Is Delta Air Lines, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Delta Air Lines, Inc. has moved from expensive to fair, indicating a more favorable assessment of its stock. The company appears to be fairly valued at this time. Key valuation ratios include a P/E ratio of 9, an EV to EBITDA of 5.50, and an EV to Sales of 0.75, which suggest that the stock is reasonably priced compared to its earnings and sales performance.
In comparison to peers, United Airlines Holdings, Inc. has a P/E ratio of 8.92 and an EV to EBITDA of 5.60, while Southwest Airlines Co. is deemed expensive with a P/E of 43.59. Delta's performance has been mixed, with a 1-year return of 7.93% compared to the S&P 500's 14.08%, but it has significantly outperformed the index over the 3-year period with a return of 91.58% versus 81.19%. Overall, Delta Air Lines, Inc. is fairly valued in the current market context.