DAL — Valuation Models

Interactive models with editable assumptions. All calculations run client-side.

Valuation Summary

Model	Intrinsic Value	vs Price ($64.25)
DCF	$685.21	+966.5%
Graham Number	$74.38	+15.8%
Reverse DCF	—	implied g: 7.2%
DDM	$15.45	-76.0%
EV/EBITDA	$65.35	+1.7%

Values reflect default assumptions. Adjust inputs in each model below to update.

1 — Discounted Cash Flow (DCF)

Assumptions

Base FCF($B)Yahoo: $2.95B

Near-term growth (yrs 1–5)(%)Rev: 2.9% / EPS: 44.6%

Long-term growth (yrs 6–10)(%)

Terminal growth rate(%)

WACC(%)Computed: 7.72%

Computed WACC: 7.72%

Cost of equity (Re)11.66%(Rf 4.30% + β 1.34 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)66.25%

Debt weight (D/V)33.75%

Results

Intrinsic Value / share$910.44

Current Price$64.25

Upside / Downside+1317.0%

Net Debt (used)$17.06B

Sensitivity: WACC (rows) × Near-term g (cols)

WACC \ Near-term	36.6%	40.6%	44.6%	48.6%	52.6%
7.0%	$822.00	$951.22	$1095.86	$1257.26	$1436.83
8.0%	$638.32	$739.09	$851.84	$977.62	$1117.54
9.0%	$512.88	$594.22	$685.21	$786.69	$899.54
10.0%	$422.26	$489.57	$564.85	$648.79	$742.12
11.0%	$354.06	$410.84	$474.31	$545.07	$623.71

2 — Graham Number

Assumptions

MultiplierGraham used 22.5 (15× P/E × 1.5× P/B)

EPS (trailing)($)Yahoo: $7.66

Book Value / share($)Yahoo: $32.10

Results

Graham Number$74.38

Current Price$64.25

Margin of Safety+15.8%

Formula: √(22.5 × max(0,EPS) × max(0,BVPS))

3 — Reverse DCF (Implied Growth)

Assumptions

WACC(%)Computed: 7.72%

Terminal growth rate(%)

Computed WACC: 7.72%

Cost of equity (Re)11.66%(Rf 4.30% + β 1.34 × ERP 5.50%)

Cost of debt (Rd)0.00%(no debt / unavailable → 0%)

Tax rate (T)21.00%(US statutory fallback)

Equity weight (E/V)66.25%

Debt weight (D/V)33.75%

Results

Current Price$64.25

Implied Near-term FCF Growth3.5%

Historical Revenue Growth2.9%

Historical Earnings Growth44.6%

Base FCF (TTM)$2.95B

Implied growth is the FCF growth rate (yrs 1–5) that makes the DCF intrinsic value equal the current price. Long-term growth is set to half the implied near-term rate.

4 — Dividend Discount Model (DDM)

Assumptions

Annual dividend D0($/share)Yahoo: $0.75

Dividend growth rate (g)(%)

Required return (r)(%)

Results

DDM Intrinsic Value / share$15.45

Current Price$64.25

Upside / Downside-76.0%

Formula: D0 × (1+g) / (r − g)

5 — EV/EBITDA Multiple

Assumptions

EBITDA($B)Yahoo: $7.77B

Target EV/EBITDA multipleCurrent: 7.7×

Net Debt($B)Default: $17.06B

Results

Implied Equity Value / share$65.35

Current Price$64.25

Upside / Downside+1.7%

Implied EV$59.74B

Sensitivity: EV/EBITDA multiple (rows) × Net Debt (cols)

Mult \ Net Debt	$9.06B	$13.06B	$17.06B	$21.06B	$25.06B
3.7x	$30.00	$23.87	$17.75	$11.62	$5.50
5.7x	$53.80	$47.67	$41.55	$35.42	$29.30
7.7x	$77.59	$71.47	$65.35	$59.22	$53.10
9.7x	$101.39	$95.27	$89.15	$83.02	$76.90
11.7x	$125.19	$119.07	$112.94	$106.82	$100.70

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