Southwest Airlines Co
NYSE:LUV

Watchlist Manager
Southwest Airlines Co Logo
Southwest Airlines Co
NYSE:LUV
Watchlist
Price: 34.35 USD 1.45%
Market Cap: 20.6B USD
Have any thoughts about
Southwest Airlines Co?
Write Note

Relative Value

The Relative Value of one LUV stock under the Base Case scenario is 39.59 USD. Compared to the current market price of 34.35 USD, Southwest Airlines Co is Undervalued by 13%.

Relative Value is the estimated value of a stock based on various valuation multiples like P/E and EV/EBIT ratios. It offers a quick snapshot of a stock's valuation in relation to its peers and historical norms.

LUV Relative Value
Base Case
39.59 USD
Undervaluation 13%
Relative Value
Price
Worst Case
Base Case
Best Case

Valuation Multiples

vs History
68
vs Industry
31
Median 3Y
0.8
Median 5Y
1
Industry
0.5
Forward
0.7
vs History
vs Industry
5
Median 3Y
32.5
Median 5Y
26.3
Industry
9.2
Forward
44.2
vs History
4
vs Industry
9
Median 3Y
7.4
Median 5Y
7.1
Industry
3.5
vs History
vs Industry
Median 3Y
-8.2
Median 5Y
2.4
Industry
10.5
vs History
49
vs Industry
43
Median 3Y
1.9
Median 5Y
2
Industry
2.1
vs History
68
vs Industry
67
Median 3Y
0.6
Median 5Y
0.7
Industry
0.9
Forward
0.6
vs History
68
vs Industry
84
Median 3Y
0.9
Median 5Y
1
Industry
3
vs History
14
vs Industry
27
Median 3Y
7.6
Median 5Y
6.5
Industry
6.6
Forward
8.2
vs History
vs Industry
4
Median 3Y
11.6
Median 5Y
4.9
Industry
10.2
Forward
59.4
vs History
4
vs Industry
37
Median 3Y
5.5
Median 5Y
5.6
Industry
6.4
vs History
vs Industry
Median 3Y
-7.8
Median 5Y
-7
Industry
10
vs History
58
vs Industry
66
Median 3Y
0.7
Median 5Y
0.7
Industry
0.8

Multiples Across Competitors

LUV Competitors Multiples
Southwest Airlines Co Competitors

All Multiples
P/S
P/E
EV/EBITDA
EV/EBIT
All Countries
Close
Market Cap P/S P/E EV/EBITDA EV/EBIT
US
Southwest Airlines Co
NYSE:LUV
20.6B USD 0.8 -420 12.5 -45.1
US
Delta Air Lines Inc
NYSE:DAL
40.4B USD 0.7 8.7 5.5 9.1
US
United Airlines Holdings Inc
NASDAQ:UAL
33.3B USD 0.6 12 8.8 8.8
CH
Kinarus Therapeutics Holding AG
SIX:KNRS
19.5B CHF 0 -1 404.3 -1 404.9 -1 404.9
IE
Ryanair Holdings PLC
LSE:RYA
15.4B EUR 1.1 8 4.5 6.8
IN
Interglobe Aviation Ltd
NSE:INDIGO
1.8T INR 2.4 26.9 11.3 20.7
UK
International Consolidated Airlines Group SA
LSE:IAG
14.8B GBP 0.5 6.8 57.5 92
CN
Air China Ltd
SSE:601111
134.4B CNY 0.8 -282.3 -430.8 -430.8
CN
China Southern Airlines Co Ltd
SSE:600029
120B CNY 0.7 -33.7 63.3 63.3
SG
Singapore Airlines Ltd
SGX:C6L
19B SGD 1 9.6 4.9 10.5
US
American Airlines Group Inc
NASDAQ:AAL
11.4B USD 0.2 41.5 10.3 10.3
P/E Multiple
Earnings Growth P/E to Growth
US
Southwest Airlines Co
NYSE:LUV
Average P/E: 16.2
Negative Multiple: -420
209%
N/A
US
Delta Air Lines Inc
NYSE:DAL
8.7
14%
0.6
US
United Airlines Holdings Inc
NASDAQ:UAL
12
82%
0.1
CH
Kinarus Therapeutics Holding AG
SIX:KNRS
Negative Multiple: -1 404.3 N/A N/A
IE
R
Ryanair Holdings PLC
LSE:RYA
8
48%
0.2
IN
Interglobe Aviation Ltd
NSE:INDIGO
26.9
18%
1.5
UK
International Consolidated Airlines Group SA
LSE:IAG
6.8
7%
1
CN
Air China Ltd
SSE:601111
Negative Multiple: -282.3 N/A N/A
CN
China Southern Airlines Co Ltd
SSE:600029
Negative Multiple: -33.7 N/A N/A
SG
Singapore Airlines Ltd
SGX:C6L
9.6
-50%
N/A
US
American Airlines Group Inc
NASDAQ:AAL
41.5
132%
0.3
EV/EBIT Multiple
EBIT Growth EV/EBIT to Growth
US
Southwest Airlines Co
NYSE:LUV
Average EV/EBIT: 27.7
Negative Multiple: -45.1
360%
N/A
US
Delta Air Lines Inc
NYSE:DAL
9.1
20%
0.5
US
United Airlines Holdings Inc
NASDAQ:UAL
8.8
27%
0.3
CH
Kinarus Therapeutics Holding AG
SIX:KNRS
Negative Multiple: -1 404.9 N/A N/A
IE
R
Ryanair Holdings PLC
LSE:RYA
6.8
37%
0.2
IN
Interglobe Aviation Ltd
NSE:INDIGO
20.7
33%
0.6
UK
International Consolidated Airlines Group SA
LSE:IAG
92
25%
3.6
CN
Air China Ltd
SSE:601111
Negative Multiple: -430.8
7 484%
N/A
CN
China Southern Airlines Co Ltd
SSE:600029
63.3
180%
0.4
SG
Singapore Airlines Ltd
SGX:C6L
10.5
-46%
N/A
US
American Airlines Group Inc
NASDAQ:AAL
10.3
-9%
N/A

See Also

Discover More
Back to Top