Delta Air Lines is undervalued according to Wolfteam Ltd.'s estimates.
Delta Air Lines' intrinsic value is 60 billion USD compared with Delta Air Lines' current market capitalization of 26.77 billion USD.
With Price/Sales and Price/Earnings ratios of 0.48 and 8.93 respectively Delta Air Lines is grossly undervalued.
The price of oil, the main input into Delta Air Lines' business is not prohibitively high and can be almost fully hedged out.
2 years of the coronavirus COVID-19 restrictions made people thirsty for travel and tourism is now close to its peak 2019. And tourism and travel will grow further as a recreational vehicle, which enhances well being and prolongs life expectancy.
In 2018 Delta Air Lines had a net profit margin of 8.86 while in 2022 the net profit margin was 2.61.
But in the last reported quarter Delta Air Lines' net profit margin was 11.73 which shows a return to profitability for Delta Air Lines. Delta Air Lines' newly found profitability will unlock the tremendous value inherent in Delta Air Lines currently is Wolfteam Ltd.'s corporate opinion, based on intrinsic analysis, asset base and multiples comparisons.
Other triggers could be a lower price of oil and peaceful, recent resolution of the current geopolitical tensions.
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