As of 2025-07-05, the Intrinsic Value of Southwest Airlines Co (LUV) is 17.54 USD. This LUV valuation is based on the model Discounted Cash Flows (Growth Exit 5Y). With the current market price of 34.08 USD, the upside of Southwest Airlines Co is -48.50%.
The range of the Intrinsic Value is 13.26 - 29.13 USD
Based on its market price of 34.08 USD and our intrinsic valuation, Southwest Airlines Co (LUV) is overvalued by 48.50%.
| Range | Selected | Upside | |
| a | |||
| DCF (Growth 5y) | 13.26 - 29.13 | 17.54 | -48.5% |
| DCF (Growth 10y) | 17.09 - 37.61 | 22.66 | -33.5% |
| DCF (EBITDA 5y) | 30.55 - 38.71 | 34.17 | 0.3% |
| DCF (EBITDA 10y) | 29.85 - 40.42 | 34.48 | 1.2% |
| Fair Value | 4.79 - 4.79 | 4.79 | -85.94% |
| P/E | 8.11 - 11.09 | 9.84 | -71.1% |
| EV/EBITDA | 23.14 - 34.65 | 28.36 | -16.8% |
| EPV | 65.47 - 86.27 | 75.87 | 122.6% |
| DDM - Stable | 8.22 - 22.00 | 15.11 | -55.7% |
| DDM - Multi | 17.02 - 33.78 | 22.48 | -34.1% |
| Market Cap (mil) | 19,421.17 |
| Beta | 1.12 |
| Outstanding shares (mil) | 569.87 |
| Enterprise Value (mil) | 17,981.17 |
| Market risk premium | 4.60% |
| Cost of Equity | 9.54% |
| Cost of Debt | 5.74% |
| WACC | 8.18% |