Southwest Airlines Valuation
| LUV Stock | MXN 640.00 22.00 3.32% |
At this time, the company appears to be overvalued. Southwest Airlines has a current Real Value of 594.02 per share. The regular price of the company is 640.0. Our model measures the value of Southwest Airlines from inspecting the company fundamentals such as Shares Outstanding of 594.29 M, return on equity of 0.0511, and Operating Margin of 0.05 % as well as reviewing its technical indicators and probability of bankruptcy.
Overvalued
Today
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.
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 640.0 | Real 594.02 | Hype 640.0 | Naive 641.39 |
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.
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: Southwest Airlines Total Value Analysis
Southwest Airlines is now anticipated to have takeover price of 379.35 B with market capitalization of 386.29 B, debt of 8.05 B, and cash on hands of 16.87 B. Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Southwest Airlines fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
379.35 B | 386.29 B | 8.05 B | 16.87 B |
Southwest Airlines Investor Information
About 76.0% of the company shares are owned by institutional investors. The book value of Southwest Airlines was now reported as 17.99. The company has Price/Earnings To Growth (PEG) ratio of 0.43. Southwest Airlines recorded earning per share (EPS) of 16.35. The entity last dividend was issued on the 7th of March 2023. Based on the key indicators related to Southwest Airlines' liquidity, profitability, solvency, and operating efficiency, Southwest Airlines is not in a good financial situation at the moment. It has a very high risk of going through financial straits in December.Southwest Airlines Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Southwest Airlines has an asset utilization ratio of 67.33 percent. This suggests that the Company is making 0.67 for each dollar of assets. An increasing asset utilization means that Southwest Airlines is more efficient with each dollar of assets it utilizes for everyday operations.Southwest Airlines Ownership Allocation
Southwest Airlines shows a total of 594.29 Million outstanding shares. The majority of Southwest Airlines outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Southwest Airlines to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Southwest Airlines. Please pay attention to any change in the institutional holdings of Southwest Airlines as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Southwest Airlines Profitability Analysis
The company reported the revenue of 23.81 B. Net Income was 539 M with profit before overhead, payroll, taxes, and interest of 5.98 B.About Southwest Airlines Valuation
Our relative valuation model uses a comparative analysis of Southwest Airlines. We calculate exposure to Southwest Airlines's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Southwest Airlines's related companies.Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. The company was founded in 1967 and is headquartered in Dallas, Texas. SOUTHWEST AIRLINES operates under Airlines classification in Mexico and is traded on Mexico Stock Exchange. It employs 54448 people.
8 Steps to conduct Southwest Airlines' Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Southwest Airlines' potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Southwest Airlines' valuation analysis, follow these 8 steps:- Gather financial information: Obtain Southwest Airlines' financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Southwest Airlines' revenue streams: Identify Southwest Airlines' primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Southwest Airlines' industry and market trends, including the size of the market, growth rate, and competition.
- Establish Southwest Airlines' growth potential: Evaluate Southwest Airlines' management, business model, and growth potential.
- Determine Southwest Airlines' financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Southwest Airlines' estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
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.