SOUTHWEST AIRLINES Valuation
| SWN Stock | 30.06 0.17 0.56% |
At this time, the company appears to be overvalued. SOUTHWEST AIRLINES has a current Real Value of USD25.34 per share. The regular price of the company is USD30.06. Our model measures the value of SOUTHWEST AIRLINES from evaluating the company fundamentals such as net income of 539 M, and Current Valuation of 18.11 B as well as inspecting its technical indicators and probability of bankruptcy.
Overvalued
Today
Please note that SOUTHWEST AIRLINES's 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's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
SOUTHWEST AIRLINES's intrinsic value may or may not be the same as its current market price of 30.06, 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 30.06 | Real 25.34 | Hype 30.06 | Naive 29.85 |
The intrinsic value of SOUTHWEST AIRLINES's 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's 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's fundamentals will not take into account other important factors: SOUTHWEST AIRLINES Total Value Analysis
SOUTHWEST AIRLINES is at this time anticipated to have takeover price of 18.11 B with market capitalization of 22 B, debt of 8.05 B, and cash on hands of . 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 |
18.11 B | 22 B | 8.05 B |
SOUTHWEST AIRLINES Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The newest return on assets of SOUTHWEST implies not a very effective usage of assets in January.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 0.About SOUTHWEST AIRLINES Valuation
The stock valuation mechanism determines SOUTHWEST AIRLINES's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of SOUTHWEST AIRLINES based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, 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.8 Steps to conduct SOUTHWEST AIRLINES's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates SOUTHWEST AIRLINES's 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's valuation analysis, follow these 8 steps:- Gather financial information: Obtain SOUTHWEST AIRLINES's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine SOUTHWEST AIRLINES's revenue streams: Identify SOUTHWEST AIRLINES's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research SOUTHWEST AIRLINES's industry and market trends, including the size of the market, growth rate, and competition.
- Establish SOUTHWEST AIRLINES's growth potential: Evaluate SOUTHWEST AIRLINES's management, business model, and growth potential.
- Determine SOUTHWEST AIRLINES's 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's 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's price analysis, check to measure SOUTHWEST AIRLINES's 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's value examination focuses on studying past and present price action to predict the probability of SOUTHWEST AIRLINES's 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's price. Additionally, you may evaluate how the addition of SOUTHWEST AIRLINES to your portfolios can decrease your overall portfolio volatility.