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 23,671 - -
Change - -21.16% -13.88% 17.12% 6.01% 10.75% - -
Enterprise Value (EV) 1 20,581 15,788 13,749 18,137 23,044 27,929 28,528 31,636
Change - -23.29% -12.91% 31.92% 27.05% 21.2% 2.14% 10.89%
P/E 26.6x 38.7x 35.7x 44.2x 52.3x 15.3x 9.8x 8.98x
PBR 2.44x 1.87x 1.63x 1.93x 2.8x 2.88x 2.58x 2.01x
PEG - -0.8x -5.18x -7.16x 13.25x 0x 0.2x 0.98x
Capitalization / Revenue 1.61x 0.84x 0.66x 0.73x 0.76x 0.72x 0.7x 0.68x
EV / Revenue 1.3x 0.66x 0.53x 0.66x 0.82x 0.85x 0.84x 0.91x
EV / EBITDA -2,287x 6.39x 5.68x 8.58x 11x 7.71x 5.95x 6.18x
EV / EBIT -16.1x 14.1x 15.3x 39.7x 42.8x 14x 9.48x 9.74x
EV / FCF 11.3x -118x -38.6x -11.4x -27.7x 119x 22.2x 28x
FCF Yield 8.83% -0.85% -2.59% -8.78% -3.61% 0.84% 4.5% 3.57%
Dividend per Share 2 - - 0.72 0.72 0.72 0.7244 0.757 0.7671
Rate of return - - 2.49% 2.14% 1.74% 1.5% 1.56% 1.58%
EPS 2 1.61 0.87 0.81 0.76 0.79 3.174 4.941 5.392
Distribution rate - - 88.9% 94.7% 91.1% 22.8% 15.3% 14.2%
Net sales 1 15,790 23,814 26,091 27,483 28,063 32,719 33,789 34,792
EBITDA 1 -9 2,471 2,422 2,114 2,099 3,622 4,793 5,122
EBIT 1 -1,281 1,120 900 457 539 1,994 3,010 3,248
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 4,258 4,857 7,964
Reference price 2 42.84 33.67 28.88 33.62 41.33 48.43 48.43 48.43
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 (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
15.26x0.85x7.71x1.5% 23.67B
25x0.61x7.06x-.--% 11.21B
32.12x2.6x11.26x2.09% 5.26B
32.13x1.17x8.13x1.46% 3.26B
16.5x1.23x7.16x-.--% 2.96B
-6.7x1.31x7.03x-.--% 1.59B
18.76x1.52x5.14x2.62% 1.2B
-3.81x1.15x4.81x-.--% 959M
12.07x0.65x4.67x1.83% 417M
Average 15.70x 1.23x 7.00x 1.06% 5.62B
Weighted average by Cap. 19.34x 1.06x 7.77x 1.09%

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.