Southwest Airlines Co
NYSE:LUV

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Southwest Airlines Co
NYSE:LUV
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Price: 34.35 USD 1.45% Market Closed
Market Cap: 20.6B USD
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Intrinsic Value

The intrinsic value of one LUV stock under the Base Case scenario is 37.24 USD. Compared to the current market price of 34.35 USD, Southwest Airlines Co is Undervalued by 8%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

LUV Intrinsic Value
37.24 USD
Undervaluation 8%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation History
Southwest Airlines Co

Intrinsic Value History
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Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

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Valuation History Unavailable

Historical valuation for LUV cannot be conducted due to limitations such as insufficient data or other constraints.

Valuation In Progress...
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Fundamental Analysis

34.35 USD
+1.45%
+1.45%
Benchmark
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Southwest Airlines Co
US
Airlines
Market Cap
20.6B USD
IPO
Jun 27, 1977
Employees
55 100
United States of America
Market Cap
20.6B USD
Industry
Airlines
IPO
Jun 27, 1977
Company Overview
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Financials
Annual
Quarterly
TTM
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TTM

Balance Sheet Decomposition
Southwest Airlines Co

Current Assets 11.9B
Cash & Short-Term Investments 9.4B
Receivables 1.2B
Other Current Assets 1.4B
Non-Current Assets 22.9B
PP&E 20.9B
Intangibles 970m
Other Non-Current Assets 1.1B
Current Liabilities 13.5B
Accounts Payable 1.5B
Accrued Liabilities 2.3B
Other Current Liabilities 9.7B
Non-Current Liabilities 10.9B
Long-Term Debt 5.1B
Other Non-Current Liabilities 5.9B
Efficiency

Earnings Waterfall
Southwest Airlines Co

Revenue
27.4B USD
Cost of Revenue
-8.2B USD
Gross Profit
19.2B USD
Operating Expenses
-19.6B USD
Operating Income
-361m USD
Other Expenses
312m USD
Net Income
-49m USD

Free Cash Flow Analysis
Southwest Airlines Co

Last Value
3-Years Average
FCF Margin
Conversion Rate
Fundamental Scores

LUV Profitability Score
Profitability Due Diligence

Southwest Airlines Co's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

Positive Gross Profit
Exceptional 3-Years Revenue Growth
Positive Revenue Growth Forecast
Positive 1-Year Revenue Growth
49/100
Profitability
Score

Southwest Airlines Co's profitability score is 49/100. The higher the profitability score, the more profitable the company is.

LUV Solvency Score
Solvency Due Diligence

Southwest Airlines Co's solvency score is 52/100. The higher the solvency score, the more solvent the company is.

Low D/E
Negative Net Debt
Long-Term Solvency
Short-Term Solvency
52/100
Solvency
Score

Southwest Airlines Co's solvency score is 52/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

LUV Price Targets Summary
Southwest Airlines Co

Wall Street analysts forecast LUV stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for LUV is 32.02 USD with a low forecast of 23.35 USD and a high forecast of 44.1 USD.

Lowest
Price Target
23.35 USD
32% Downside
Average
Price Target
32.02 USD
7% Downside
Highest
Price Target
44.1 USD
28% Upside
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Dividends

Dividend Yield
Lowest
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Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
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0
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100
Shareholder Yield

Current shareholder yield for LUV is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
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Highest
Buyback Yield
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Average
Highest
Debt Paydown Yield
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Ownership

LUV Insider Trading
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What is the Intrinsic Value of one LUV stock?

The intrinsic value of one LUV stock under the Base Case scenario is 37.24 USD.

Is LUV stock undervalued or overvalued?

Compared to the current market price of 34.35 USD, Southwest Airlines Co is Undervalued by 8%.

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