EN DE
Check 35,000+ stocks against 26 valuation models and 37 quality factors
Data-driven stock valuation

Southwest Airlines Co. (0L8F) fair value: what the stock is really worth

As of Oct 2, 2026: fair value of Southwest Airlines Co. $12.83, price $42.47, upside -69.8%, quality 54 out of 100. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.

  1. Fair value above price? No
  2. Good quality? Yes
  3. Add to watchlist

Industrials · GB · Home US

SA Some data Sep 24, 2026

Southwest Airlines Co.

0L8F · LSE

Stretched ValuationStrong overvaluation with only moderate quality.

!Fair value $12.83 · Strongly overvalued (−69.8%)
!Quality 54/100
!Expensive Growth (revenue 5y +25.4 %/yr)
!Thin margins · 2.8% net margin (TTM)
!Moderate debt · negative free cash flow
!0.8% dividend yield · Token dividend
!Mixed vs. peers (4/10)
!Narrow moat 30/100
!Evidence only medium, so the estimate is less certain
!Weak on dividend: 17 out of 100
Watch Southwest Airlines Co. for free, get notified when fair value or trend changes. Plus fair value for all 35,000+ stocks, 14 days of Pro free, no card. Watch for free Pro now: $1 first month

What runs behind every stock

26 valuation models 8 families, DCF to NCAV 37 quality factors margins, balance sheet, cashflow, debt 6 AI factors moat, what no ratio measures 2,000+ data points verified, per stock, median

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$56.65 $20.93 Fair Value $12.83 May 2021 Oct 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 24, 2026.

How to read this chart

60‑month range $20.93 – $56.65 · fair‑value band $10.00 – $16.67 · the $42.47 price screens above the $12.83 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 24, 2026.

Follow Southwest Airlines Co. in your weekly email

Every Wednesday you see whether Southwest Airlines Co. is on track or worth a review, plus price against fair value. Free, up to 3 stocks.

We send you a confirmation link. Unsubscribe with one click.

Which stocks are undervalued right now? Check free Discover now →

Company profile

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally.

Show more

Southwest Airlines Co. operates as a passenger airline company that provides scheduled air transportation services in the United States and internationally. 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 Co. (0L8F) currently trades at $42.47, while our model-based Fair Value estimate is $12.83, 69.8% below the price, so the stock looks overvalued today.

Show more

Valuation

Bull case: the Multiples group reads highest at a median of $13.33 per share, and 0 of the 11 models we run sit above the $42.47 price.

Bear case: the Earnings-Based group reads lowest at $7.03, and 11 of the 11 models stay below the price. Evidence for this calculation is medium.

Scenario range: $10.00 (bear) to $16.67 (bull), the price of $42.47 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 54/100 (solid quality), in the Industrials sector.

Expensive Growth: The company is growing, but growth may require heavy reinvestment or weak cash conversion.

Southwest Airlines Co. 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 $23.7B · P/E ratio 0.5 · EPS (TTM) $0.9700 · Dividend yield 0.8% · Net margin 1.6% · Return on equity 11.1% · Return on assets (EBIT) 0.2% · Operating margin 3.4%.

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 50 out of 100 (low confidence).

What moves the price

The share trades about 21% below its 52-week high and 46% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Industrials peers we cover trades at 34% fair-value upside, at −70%, 0L8F screens richer than that median.

Fair Value models

Bear $10.00 Fair Value $12.83 Bull $16.67
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above is their evidence-weighted blend, not the output of a single model. Based on fiscal year 2025 figures (about 9 months old). Earnings retained since then ($0.4613 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Evidence ⓘEvidence = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Highest evidence
Residual Income $10.88 $11.04 $11.78 76
Growth-Adj P/E $8.98 $12.83 $16.68 67
EV/EBITDA $21.95 $33.44 $44.93 66
All 12 models by family
Earnings-Based
Graham-Dodd $5.33 $20.26 $27.43 64
Lynch FV $4.92 $7.03 $9.14 61
PEG = 1.0 $4.92 $7.03 $9.14 57
Multiples
P/E Multiple $12.35 $16.47 $20.59 63
P/S Multiple $10.00 $13.33 $16.67 58
P/B Multiple $10.00 $13.33 $16.67 55
EV/EBIT n/a $0.4100 >$1.64 61
EV/EBITDA $21.95 $33.44 $44.93 66
EV/Revenue n/a n/a $0.3400 50
Asset-Based
NCAV (Graham) $7.10 $9.51 $14.19 54
Economic Profit
Residual Income $10.88 $11.04 $11.78 76
Growth Earnings
Growth-Adj P/E $8.98 $12.83 $16.68 67

