LUV Valuation

Southwest Airlines Co

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25.790

-2.760(-9.670%)

Overview
Forecast
Valuation

LUV Relative Valuation

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. If the market price exceeds this fair value range, LUV is overvalued; if below, it's undervalued.

Historical Valuation

Southwest Airlines Co (LUV) is now in the Fair zone, suggesting that its current forward PS ratio of 0.54 is considered Fairly compared with the five-year average of 1.11. The fair price of Southwest Airlines Co (LUV) is between 24.92 to 67.49 according to relative valuation methord.

Relative Value

Fair Zone

24.92-67.49

Current Price：25.88

Fair

P/E

EV/EBITDA

EV/EBIT

P/S

P/OCF

P/FCF

Trailing

Forward

1.42

P/B

Median3y

1.82

Median5y

2.20

-10.52

FCF Yield

Median3y

-3.64

Median5y

-1.19

Competitors Valuation Multiple

The average P/S ratio for LUV's competitors is 0.27, providing a benchmark for relative valuation. Southwest Airlines Co Corp (LUV) exhibits a P/S ratio of 0.51, which is 86.93% above the industry average. Given its robust revenue growth of 1.57%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

LUV.N

Southwest Airlines Co