Delta Air Lines Inc (DAL) is slightly overvalued and Southwest Airlines Co (LUV) is overvalued.
Both trade above our estimate of their intrinsic value. DAL is the closer of the two: -11%, against -64% for LUV.
Values as of the 22 Sept 2026 close.
7.0x EV/EBITDAR, with aircraft leases counted as debt, values the shares at $75.51; the price of $83.92 is 11% above that value.
Leak Score 46/100 on 10 of 12 signals
7.0x EV/EBITDAR, with aircraft leases counted as debt, values the shares at $25.69; the price of $42.08 is 64% above that value.
Leak Score 43/100 on 10 of 12 signals
| Metric | DAL | LUV |
|---|---|---|
| Verdict | Slightly overvalued | Overvalued |
| Price | $83.92 | $42.08 |
| Intrinsic value | $75.51 | $25.69 |
| Margin of safety | -11% | -64% |
| Leak Score | 46/100 (10/12) | 43/100 (10/12) |
| Market cap | $55.2B | $20.6B |
| Revenue growth, 5 years | 30.0% | 25.4% |
| Operating margin | 8.1% | 4.3% |
| Net margin | 5.8% | 2.8% |
| Return on equity | 20.1% | 11.1% |
| Debt to equity | 0.92 | 0.97 |
| P/E | 13.9x | 25.5x |
| Forward P/E | 9.9x | 9.1x |
| P/B | 2.5x | 2.9x |
| Dividend yield | 0.9% | 1.9% |