Southwest Airlines Company (LUV) fair value: what the stock is really worth
As of Nov 5, 2026: fair value (intrinsic value) of Southwest Airlines Company stock $22.81, price $44.44, that is 48.7% below the price, quality 57 out of 100. Rating: strongly overvalued. Calculated from audited financials with 16 of our 26 valuation models and 37 quality factors, updated daily.
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Southwest Airlines Company
LUV · USOur calculation puts a fair price 49% below what the stock costs today.
Risks from the AI analysis
What runs behind every stock
69 individual criteria per stock, every one traceable See the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 4, 2026.
How to read this chart
60‑month range $20.85 – $54.07 · fair‑value band $19.52 – $29.67 · the $44.44 price screens above the $22.81 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 4, 2026.
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Company profile
Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally.
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It also provides Rapid Rewards loyalty program; SWABIZ, an online booking tool; and inflight entertainment platform that includes movies-on-demand live and on-demand television, flight tracker, and additional curated content, as well as a variety of premium snacks and coffee.
In addition, the company offers ancillary services, such as in-flight purchases, baggage fees, EarlyBird Check-In, and upgraded boarding, as well as transportation of pets and unaccompanied minors.
As of December 31, 2025, the company operated a total fleet of 803 Boeing 737 aircraft; and served 117 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as ten near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos.
Southwest Airlines Co. was incorporated in 1967 and is headquartered in Dallas, Texas.
Stock analysis
Southwest Airlines Company (LUV) currently trades at $44.44, while our model-based Fair Value estimate is $22.81, 49% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $15.32 per share, and 2 of the 16 models we run sit above the $44.44 price.
Bear case: the Economic Profit group reads lowest at $3.77, and 14 of the 16 models stay below the price. Data coverage for this calculation is medium.
Scenario range: $19.52 (bear) to $29.67 (bull), the price of $44.44 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 57/100 (solid quality), in the Industrials sector.
Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Southwest Airlines Company reported revenue of $28.1B in FY2025 versus $15.8B in FY2021, a compound +15.5%/yr. Reported net income was $441M in FY2025, compounding −18.0%/yr from FY2021.
Key figures
Market cap $22.1B Large · P/E ratio 27.6 · P/S ratio 0.74 · EPS (TTM) $1.61 · Dividend yield 1.6% · Net margin 2.8% · Return on equity 11.1% · Return on assets (EBIT) 2.1%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 34 out of 100 (low confidence).
What moves the price
The share trades about 18% below its 52-week high and 45% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Industrials peers we cover trades at 18% fair-value upside, at −49%, LUV screens richer than that median.
Fair Value models
All 16 models by family
The fair value above starts from this blend and is adjusted for a cyclical trough year.
Quality Score breakdown
It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.
Insider trades
In the last 6 months, no officer or director bought or sold shares on the open market.
- SaleLisa M AthertonDirector118 shares at $37.95$4,478Apr 7, 2026
- SaleJustin JonesEVP Operations8,085 shares at $37.36$302,056Dec 5, 2025
Plus 19 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Source: SEC Form 4, as of Nov 5, 2026. All filings at the SEC ↗
Revenue & earnings trend
LUV screens overvalued: fair value 49% below the price. Compare with Delta Air Lines, Inc →
Compare Southwest Airlines Company with another stock
Price, fair value, quality and upside side by side.
Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Airlines · 52 stocks
Valuation Multiplesvs Airlines median · lower = cheaper
Strength profile in five axes (Snowflake)
VALUE 0: the price sits above our fair-value range.
Context: sector, industry, market
- Is the Industrials sector expensive or cheap?
- P/E, EV/EBITDA and margins by industry (reference tables)
- Quality Score by industry
- Return on equity by industry
- PEG screener for stocks with fair value
- Undervalued stocks: Industrials
- Undervalued stocks: US Stocks
- Valuation of the USA market
Values & ESG
Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.
Similar stocks
10 more Airlines stocks, each showing price versus our Fair Value estimate.
| Stock | Price | Fair Value | vs Fair Value | Compare |
|---|---|---|---|---|
| InterGlobe Aviation Limited INDIGO | ₹5,420 | ₹11,831 | +118% | vs LUV |
| Ryanair Holdings RYA | €24.98 | €36.70 | +47% | vs LUV |
| United Airlines Holdings UAL | $110.49 | $148.87 | +35% | vs LUV |
| Deutsche Lufthansa AG LHA | €8.19 | €10.00 | +22% | vs LUV |
| Delta Air Lines, Inc DAL | $85.36 | $100.66 | +18% | vs LUV |
| Singapore Airlines Limited C6L | 7.03 SGD | 7.88 SGD | +12% | vs LUV |
| Qantas Airways Limited QAN | A$9.45 | A$9.48 | +0% | vs LUV |
| LATAM Airlines Group LTM | $47.07 | $37.38 | −21% | vs LUV |
| Cathay Pacific Airways Limited 0293 | HK$15.05 | HK$11.32 | −25% | vs LUV |
| China Southern Airlines Company 600029 | ¥5.25 | ¥3.44 | −34% | vs LUV |
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Key figures of Southwest Airlines Company
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