Delek US Holdings, Inc. (DK) Stock Valuation — DCF Analysis
Oil & Gas Refining & Marketing · NYSE
Current Price
$47.22
Intrinsic Value
Outside reliable range
COMPETITIVE MOAT
↑Optimization Plan Drives Margins
Delek's Enterprise Optimization Plan effectively boosts margins and lowers costs. This strategy enhances cash flow generation without requiring significant new capital investment.
↑Refinery Upgrades Enhance Performance
Strategic refinery upgrades have contributed to Delek's strong performance. These improvements allow the company to capitalize on favorable refining market conditions.
↑Cost Efficiencies
The company's focus on enterprise optimization has led to demonstrable cost reductions. This operational efficiency directly translates to improved profitability and cash flow.
INVESTMENT RISKS
↓Valuation Concerns
Delek's significant stock price appreciation has raised concerns about its current valuation. The rapid gains may indicate the stock is becoming overvalued.
↓Market Condition Volatility
The refining industry is subject to volatile market conditions. Strong refining conditions that benefited Delek recently may not persist.
↓Potential for Overvaluation
Despite recent gains, the stock's rapid surge may have outpaced its fundamental value. This could lead to a correction if market sentiment shifts.
Base case
DK base case valuation
Base case assumptions: 13.8% annual growth, 10.0% discount rate, 6x exit multiple, 5 year projection. Data as of 2026-06-12.
This base case uses default assumptions and is not financial advice. The intrinsic value changes significantly when the growth rate or discount rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the DK valuation
Adjust the growth rate, discount rate, and exit multiple to see how the intrinsic value and margin of safety for Delek US Holdings, Inc. respond.
Open DCF Calculator for DKCompany Overview
Delek US Holdings, Inc. is an integrated downstream energy corporation operating within the United States. Its operations are divided into three core segments: Refining, Logistics, and Retail. The Refining segment processes crude oil and other raw materials to produce a variety of petroleum-based goods, such as gasoline, diesel, aviation fuel, and asphalt. These products are distributed through both company-owned and third-party facilities. This segment maintains and runs four independent refineries situated in Tyler, Texas; El Dorado, Arkansas; Big Spring, Texas; and Krotz Springs, Louisiana, alongside three biodiesel production plants located in Crossett, Arkansas; Cleburne, Texas; and New Albany. The Logistics division focuses on the collection, transportation, and storage of crude oil, intermediate products, and refined petroleum. It also handles the marketing, distribution, transport, and storage of refined products for external clients. Its infrastructure includes approximately 400 miles of crude oil pipelines, around 450 miles of refined product pipelines, and a crude oil gathering network spanning roughly 900 miles. Additionally, it features associated crude oil storage tanks with a combined active capacity of about 10.2 million barrels, and it operates ten light product distribution terminals. Marketing of light products also occurs through external terminals. The Retail segment manages 248 convenience stores, which are either owned or leased, primarily concentrated in West Texas and New Mexico. These stores provide various types of gasoline and diesel under the DK or Alon brands, as well as an assortment of food items, services, tobacco products, alcoholic and non-alcoholic beverages, general merchandise, and money order services to the public. These retail outlets largely operate under the 7-Eleven, DK, or Alon brand names. Delek US Holdings, Inc. serves a broad customer base, including major oil companies, independent refiners and marketers, jobbers, distributors, utility and transportation firms, the U.S. government, and independent retail fuel operators. The company was established in 2001, and its corporate headquarters are located in Brentwood, Tennessee.
Financial Metrics — DK Stock Valuation Data
Revenue/Share (TTM)
$178.14
FCF/Share (TTM)
$8.03
ROIC (TTM)
-7.6%
ROE (TTM)
-37.7%
P/FCF
6.0x
EV/EBITDA
7.8x
FCF Yield
16.72%
Debt/Equity
61.95x
Based on trailing twelve-month data, DK shows a free cash flow per share of $8.03 and a ROIC of -7.6%, key inputs for stock valuation using the DCF method. The P/FCF ratio of 6.0x and FCF yield of 16.72% are important context metrics when evaluating DK's stock valuation relative to peers.
Frequently Asked Questions
What is the intrinsic value of DK?
Delek US Holdings, Inc. currently generates $8.03 in free cash flow per share. At the current price of $47.22, a DCF model would discount these cash flows at an appropriate WACC and apply a terminal growth rate to arrive at an intrinsic value. The result depends heavily on your growth and discount rate assumptions — a 1% change in WACC typically shifts the fair value estimate by 10-15%. In MiniValuator the model uses a single discount rate that you can edit directly, 10% by default, rather than a computed WACC.
Is DK undervalued?
DK trades at a P/FCF ratio of 6.0x with a free cash flow yield of 16.72%. This relatively low P/FCF may suggest the stock is attractively priced relative to its cash generation. However, whether DK is truly undervalued requires comparing the DCF intrinsic value to the current market price and evaluating whether the margin of safety is sufficient for your risk tolerance.
How do I value DK stock using DCF?
To perform a DCF valuation on Delek US Holdings, Inc.: (1) Start with the trailing free cash flow per share ($8.03) as the base, (2) project future FCF growth over 5-10 years based on Oil & Gas Refining & Marketing industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting DK's risk profile — with a debt-to-equity of 61.95x, capital structure is an important factor, and (4) add a terminal value for cash flows beyond the projection period.
What is DCF valuation and how does it apply to DK?
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For Delek US Holdings, Inc., this means projecting how much free cash flow the company will produce over the next 5-10 years, shaped by Oil & Gas Refining & Marketing trends, then discounting those amounts to today's dollars. DK's ROIC of -7.6% suggests the company may face challenges generating returns above its cost of capital.
How does WACC affect DK stock valuation?
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For DK, with a debt-to-equity ratio of 61.95x, the capital structure directly influences WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%. At an EV/EBITDA of 7.8x, the market's implied discount rate can be reverse-engineered for comparison. In MiniValuator you set this discount rate yourself as a single editable number, 10% by default, instead of computing a formal WACC.
Learn More
- See DK PE Valuation → — Earnings-based stock valuation using PE ratio analysis
- DCF Methodology — Step-by-step guide to discounted cash flow analysis
- PE Methodology — Guide to PE ratio stock valuation
- WACC — Understanding the discount rate used in DCF
- Margin of Safety — How to evaluate downside protection
- Intrinsic Value — How to evaluate stock fair value
- How to Calculate Intrinsic Value — Complete guide for investors
Related Valuations
All Energy valuationsDCF and P/E value DK with different methods and assumptions, so the two conclusions can differ. Compare the P/E fair value.
Price as of 2026-06-12. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.