If this trend of reduced volatility persists, Delta’s shares might hold onto recent gains or even push higher. However, staying aware of industry shifts and economic signals remains essential. With a skewness of 2.29 and kurtosis of 8.47, Delta shows relatively low overall volatility, which can help investors better gauge risk during different market conditions. Keep in mind, during downturns, increased volatility can lead to sharper price drops, often prompting portfolio adjustments. Monitoring these trends can help in making smarter trading decisions.
Our Final Take On Delta Air
When is the right time to buy or sell Delta Air Lines? Buying stocks such as Delta Air isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily basis.
With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither acquire nor trade any shares of Delta Air at this time. The Delta Air Lines risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Delta Air.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Delta Air Lines. Please refer to our
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