Southwest Airlines Stock Current Valuation

LUV Stock

USD 31.97 0.18 0.57%

Valuation analysis of Southwest Airlines helps investors to measure Southwest Airlines' intrinsic value by examining its available valuation indicators, including the cash flow records, the balance sheet account changes and income statement patterns. Enterprise Value is likely to climb to about 23.8 B in 2024, whereas Enterprise Value Over EBITDA is likely to drop 4.59 in 2024. Fundamental drivers impacting Southwest Airlines' valuation include:

Price Book

1.8417

Enterprise Value

18.9 B

Enterprise Value Ebitda

10.0836

Price Sales

0.7004

Forward PE

20.2429

Fairly Valued

Today

31.97

Please note that Southwest Airlines' price fluctuation is very steady at this time. Calculation of the real value of Southwest Airlines is based on 3 months time horizon. Increasing Southwest Airlines' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.

Buy or Sell Advice Valuation Matrix

The fair value of the Southwest stock is determined by what a typical buyer is willing to pay for full or partial control of Southwest Airlines. Since Southwest Airlines is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Southwest Stock. However, Southwest Airlines' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.

Historical

Market 31.97

Real 32.12

Target 30.77

Hype 32.08

Naive 31.64

The intrinsic value of Southwest Airlines' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Southwest Airlines' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.

30.27

Downside

32.12

Real Value

Target Odds

Above Odds

Below Odds

33.97

Upside

Estimating the potential upside or downside of Southwest Airlines helps investors to forecast how Southwest stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Southwest Airlines more accurately as focusing exclusively on Southwest Airlines' fundamentals will not take into account other important factors:

Earnings

Estimates (0)

Low	Projected	High
0.17	0.36	0.20

Details

Hype

Prediction

Low	Estimated	High
30.23	32.08	33.93

Details

Potential

Annual Dividend

Low	Forecasted	High
0.47	0.48	0.49

Details

21 Analysts

Consensus

Low	Target Price	High
28.00	30.77	34.15

Details

Southwest Airlines Company Current Valuation Analysis

Southwest Airlines' Enterprise Value is a firm valuation proxy that approximates the current market value of a company. It is typically used to determine the takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that the company has on its balance sheet. When a takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.

Enterprise Value

Market Cap + Debt

-

Cash

More About Current Valuation | All Equity Analysis

Current Southwest Airlines Current Valuation

18.89 B

Most of Southwest Airlines' fundamental indicators, such as Current Valuation, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Southwest Airlines is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Southwest Current Valuation Driver Correlations

Understanding the fundamental principles of building solid financial models for Southwest Airlines is extremely important. It helps to project a fair market value of Southwest Stock properly, considering its historical fundamentals such as Current Valuation. Since Southwest Airlines' main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Southwest Airlines' historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Southwest Airlines' interrelated accounts and indicators.

