Using the industry peer median P/E multiple (trailing + forward), Delta Air Lines, Inc. (DAL) has a fair value of $184.23 based on 7 comparable companies in the Airlines, Airports & Air Services industry.
USD in millions except Fair Price. Subject company highlighted.
| Mkt Cap ($M) | Trailing P/E | Forward P/E | |
|---|---|---|---|
| Delta Air Lines, Inc.DAL | 43,965 | 8.8x | 11.6x |
| W.W. Grainger, Inc.GWW | 50,675 | 30.2x | 27.1x |
| AMETEK, Inc.AME | 48,649 | 33.2x | 26.4x |
| Rockwell Automation, Inc.ROK | 40,164 | 46.6x | 29.5x |
| Paychex, Inc.PAYX | 33,467 | 20.4x | 19.8x |
| Otis Worldwide CorporationOTIS | 30,234 | 22.2x | 19.1x |
| United Airlines Holdings, Inc.UAL | 29,923 | 9.0x | 7.6x |
| Xylem Inc.XYL | 29,148 | 30.5x | 23.7x |
| Industry Median | 30.2x | 23.7x | |
| (*) Profit after tax | 5,005 | 3,794 | |
| Equity Value | 151,239 | 89,738 | |
| (/) Outstanding shares | 654 | 654 | |
| Fair Price | $231 | $137 | |
This P/E relative valuation uses the industry peer median Price-to-Earnings ratio to estimate fair value. Both trailing (last 12 months) and forward (next fiscal year analyst estimates) P/E multiples are computed independently.
The industry median trailing P/E is applied to the company's TTM net income, and the forward P/E to analyst-estimated net income. Each produces an equity value divided by shares outstanding to yield a fair price per share. The selected fair value is the average of the trailing and forward legs.