Historical Valuation
Southwest Airlines Co (LUV) is now in the Fair zone, suggesting that its current forward PE ratio of 15.57 is considered Fairly compared with the five-year average of 28.54. The fair price of Southwest Airlines Co (LUV) is between 13.77 to 126.77 according to relative valuation methord.
Relative Value
Fair Zone
13.77-126.77
Current Price：42.92
Fair
P/E
EV/EBITDA
EV/EBIT
P/S
P/OCF
P/FCF
1Y
3Y
5Y
Trailing
Forward
Southwest Airlines Co (LUV) has a current Price-to-Book (P/B) ratio of 2.75. Compared to its 3-year average P/B ratio of 1.82 , the current P/B ratio is approximately 51.10% higher. Relative to its 5-year average P/B ratio of 2.19, the current P/B ratio is about 25.16% higher. Southwest Airlines Co (LUV) has a Forward Free Cash Flow (FCF) yield of approximately -1.18%. Compared to its 3-year average FCF yield of -5.35%, the current FCF yield is approximately -78.02% lower. Relative to its 5-year average FCF yield of -2.12% , the current FCF yield is about -44.65% lower.
P/B
Median3y
1.82
Median5y
2.19
FCF Yield
Median3y
-5.35
Median5y
-2.12
Competitors Valuation Multiple
AI Analysis for LUV
The average P/S ratio for LUV competitors is 0.44, providing a benchmark for relative valuation. Southwest Airlines Co Corp (LUV.N) exhibits a P/S ratio of 0.71, which is 63.46% above the industry average. Given its robust revenue growth of 1.15%, this premium appears unsustainable.
Performance Decomposition
AI Analysis for LUV
1Y
3Y
5Y
Market capitalization of LUV increased by 0.00% over the past 1 year. The primary factor behind the change was an decrease in Unknown from 0.00 to 0.00.
The secondary factor is the Unknown, contributed 0.00%to the performance.
Overall, the performance of LUV in the past 1 year is driven by Unknown.
People Also Watch
Frequently Asked Questions
Is LUV currently overvalued or undervalued?
Southwest Airlines Co (LUV) is now in the Fair zone, suggesting that its current forward PE ratio of 15.57 is considered Fairly compared with the five-year average of 28.54. The fair price of Southwest Airlines Co (LUV) is between 13.77 to 126.77 according to relative valuation methord.
What is Southwest Airlines Co (LUV) fair value?
LUV's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average , adjusted by weights. The fair price of Southwest Airlines Co (LUV) is between 13.77 to 126.77 according to relative valuation methord.
How does LUV's valuation metrics compare to the industry average?
The average P/S ratio for LUV's competitors is 0.44, providing a benchmark for relative valuation. Southwest Airlines Co Corp (LUV) exhibits a P/S ratio of 0.71, which is 63.46% above the industry average. Given its robust revenue growth of 1.15%, this premium appears unsustainable.
What is the current P/B ratio for Southwest Airlines Co (LUV) as of Jan 09 2026?
As of Jan 09 2026, Southwest Airlines Co (LUV) has a P/B ratio of 2.75. This indicates that the market values LUV at 2.75 times its book value.
What is the current FCF Yield for Southwest Airlines Co (LUV) as of Jan 09 2026?
As of Jan 09 2026, Southwest Airlines Co (LUV) has a FCF Yield of -1.18%. This means that for every dollar of Southwest Airlines Co’s market capitalization, the company generates -1.18 cents in free cash flow.
What is the current Forward P/E ratio for Southwest Airlines Co (LUV) as of Jan 09 2026?
As of Jan 09 2026, Southwest Airlines Co (LUV) has a Forward P/E ratio of 15.57. This means the market is willing to pay $15.57 for every dollar of Southwest Airlines Co’s expected earnings over the next 12 months.
What is the current Forward P/S ratio for Southwest Airlines Co (LUV) as of Jan 09 2026?
As of Jan 09 2026, Southwest Airlines Co (LUV) has a Forward P/S ratio of 0.71. This means the market is valuing LUV at $0.71 for every dollar of expected revenue over the next 12 months.