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 19,754 - -
Change - -21.16% -13.88% 17.12% 6.01% -7.58% - -
Enterprise Value (EV) 1 20,581 15,788 13,749 18,137 23,044 23,866 24,259 24,734
Change - -23.29% -12.91% 31.92% 27.05% 3.57% 1.65% 1.96%
P/E 26.6x 38.7x 35.7x 44.2x 52.3x 12.6x 8x 7.57x
PBR 2.44x 1.87x 1.63x 1.93x 2.8x 2.54x 2.12x 1.6x
PEG - -0.8x -5.18x -7.16x 13.25x 0x 0.1x 1.33x
Capitalization / Revenue 1.61x 0.84x 0.66x 0.73x 0.76x 0.6x 0.58x 0.56x
EV / Revenue 1.3x 0.66x 0.53x 0.66x 0.82x 0.72x 0.71x 0.7x
EV / EBITDA -2,287x 6.39x 5.68x 8.58x 11x 6.31x 5.08x 4.87x
EV / EBIT -16.1x 14.1x 15.3x 39.7x 42.8x 11x 8.27x 7.6x
EV / FCF 11.3x -118x -38.6x -11.4x -27.7x 584x 17.9x 28.7x
FCF Yield 8.83% -0.85% -2.59% -8.78% -3.61% 0.17% 5.59% 3.49%
Dividend per Share 2 - - 0.72 0.72 0.72 0.7211 0.754 0.7575
Rate of return - - 2.49% 2.14% 1.74% 1.79% 1.87% 1.88%
EPS 2 1.61 0.87 0.81 0.76 0.79 3.204 5.049 5.336
Distribution rate - - 88.9% 94.7% 91.1% 22.5% 14.9% 14.2%
Net sales 1 15,790 23,814 26,091 27,483 28,063 32,967 34,177 35,347
EBITDA 1 -9 2,471 2,422 2,114 2,099 3,784 4,774 5,084
EBIT 1 -1,281 1,120 900 457 539 2,166 2,933 3,254
Net income 1 977 539 498 465 441 1,538 2,451 2,458
Net Debt 1 -4,777 -4,204 -3,467 -2,026 1,670 4,112 4,505 4,980
Reference price 2 42.84 33.67 28.88 33.62 41.33 40.38 40.38 40.38
Nbr of stocks (in thousands) 591,920 593,752 596,115 599,737 517,155 489,208 - -
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.($)
12.6x0.72x6.31x1.79% 19.75B
202.67x0.58x7.67x-.--% 9.15B
29.51x2.46x10.62x2.19% 5.23B
25.91x1.17x6.71x1.42% 3.32B
27.91x1.07x6.19x-.--% 2.22B
-5.75x1.16x5.71x-.--% 1.37B
17.86x1.47x4.99x2.76% 1.16B
-2.93x1.09x4.8x-.--% 801M
13.86x0.72x5.15x1.5% 522M
Average 35.74x 1.16x 6.46x 1.07% 4.84B
Weighted average by Cap. 55.67x 0.99x 7.04x 1.27%

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.