Open the full fair value analysis →

Notify me when 0L8F reaches fair value

Put 0L8F on your watchlist. We get in touch as soon as price and fair value meet or the trend turns.

Set up alert →

Quality Score breakdown

Overall quality 54/100

Of which business quality 51 · Market factors (momentum, volatility) 52

Profitability 35
Margins and returns on capital today
Quality Growth 54
Are margins and returns improving?
Cashflow 35
Earnings quality: real cash, not paper profit
Fin. Strength 30
Balance sheet, leverage, solvency risk
Investment 86
Disciplined investing over empire-building
Low Volatility 44
Calm price path (market factor)
Momentum 50
Price trend over the last 3–12 months (market factor)
52W Momentum 64
Distance to the 52-week high (market factor)
Net Issuance 100
Share count: buybacks or dilution?

Open the full quality analysis →

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 58/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Revenue growth 1 year
+2.1%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+5.6%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+25.4%
Start year 2020 (pandemic). Over 10 years: +3.6% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+9.7%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−22.3%
Earnings growth per share plus dividend.
Earnings per share, growth per year−23.1%
Dividend (yield on the price)0.8%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−23.1% vs −13.2%, slowing
Profit margin 2020 to 2025 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−52% → 2%
Start year 2020 (pandemic)

0L8F screens overvalued: fair value 70% below the price. Compare with Delta Air Lines, Inc →

Compare Southwest Airlines Co. with another stock

Price, fair value, quality and upside side by side.

Free, no sign-up

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 · 53 stocks

Beats the industry median on 4/10 measures
A mixed picture versus its industry peers.
Valuation
Quality Score 54 · Top 25%
Fair Value upside −69.8% · Bottom 25%
Profitability
Return on equity (TTM) 11.1% · Below median
Return on assets 2.3% · Below median
Net margin (TTM) 2.8% · Below median
Operating margin (TTM) 3.4% · Above median
Growth and dividend
Revenue growth 16.4% · Above median
Dividend yield (TTM) 0.8% · Bottom 25%
Balance sheet
Debt / equity 1.29× · Above median

Valuation Multiplesvs Airlines median · lower = cheaper

P/E (TTM) 0.5× · Cheapest 25%

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)0 · sector 50
FUTURE (revenue growth)82 · sector 73
PAST (return on equity)44 · sector 47
HEALTH (low debt)36 · sector 67
DIVIDEND (yield)17 · sector 49

VALUE 0: the price sits above our fair-value range.

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Airlines stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value
Delta Air Lines, Inc DAL $84.13 $121.83 +45%
United Airlines Holdings UAL $111.51 $149.61 +34%
Ryanair Holdings RYA €23.79 €48.63 +104%
InterGlobe Aviation Limited INDIGO ₹4,940 ₹3,073 −38%
Singapore Airlines Limited C6L 6.65 SGD 7.88 SGD +18%
LATAM Airlines Group LTM $52.45 $106.79 +104%
China Southern Airlines Company 600029 ¥4.86 ¥2.78 −43%
Cathay Pacific Airways Limited 0293 HK$14.37 HK$31.02 +116%
Deutsche Lufthansa AG LHA €7.60 €9.90 +30%
Qantas Airways Limited QAN A$8.93 A$9.69 +9%

Explore undervalued stocks

More undervalued Industrials stocks →

All undervalued stocks TechnologyFinancial ServicesHealthcareConsumer CyclicalConsumer DefensiveCommunication ServicesIndustrialsEnergyBasic MaterialsReal EstateUtilities Deeply Undervalued StocksUndervalued High-Quality StocksUndervalued Blue-Chip StocksUndervalued Small-Cap StocksUndervalued Dividend Stocks

Try a ready-made strategy

Pick a strategy and jump into the live analysis with that exact screen applied.

