What sector does Southwest Airlines belong to?

Southwest Airlines operates in the Industrials sector, specifically the Passenger Airlines industry, and is listed on the US markets.

What is the current share price of LUV?

As of the latest available quote, LUV traded at $39.24. This price is delayed and cached for about 15 minutes.

What is the P/E ratio of LUV?

Southwest Airlines has a price-to-earnings (P/E) ratio of about 24.53. The P/E ratio compares the share price to earnings per share and is most useful when compared with sector peers and the company's own history.

What is the market capitalisation of LUV?

The market capitalisation of Southwest Airlines is approximately $21.90B.

Is Southwest Airlines profitable?

For its latest reported financial year, Southwest Airlines recorded a net profit margin of about 1.57%.

Does LUV pay a dividend?

Southwest Airlines currently has a dividend yield of about 1.86%.

What is the return on equity (ROE) of LUV?

Southwest Airlines has a return on equity (ROE) of about 6.23%. ROE measures how much profit a company generates relative to shareholders' equity.

What is the 52-week high and low of LUV?

Over the past 52 weeks, LUV has traded between a low of $29.26 and a high of $55.11.

Southwest Airlines

LUV US Industrials Passenger Airlines

S&P 500

$39.24

+1.42%

Delayed · cached 15 min

Fair value analysis

LUV

Southwest Airlines

$39.24

Close used for this calculation

$17.90Fair value

Financial DNA Score

Profitability · Returns · Balance Sheet · Efficiency · Growth

24/100

Profitability8/25

Returns5/25

Balance Sheet2/25

Efficiency9/25

Growth6/25

Weak

Quality radar

Consensus fair value

$17.90

Above FV

▼ -54.4% against the close used

Model range $5.56 – $32.57

The lowest and highest of the models that produced a value. This is the spread of the methods, not a price target.

Price target range & 52-week position

Bear$5.56Fair value$17.90Bull$32.57

FairClose

52-week traded range

52W low $29.6752W high $54.80

The 52-week range is measured from the stored price history, not estimated.

Valuation summary

Trading above the consensus fair value

Southwest Airlines closed at $39.24, 119.2% above the consensus fair value of $17.90 drawn from 9 valuation models.

Financial DNA score 24/100 — Weak. P/E of 49.7x against the 20x sector multiple the P/E model uses.

Quantitative summary only — not investment advice.

All valuation models

DCF Valuation

$14.81

-62.3%

Σ[CF×(1+g)^n/(1.10)^n] + TV/(1.10)^10

g=8%, r=10%, tg=3%, n=10yr

Graham Number

$15.98

-59.3%

√(22.5 × EPS × BVPS)

EPS=0.79, BVPS=14.37 · outside Graham range (P/E 49.7, P/B 2.7) — asset-light, treat as a rough floor

P/E Fair Value

$15.80

-59.7%

EPS × 20x (sector P/E)

EPS=0.79, Sector P/E=20x

Peter Lynch (PEG)

$5.56

-85.8%

EPS × Growth% (PEG = 1 is fair)

EPS=0.79, g=7%

EV/EBITDA

$32.57

-17.0%

(EBITDA × 10x − Net Debt) ÷ Shares

EBITDA=1.99B

Dividend Discount (DDM)

$9.16

-76.7%

D1 ÷ (r − g) where D1 = D0×(1+g)

D0=0.72, r=10%, g=2%

Book Value (P/B)

$6.63

-83.1%

BVPS × (ROE−g)÷(r−g) [Justified P/B — RIM-based]

BVPS=14.37, ROE=6.2%, g=3%, r=10%

Reverse DCF

$39.24

+0.0%

Solve for g: Price = Σ[EPS×(1+g)^n/(1.10)^n] + TV

Implied: 19.4% | Historical: -7%

Margin of Safety

$11.65

-70.3%

Avg(DCF, Graham, P/E) × 75% (25% safety buffer)

Avg fair value=15.53, MoS=25%

Computed on September 12, 2026 from the most recent annual report on file and that day's closing price. Where a company has seen its earnings move sharply since its last annual report, this figure will lag the market.

Educational data only. Not a recommendation to buy, sell or hold any security.

Fair value analysis

Consensus fair value

Price target range & 52-week position

Valuation summary

All valuation models

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