	Total Assets	Total Stockholder Equity	Net Debt	Retained Earnings	Net Receivables	Total Liab	Total Current Assets	Short Term Debt	Intangible Assets	Accounts Payable	Current Deferred Revenue	Common Stock	Long Term Debt	Treasury Stock	Property Plant Equipment	Short Term Investments	Net Tangible Assets	Good Will	Long Term Debt Total	Capital Surpluse	Deferred Long Term Liab	Accumulated Depreciation	Long Term Investments	Short Long Term Debt	Cash And Equivalents	Net Invested Capital	Net Working Capital	Capital Stock
Total Assets		0.72	-0.46	0.89	0.92	0.99	0.9	0.47	0.06	-0.02	0.94	0.77	0.85	-0.86	0.74	0.77	0.77	0.69	0.76	0.83	-0.23	-0.92	0.69	-0.23	0.76	0.73	0.69	0.72
Total Stockholder Equity	0.72		0.0	0.77	0.62	0.64	0.49	0.61	0.2	0.49	0.61	0.86	0.42	-0.67	0.93	0.74	0.64	0.81	0.26	0.32	0.03	-0.72	0.7	0.19	0.42	0.28	0.32	0.26
Net Debt	-0.46	0.0		-0.38	-0.6	-0.54	-0.68	0.03	0.54	0.63	-0.63	0.05	-0.63	0.56	-0.12	-0.18	-0.53	0.2	-0.74	-0.78	0.33	0.51	-0.38	0.41	-0.73	-0.74	-0.64	-0.73
Retained Earnings	0.89	0.77	-0.38		0.89	0.84	0.7	0.54	0.0	0.14	0.88	0.64	0.61	-0.95	0.82	0.55	0.77	0.59	0.54	0.64	-0.07	-0.94	0.84	0.1	0.57	0.46	0.46	0.53
Net Receivables	0.92	0.62	-0.6	0.89		0.93	0.91	0.58	-0.1	-0.07	0.9	0.58	0.84	-0.93	0.61	0.64	0.79	0.48	0.8	0.86	-0.25	-0.93	0.74	-0.12	0.83	0.76	0.75	0.73
Total Liab	0.99	0.64	-0.54	0.84	0.93		0.94	0.44	0.02	-0.12	0.92	0.72	0.9	-0.86	0.67	0.76	0.78	0.62	0.84	0.89	-0.29	-0.91	0.66	-0.3	0.83	0.81	0.76	0.78
Total Current Assets	0.9	0.49	-0.68	0.7	0.91	0.94		0.4	-0.07	-0.26	0.84	0.54	0.98	-0.81	0.47	0.76	0.76	0.4	0.95	0.96	-0.36	-0.82	0.6	-0.41	0.95	0.94	0.91	0.8
Short Term Debt	0.47	0.61	0.03	0.54	0.58	0.44	0.4		0.21	0.56	0.32	0.52	0.32	-0.55	0.42	0.5	0.34	0.48	0.19	0.21	-0.04	-0.56	0.42	0.52	0.37	0.21	0.37	0.04
Intangible Assets	0.06	0.2	0.54	0.0	-0.1	0.02	-0.07	0.21		0.25	-0.06	0.32	-0.04	0.13	0.14	0.32	-0.11	0.38	-0.13	-0.14	-0.03	0.09	-0.08	0.08	-0.15	-0.13	-0.14	-0.11
Accounts Payable	-0.02	0.49	0.63	0.14	-0.07	-0.12	-0.26	0.56	0.25		-0.18	0.39	-0.32	0.03	0.29	0.2	-0.27	0.49	-0.5	-0.51	0.35	-0.07	0.02	0.74	-0.36	-0.43	-0.26	-0.61
Current Deferred Revenue	0.94	0.61	-0.63	0.88	0.9	0.92	0.84	0.32	-0.06	-0.18		0.63	0.75	-0.85	0.71	0.62	0.76	0.55	0.72	0.83	-0.2	-0.87	0.68	-0.25	0.71	0.67	0.56	0.79
Common Stock	0.77	0.86	0.05	0.64	0.58	0.72	0.54	0.52	0.32	0.39	0.63		0.49	-0.5	0.81	0.8	0.52	0.98	0.32	0.39	-0.06	-0.62	0.44	-0.04	0.42	0.34	0.32	0.39
Long Term Debt	0.85	0.42	-0.63	0.61	0.84	0.9	0.98	0.32	-0.04	-0.32	0.75	0.49		-0.74	0.4	0.73	0.73	0.35	0.97	0.95	-0.42	-0.76	0.55	-0.47	0.95	0.97	0.94	0.79
