Is Delta Air Lines, Inc. overvalued or undervalued?

As of 10 July 2025, Delta Air Lines, Inc. has moved from an expensive valuation to a fair one. The company appears to be fairly valued based on its P/E ratio of 9, which is competitive compared to peers like United Airlines Holdings, Inc. at 8.92 and significantly lower than the expensive Southwest Airlines Co. at 43.59. Additionally, Delta's EV to EBITDA stands at 5.50, which is also favorable compared to the industry average.
With a return on equity (ROE) of 24.26% and a return on capital employed (ROCE) of 21.08%, Delta demonstrates strong profitability metrics. However, its recent stock performance has lagged behind the S&P 500, with a year-to-date return of -1.70% compared to the index's 12.22%. This suggests that while the stock is fairly valued, it may face challenges in the near term relative to broader market performance.