LUV

$52.51

Public overview and default valuation.

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Valuation Details
Default assumptions: 10Y forecast, 9% market return, 2.5% terminal growth, 3.18% trendline growth.
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$152.54

With 20% Margin of Safety (MoS):

$122.03
▲ 132.40% upside
Capital Efficiency
Average Quarterly ROIC
1.32%
Cost of Capital (estimated)11%
Value StatusUnderperforming Capital

The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.

Complete historical ROIC is available with
.
Fundamental Score
73
BullishWeighted across 6 signals
DCF Discount
132.4% discount to price
100
FCF Yield
16.6% trailing FCF yield
100
ROIC vs WACC
ROIC 1.3% vs WACC 11.0% (0.1x)
6
Net Debt / FCF
0.6x net debt to FCF
88
Buybacks
Share count shrinking
80
FCF CAGR (5Y)
452.1% 5Y FCF CAGR (adjusted)
100
Strengths: DCF Discount, FCF Yield. Concerns: ROIC vs WACC.
Narrative Score
77
Improving
Weighted across 6 recent drivers · Last 30 daysVs 6-Month Baseline: High (86th pct)
Trend: StableConfidence: 91%Updated: 3h ago
Sources: 134 (News 113 · Analyst 21)
Drivers
91 news sentiment+3.0
12 regulatory scrutiny-0.7
2 earnings beat+0.2
3 analyst upgrades+0.2
5 upgrade headlines+0.1
Restructuring-0.1
Other Metrics
P/E61.4
Profit Margin1.6%
Owner Earnings$4.68b
One Dollar Premise84.00%
Debt/Equity2.60
Current Ratio0.60
PEG2.355
Free Cash Flow (in millions)
20062007200820092010201120122013201420152016201720182019202020212022202320242025
$2,805$4,176-$598$1,570$2,054$2,353$3,412$3,937$4,730$5,381$6,440$6,178$6,869$5,014-$612$2,833$7,736$6,717$2,542$4,516
How Intrinziq Estimates Fair Value

Intrinziq estimates Southwest Airlines Co.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.

Southwest Airlines Co.Industrials

Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2021, the company operated a total fleet of 728 Boeing 737 aircrafts; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also provides inflight entertainment and connectivity services on Wi-Fi enabled aircrafts; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers' travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. The company was incorporated in 1967 and is headquartered in Dallas, Texas.

Last updated: Feb 06, 2026
Data sources: Financial Modeling Prep
This valuation is based on assumptions and publicly available data. It is not financial advice or a recommendation to buy or sell any security. Always do your own research before making investment decisions.