SOUTHWEST AIRLINES CO (LUV)

Air Transportation, Scheduled · Industrials · $11.8B

overvalued
Intrinsic Value (Consensus)
$9.56
Current Price
$15.80
Margin of Safety
-39.5%
39.5% Above Intrinsic Value
Value: $10
Price: $16

Valuation Model Estimates

Current Price: $15.80
DCF (Discounted Cash Flow)
$7.72
Graham Number
$13.79
Earnings Power Value
$7.67
Relative Value (P/E)
$15.80
Dividend Discount Model
$2.83
Consensus Value
$9.56

Model Assumptions

Discount Rate
10.3%
Growth Rate
3.9%
Terminal Growth
2.5%
Risk-Free Rate
4.3%

Discount rate derived from CAPM (risk-free rate + beta × market risk premium). Growth rate based on trailing earnings growth, capped at 20%.

Key Financials

EPS (TTM)
$0.79
EPS (Forward)
$0.82
Book Value
$10.70
P/E Ratio
20.0
Forward P/E
19.2
PEG Ratio
ROE
5.5%
Debt/Equity
62%
Revenue Growth
2.1%
Earnings Growth
3.9%
Dividend Yield
1.1%
Beta
1.00

Data last updated: 2026-06-12

Source: Yahoo Finance