🥇 Backtested Best 🏆 Big Names ⭐ Top Rated 💎 Quality on Sale 🚀 Profitable Growth 🧊 Quality Compounders 💵 Dividend Stars 📈 Strong Momentum 📉 Fallen Angels ⚖️ Deeply Undervalued 🔍 Small-Cap Gems 🏰 Moat at a Fair Price 💼 Insider Buying 🎩 Buffett-Style Quality 📚 Peter Lynch GARP 🧮 Greenblatt Magic Formula 🛡️ Graham Defensive

Discover tools

Stock screenerFilter by region, size and sector Compare toolTwo stocks side by side Extrinsic Value Calculator…Calculator with industry benchmark Peter Lynch Fair Value Formula &…Calculator with industry benchmark
Run the numbers yourself: free valuation calculators
DCF CalculatorGraham NumberPeter Lynch FormulaDDM CalculatorFama-French ModelIntrinsic Value
For bloggers & editors: embed code + live data

For bloggers, editors and developers: paste this into your site or blog (a “Custom HTML” block in WordPress), it shows the current fair value and links back here. Free, plain HTML, and welcome. Full data streams (CSV/JSON) at /developers.

Southwest Airlines Co. · Fair Value
$12.83 −70%Fair Value
Calculator →

Cite: Fair Value Calculator (2026). "Southwest Airlines Co. Fair Value". https://www.fairvalue-calculator.com/stock/0L8F

Frequently asked questions

Is Southwest Airlines Co. (0L8F) overvalued or undervalued?
As of Sep 24, 2026, our model estimates a fair value of $12.83 versus a price of $42.47, about −70% upside (overvalued).
What is the fair value of 0L8F?
Our model-based fair value for Southwest Airlines Co. is $12.83 (as of Sep 24, 2026), built from audited fundamentals. The current price: $42.47.
What is the quality score of 0L8F?
Southwest Airlines Co. has a Quality Score of 54/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Southwest Airlines Co. (0L8F)?
Our model-based price target is the fair value of $12.83 (as of Sep 24, 2026) from 12 valuation models. Cautious scenario $10.00, optimistic scenario $16.67. It is a calculation from audited fundamentals, not an analyst target.
What is the Southwest Airlines Co. stock forecast for 2026?
Our models put fair value at $12.83, about −70% upside versus a price of $42.47 (overvalued). Cautious scenario $10.00, optimistic scenario $16.67. The calculation is refreshed regularly with new filings.
What is the revenue of Southwest Airlines Co. (0L8F)?
Southwest Airlines Co. reported trailing-twelve-month revenue of about $30.1B (latest available figure, as of Sep 24, 2026).
Does Southwest Airlines Co. pay a dividend?
Southwest Airlines Co. currently shows a dividend yield of about 0.85% relative to its recent price (as of Sep 24, 2026).
What is the intrinsic value of Southwest Airlines Co. (0L8F)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Southwest Airlines Co. it is $12.83 per share (as of Sep 24, 2026), against a price of $42.47. It is the blended result of 12 valuation models (cash flow, earnings, asset, dividend).
Is Southwest Airlines Co. stock overvalued or undervalued in 2026?
As of Sep 24, 2026, 0L8F trades above its calculated fair value: price $42.47, fair value $12.83, a gap of about −70% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of 0L8F?
No. The price is what the market pays today ($42.47); the fair value is what the company's own numbers justify ($12.83). For Southwest Airlines Co. the two are $29.64 per share apart. That gap is exactly why we show both numbers side by side.
How much is Southwest Airlines Co. worth?
The market values Southwest Airlines Co. at about $23.7B (market capitalisation, as of Sep 24, 2026). Per share that is $42.47; our models calculate a fair value of $12.83 per share.
What do the bullish and bearish scenarios say about 0L8F?
Our models span a range for Southwest Airlines Co.: cautious scenario $10.00, base $12.83, optimistic $16.67 per share (as of Sep 24, 2026, price $42.47). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of 0L8F?
Southwest Airlines Co. trades at a price-to-earnings ratio of 0.5 (as of Sep 24, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $12.83 is built from several models across several years.
How solid is the balance sheet of Southwest Airlines Co. (0L8F)?
Balance-sheet figures for Southwest Airlines Co. (as of Sep 24, 2026): return on equity 11.1%, debt of 1.29 per unit of equity. They feed the Quality Score of 54/100, which measures business quality independently of the share price.
How far is 0L8F from its 52-week high?
Southwest Airlines Co. trades at $42.47, about 21% below its 52-week high of $54.06 and 46% above the low of $29.04 (as of Oct 2, 2026). Distance from the high says nothing about value: that is what the fair value of $12.83 is for.
Which stocks are comparable to Southwest Airlines Co.?
From the same area (Industrials) we also value Delta Air Lines, Inc, United Airlines Holdings, Ryanair Holdings, InterGlobe Aviation Limited, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Southwest Airlines Co. stock attractive at the current price?
The data as of Sep 24, 2026: price $42.47, calculated fair value $12.83 (−70%), Quality Score 54/100, from 12 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of 0L8F calculated?
We run Southwest Airlines Co. through 12 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of $12.83, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 14.5 % above its aggregate fair value. Southwest Airlines Co. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Southwest Airlines Co. (0L8F)?
The closing price on Oct 2, 2026 was $42.47. Our model-based fair value is $12.83, about −70% upside (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Southwest Airlines Co. right now?
The price sits above even our optimistic bull case ($16.67). The favourable scenario is already priced in. Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.
Where does the earnings growth of Southwest Airlines Co. (0L8F) come from?
Earnings per share at Southwest Airlines Co. grew −13.4 % a year from 2014 to 2025. Broken into its drivers: revenue per share +4.7 %, EBIT margin −23.7 %, tax rate +2.2 %, residual (interest, one-offs) +6.1 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of Southwest Airlines Co.

