LUV

NYSE

SOUTHWEST AIRLINES CO

Industrials, Passenger Airlines

$47.05

close 7 Aug 2026

+61.91%

52-week change

$23.02B

market cap

$28.98

$55.11

52-week range

Expected price

$51.83 – $63.35

Current price

$47.05

Signal

Could be undervalued

A historical-multiple reference, never a fair-value claim. The band uses only data public at each date and ends at the latest month — no forward estimates.

Current multiples

P/E (TTM)29.78x

P/S (TTM)0.77x

P/B3.25x

EV/EBITDA (TTM)9.66x

FCF yield (TTM)-1.76%

PEG (TTM, GAAP)—

Context

P/E, own 5-year average46.86x

P/E, sector median29.72x*

Price at 5-year median P/E$58.22*

Indicated dividend yield1.53%

Forward — analyst consensus

Forward P/E (FY2026)13.75x*

Forward P/E (FY2027)9.51x

Forward PEG0.31*

Consensus EPS FY2026 (23 analysts)$3.42

EPS growth (FY2026→FY2027)44.61%

Revenue growth (FY2026)17.45%

Street view

Price target (mean)$51.79*

Target upside10.07%

Ratings (buy / hold / sell)11 / 9 / 5

FY2026 EPS revisions, 30d (up / down)19 / 2

5-year history

Dashed line: average of month-end values

P/E (TTM)

P/S (TTM)

P/B

FCF yield (TTM)

Dividend yield

period to 30 Jun 2026, filed 23 Jul 2026, close 7 Aug 2026

Discounted cash flow

Ten projected years plus a perpetuity, prefilled from filings — a model to argue with, never a fair-value claim.

Free cash flow, last ten years and TTM

Assumptions

Growth rate, years 1–10%

Perpetual growth%Discount rate%

Base FCF$M

As filed — not assumptions

Current price$47.05

Cash & equivalents$3.79B

Total debt$5.95B

Shares outstanding489.21M

Result

DCF price per share-$23.16

Current price$47.05

Margin of safety-149.22%

PV of years 1–10-$3.48B

PV of terminal value-$5.69B

Equity value-$11.33B

Market-implied growth—

The base free cash flow is not positive; growing a negative flow is rarely a meaningful valuation.

Projected FCF, years 1–10

Hover for PV and growth

Projection detail

Override growth for any year; blank years use the uniform rate

Year	2026	2027	2028	2029	2030	2031	2032	2033	2034	2035	Terminal
Growth, %											2.5
FCF	-$425.25M	-$446.51M	-$468.84M	-$492.28M	-$516.89M	-$542.74M	-$569.88M	-$598.37M	-$628.29M	-$659.70M	-$12.29B
PV	-$393.75M	-$382.81M	-$372.18M	-$361.84M	-$351.79M	-$342.02M	-$332.52M	-$323.28M	-$314.30M	-$305.57M	-$5.69B

period to 30 Jun 2026, filed 23 Jul 2026, close 7 Aug 2026