Valuation Analysis of Delta Airlines Based on ROPI Model

In the sudden coronavirus epidemic, 2020 has become the year of darkness for the entire global airline industry, which is facing the combined adverse and severe impact of an unprecedented decline in travel demand and a deep global economic recession. This research conducts a comprehensive stock examination of Delta Airlines, as one of the tops four U.S. airlines, through a combination of SWOT analysis techniques and Residual Operating Income (ROPI) valuation model, to explore whether Delta is significantly undervalued by the market in light of the huge impact on the airline industry from COVID-19. Based on the results of the study, the purpose of this paper is providing a demonstrate of the future growth potential of Delta Air Lines and to give recommendations for investment in the company's stock.