How large is the market capitalisation of Southwest Airlines Co. (0L8F)?
The market capitalisation of Southwest Airlines Co. is $23.7B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What are the earnings per share of Southwest Airlines Co. (0L8F)?
Earnings per share at Southwest Airlines Co. are $0.9700 (price ÷ EPS = P/E 0.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Southwest Airlines Co. (0L8F)?
The dividend yield of Southwest Airlines Co. is 0.8% (payout 37.1%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Southwest Airlines Co. (0L8F)?
The net margin of Southwest Airlines Co. is 1.6% (fiscal year 2025). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Southwest Airlines Co. (0L8F)?
The return on equity (ROE) of Southwest Airlines Co. is 11.1% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Southwest Airlines Co. (0L8F)?
On an EBIT basis the return on assets of Southwest Airlines Co. is 0.2% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Southwest Airlines Co. (0L8F)?
The operating margin of Southwest Airlines Co. is 3.4% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Southwest Airlines Co. (0L8F)?
Revenue at Southwest Airlines Co. is growing +16.4% versus a year earlier (3y avg +5.6%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Southwest Airlines Co. (0L8F)?
Earnings per share at Southwest Airlines Co. are growing +20.5% versus a year earlier. How much earnings per share grew versus a year earlier.
How much free cash flow does Southwest Airlines Co. (0L8F) generate?
The free cash flow of Southwest Airlines Co. is −$831M (fiscal year 2025). The cash truly left after running and investing in the business, this is what pays dividends and buybacks.
How much net debt does Southwest Airlines Co. (0L8F) carry?
The net debt of Southwest Airlines Co. is $3.5B (fiscal year 2025). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
Free · no account needed

Watch Southwest Airlines Co. in the live analysis

One click puts Southwest Airlines Co. on your watchlist: fair value and trend at a glance, plus comparison, the diversification check and the 35,000+ stock screener. You can also try 14 days of Pro there, no card.

Watch for free →

Zero risk: nothing is ever charged. Your watchlist is yours, with or without an account.