Treasury Stock	-0.86	-0.67	0.56	-0.95	-0.93	-0.86	-0.81	-0.55	0.13	0.03	-0.85	-0.5	-0.74		-0.7	-0.54	-0.85	-0.39	-0.69	-0.76	0.16	0.95	-0.87	-0.01	-0.74	-0.63	-0.65	-0.61
Property Plant Equipment	0.74	0.93	-0.12	0.82	0.61	0.67	0.47	0.42	0.14	0.29	0.71	0.81	0.4	-0.7		0.58	0.71	0.77	0.28	0.38	-0.02	-0.74	0.75	0.12	0.39	0.26	0.22	0.41
Short Term Investments	0.77	0.74	-0.18	0.55	0.64	0.76	0.76	0.5	0.32	0.2	0.62	0.8	0.73	-0.54	0.58		0.53	0.72	0.59	0.58	-0.13	-0.61	0.44	-0.24	0.67	0.66	0.67	0.43
Net Tangible Assets	0.77	0.64	-0.53	0.77	0.79	0.78	0.76	0.34	-0.11	-0.27	0.76	0.52	0.73	-0.85	0.71	0.53		0.37	0.71	0.77	-0.2	-0.78	0.83	-0.31	0.79	0.64	0.61	0.76
Good Will	0.69	0.81	0.2	0.59	0.48	0.62	0.4	0.48	0.38	0.49	0.55	0.98	0.35	-0.39	0.77	0.72	0.37		0.17	0.25	0.03	-0.54	0.34	0.05	0.24	0.18	0.16	0.25
Long Term Debt Total	0.76	0.26	-0.74	0.54	0.8	0.84	0.95	0.19	-0.13	-0.5	0.72	0.32	0.97	-0.69	0.28	0.59	0.71	0.17		0.97	-0.46	-0.68	0.51	-0.55	0.95	0.97	0.92	0.86
Capital Surpluse	0.83	0.32	-0.78	0.64	0.86	0.89	0.96	0.21	-0.14	-0.51	0.83	0.39	0.95	-0.76	0.38	0.58	0.77	0.25	0.97		-0.42	-0.75	0.56	-0.54	0.93	0.93	0.85	0.91
Deferred Long Term Liab	-0.23	0.03	0.33	-0.07	-0.25	-0.29	-0.36	-0.04	-0.03	0.35	-0.2	-0.06	-0.42	0.16	-0.02	-0.13	-0.2	0.03	-0.46	-0.42		0.24	0.13	0.19	-0.42	-0.48	-0.44	-0.38
Accumulated Depreciation	-0.92	-0.72	0.51	-0.94	-0.93	-0.91	-0.82	-0.56	0.09	-0.07	-0.87	-0.62	-0.76	0.95	-0.74	-0.61	-0.78	-0.54	-0.68	-0.75	0.24		-0.78	-0.01	-0.72	-0.65	-0.67	-0.57
Long Term Investments	0.69	0.7	-0.38	0.84	0.74	0.66	0.6	0.42	-0.08	0.02	0.68	0.44	0.55	-0.87	0.75	0.44	0.83	0.34	0.51	0.56	0.13	-0.78		0.04	0.58	0.45	0.46	0.5
Short Long Term Debt	-0.23	0.19	0.41	0.1	-0.12	-0.3	-0.41	0.52	0.08	0.74	-0.25	-0.04	-0.47	-0.01	0.12	-0.24	-0.31	0.05	-0.55	-0.54	0.19	-0.01	0.04		-0.42	-0.54	-0.38	-0.6
Cash And Equivalents	0.76	0.42	-0.73	0.57	0.83	0.83	0.95	0.37	-0.15	-0.36	0.71	0.42	0.95	-0.74	0.39	0.67	0.79	0.24	0.95	0.93	-0.42	-0.72	0.58	-0.42		0.95	0.94	0.81
Net Invested Capital	0.73	0.28	-0.74	0.46	0.76	0.81	0.94	0.21	-0.13	-0.43	0.67	0.34	0.97	-0.63	0.26	0.66	0.64	0.18	0.97	0.93	-0.48	-0.65	0.45	-0.54	0.95		0.96	0.79
Net Working Capital	0.69	0.32	-0.64	0.46	0.75	0.76	0.91	0.37	-0.14	-0.26	0.56	0.32	0.94	-0.65	0.22	0.67	0.61	0.16	0.92	0.85	-0.44	-0.67	0.46	-0.38	0.94	0.96		0.62
Capital Stock	0.72	0.26	-0.73	0.53	0.73	0.78	0.8	0.04	-0.11	-0.61	0.79	0.39	0.79	-0.61	0.41	0.43	0.76	0.25	0.86	0.91	-0.38	-0.57	0.5	-0.6	0.81	0.79	0.62

