Company Valuation: Southwest Airlines Co.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Market Cap 1 25,358 19,992 17,216 20,163 21,374 21,853 - -
Change - -21.16% -13.88% 17.12% 6.01% 2.24% - -
Enterprise Value (EV) 1 20,581 15,788 13,749 18,137 23,044 26,050 26,664 29,818
Change - -23.29% -12.91% 31.92% 27.05% 13.04% 2.36% 11.83%
P/E 26.6x 38.7x 35.7x 44.2x 52.3x 13.5x 9.46x 9.44x
PBR 2.44x 1.87x 1.63x 1.93x 2.8x 2.59x 2.38x 1.87x
PEG - -0.8x -5.18x -7.16x 13.25x 0x 0.2x 37.37x
Capitalization / Revenue 1.61x 0.84x 0.66x 0.73x 0.76x 0.67x 0.65x 0.63x
EV / Revenue 1.3x 0.66x 0.53x 0.66x 0.82x 0.79x 0.79x 0.86x
EV / EBITDA -2,287x 6.39x 5.68x 8.58x 11x 6.93x 5.55x 5.83x
EV / EBIT -16.1x 14.1x 15.3x 39.7x 42.8x 12.4x 8.82x 9.19x
EV / FCF 11.3x -118x -38.6x -11.4x -27.7x 83x 26.8x 25.7x
FCF Yield 8.83% -0.85% -2.59% -8.78% -3.61% 1.21% 3.72% 3.89%
Dividend per Share 2 - - 0.72 0.72 0.72 0.76 0.757 0.7686
Rate of return - - 2.49% 2.14% 1.74% 1.7% 1.69% 1.72%
EPS 2 1.61 0.87 0.81 0.76 0.79 3.317 4.726 4.738
Distribution rate - - 88.9% 94.7% 91.1% 22.9% 16% 16.2%
Net sales 1 15,790 23,814 26,091 27,483 28,063 32,856 33,820 34,825
EBITDA 1 -9 2,471 2,422 2,114 2,099 3,757 4,804 5,113
EBIT 1 -1,281 1,120 900 457 539 2,104 3,024 3,245
Net income 1 977 539 498 465 441 1,578 2,364 2,552
Net Debt 1 -4,777 -4,204 -3,467 -2,026 1,670 4,197 4,811 7,964
Reference price 2 42.84 33.67 28.88 33.62 41.33 44.71 44.71 44.71
Nbr of stocks (in thousands) 591,920 593,752 596,115 599,737 517,155 488,774 - -
Announcement Date 1/27/22 1/26/23 1/25/24 1/30/25 1/28/26 - - -
1USD in Million2USD
Estimates

P/E, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
13.48x0.79x6.93x1.7% 21.85B
26.93x0.56x6.46x-.--% 8.97B
30.73x2.53x10.97x2.19% 5.05B
33.34x1.21x8.37x1.41% 3.39B
14.04x1.12x6.45x-.--% 2.52B
-5.31x1.24x6.31x-.--% 1.26B
18.18x1.49x5.04x2.71% 1.17B
-3.21x1.12x5x-.--% 864M
12.04x0.65x4.67x1.84% 418M
Average 15.58x 1.19x 6.69x 1.09% 5.06B
Weighted average by Cap. 18.83x 1.02x 7.24x 1.25%

Y-o-Y evolution of P/E

Historical PBR trend

Evolution Enterprise Value / Sales

Change in Enterprise Value/EBITDA

Year-on-year evolution of the Yield

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  4. Valuation Southwest Airlines Co.