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Southwest Airlines Co. LUV NYSE

NYSE • Industrials • Airlines, Airports & Air Services • US • USD

SharesGrow Score
52/100
2/7 Pass
SharesGrow Intrinsic Value
$62.96
+52.6%
Analyst Price Target
$51.27
+24.3%
SharesGrow 7-Criteria Score All 7 criteria scored · valuation-related highlighted on this page

Southwest Airlines Co. (LUV) trades at a trailing P/E of 46.8, forward P/E of 14.3. Trailing earnings yield is 2.13%, forward earnings yield 7.01%. PEG 8.84. Graham Number is $17.25.

Criteria proven by this page:

  • VALUE (67/100, Pass) — analyst target implies upside (+24.3%).
  • Forward P/E 14.3 (down from trailing 46.8) — analysts expect earnings to grow, which would improve the valuation.
  • PEG Ratio 8.84 — above 2.0 suggests expensive relative to earnings growth.
  • Trailing Earnings Yield 2.13% — below bond yields — investors are paying a premium for expected growth rather than current earnings. Forward yield improves to 7.01% as earnings recover.
  • Analyst consensus target $51.27 (+24.3% upside) — significant upside potential according to Wall Street analysts.

Overall SharesGrow Score: 52/100 with 2/7 criteria passed.

SharesGrow 7-Criteria Score
52/100
SG Score
View full scorecard →
VALUE
67/100
Price-to-Earnings & upside
Proven by this page
~
FUTURE
46/100
Analyst consensus
→ Forecast
PAST
100/100
→ Income
HEALTH
33/100
Debt-to-Equity & liquidity
→ Health
~
MOAT
47/100
→ Income
~
GROWTH
40/100
→ Income
INCOME
30/100
→ Income

Valuation Snapshot — LUV

Valuation Multiples
P/E (TTM)46.8
Forward P/E14.3
PEG Ratio8.84
Forward PEG0.05
P/B Ratio2.59
P/S Ratio0.70
EV/EBITDA10.0
Per Share Data
EPS (TTM)$0.85
Forward EPS (Est.)$2.89
Book Value / Share$15.47
Revenue / Share$54.39
FCF / Share$-1.61
Yields & Fair Value
Earnings Yield2.13%
Forward Earnings Yield7.01%
Dividend Yield1.80%
Graham Number$17.25
SharesGrow IV$62.96 (+52.6%)
Analyst Target$51.27 (+24.3%)

Historical Valuation

Year P/E (TTM) PEG Ratio P/B Ratio P/S Ratio Dividend Yield
2016 13.9 1.64 3.70 1.53 0.71%
2017 11.3 0.18 3.77 1.86 0.70%
2018 10.8 -0.42 2.70 1.21 1.25%
2019 12.6 -27.15 2.95 1.29 1.28%
2020 -8.6 0.04 2.97 2.91 0.71%
2021 26.0 -0.20 2.44 1.61 -
2022 37.0 -0.83 1.87 0.84 -
2023 37.0 -3.36 1.63 0.66 2.49%
2024 43.2 0.00 1.94 0.73 2.14%
2025 50.6 40.99 2.80 0.80 1.79%

EPS: Actual vs Estimates

P/E Ratio & Earnings Yield

Earnings Per Share (EPS) History

Year EPS (Diluted) Revenue Net Income Net Margin
2016 $3.55 $20.43B $2.24B 11%
2017 $5.78 $21.17B $3.49B 16.5%
2018 $4.29 $21.97B $2.47B 11.2%
2019 $4.27 $22.43B $2.3B 10.3%
2020 $-5.44 $9.05B $-3.07B -34%
2021 $1.60 $15.79B $977M 6.2%
2022 $0.84 $23.81B $539M 2.3%
2023 $0.76 $26.09B $465M 1.8%
2024 $0.75 $27.48B $465M 1.7%
2025 $0.79 $28.06B $441M 1.6%

Analyst Estimates

Year EPS (Avg) EPS Range Revenue (Avg) Revenue Range Analysts
2026 $3.83 $2.82 – $4.97 $32.11B $30.79B – $33.45B 13
2027 $4.96 $3.54 – $6.05 $33.56B $31.55B – $34.96B 14
2028 $5.29 $3.74 – $6.88 $34.8B $34.7B – $34.89B 6
2029 $5.32 $4.93 – $5.61 $36.18B $34.16B – $37.69B 4
2030 $7.14 $6.62 – $7.53 $39.36B $37.16B – $41B 2
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