Click cells to compare fundamentals

Southwest Current Valuation Historical Pattern

Today, most investors in Southwest Airlines Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Southwest Airlines' growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's current valuation growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Southwest Airlines current valuation as a starting point in their analysis.

Southwest Airlines Current Valuation

Timeline

Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.

Competition

Predict Southwest Airlines

Enterprise Value Over Time

In accordance with the recently published financial statements, Southwest Airlines has a Current Valuation of 18.89 B. This is 159.34% higher than that of the Passenger Airlines sector and 18.0% higher than that of the Industrials industry. The current valuation for all United States stocks is 13.61% lower than that of the firm.

Southwest Current Valuation Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Southwest Airlines' direct or indirect competition against its Current Valuation to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Southwest Airlines could also be used in its relative valuation, which is a method of valuing Southwest Airlines by comparing valuation metrics of similar companies.

Southwest Airlines is currently under evaluation in current valuation category among its peers.

Southwest Airlines ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Southwest Airlines' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Southwest Airlines' managers, analysts, and investors.

Environmental

Governance

Social

Southwest Fundamentals

	Return On Equity	-0.0045
	Return On Asset	0.0046
	Profit Margin	(0) %
	Operating Margin	0 %
	Current Valuation	18.89 B
	Shares Outstanding	599.74 M
	Shares Owned By Insiders	0.35 %
	Shares Owned By Institutions	91.83 %
	Number Of Shares Shorted	39.78 M
	Price To Earning	29.96 X
	Price To Book	1.84 X
	Price To Sales	0.70 X
	Revenue	26.09 B
	Gross Profit	5.98 B
	EBITDA	2.39 B
	Net Income	465 M
	Cash And Equivalents	9.49 B
	Cash Per Share	23.03 X
	Total Debt	9.2 B
	Debt To Equity	0.93 %
	Current Ratio	1.58 X
	Book Value Per Share	17.36 X
	Cash Flow From Operations	3.16 B
	Short Ratio	4.92 X
	Earnings Per Share	(0.08) X
	Price To Earnings To Growth	0.47 X
	Target Price	29.76
	Number Of Employees	73.46 K
	Beta	1.15
	Market Capitalization	19.17 B
	Total Asset	36.49 B
	Retained Earnings	16.3 B
	Working Capital	1.7 B
	Current Asset	2.23 B
	Current Liabilities	1.43 B
	Annual Yield	0.02 %
	Five Year Return	1.03 %
	Net Asset	36.49 B
	Last Dividend Paid	0.72

About Southwest Airlines Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Southwest Airlines's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Southwest Airlines using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Southwest Airlines based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.

Please read more on our fundamental analysis page.

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Additional Tools for Southwest Stock Analysis

When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.

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Southwest Airlines Stock Current Valuation

Southwest Airlines Company Current Valuation Analysis

Enterprise Value

Market Cap + Debt

-

Cash

Current Southwest Airlines Current Valuation

Southwest Current Valuation Driver Correlations

Southwest Current Valuation Historical Pattern

Southwest Current Valuation Peer Comparison

Southwest Airlines ESG Sustainability

Southwest Fundamentals

About Southwest Airlines Fundamental Analysis

Thematic Opportunities

Explore Investment Opportunities

Additional Tools for Southwest Stock Analysis

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