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 19,197 - -
Change - -21.16% -13.88% 17.12% 6.01% -10.19% - -
Enterprise Value (EV) 1 20,581 15,788 13,749 18,137 23,044 23,310 23,727 24,281
Change - -23.29% -12.91% 31.92% 27.05% 1.15% 1.79% 2.34%
P/E 26.6x 38.7x 35.7x 44.2x 52.3x 12.8x 8.05x 7.45x
PBR 2.44x 1.87x 1.63x 1.93x 2.8x 2.49x 2.09x 1.61x
PEG - -0.8x -5.18x -7.16x 13.25x 0x 0.1x 0.93x
Capitalization / Revenue 1.61x 0.84x 0.66x 0.73x 0.76x 0.58x 0.56x 0.54x
EV / Revenue 1.3x 0.66x 0.53x 0.66x 0.82x 0.71x 0.69x 0.69x
EV / EBITDA -2,287x 6.39x 5.68x 8.58x 11x 6.28x 5.05x 4.82x
EV / EBIT -16.1x 14.1x 15.3x 39.7x 42.8x 11.1x 8.32x 7.56x
EV / FCF 11.3x -118x -38.6x -11.4x -27.7x 423x 17.5x 27.9x
FCF Yield 8.83% -0.85% -2.59% -8.78% -3.61% 0.24% 5.72% 3.58%
Dividend per Share 2 - - 0.72 0.72 0.72 0.7214 0.754 0.7575
Rate of return - - 2.49% 2.14% 1.74% 1.84% 1.92% 1.93%
EPS 2 1.61 0.87 0.81 0.76 0.79 3.064 4.877 5.27
Distribution rate - - 88.9% 94.7% 91.1% 23.5% 15.5% 14.4%
Net sales 1 15,790 23,814 26,091 27,483 28,063 32,978 34,224 35,345
EBITDA 1 -9 2,471 2,422 2,114 2,099 3,712 4,696 5,041
EBIT 1 -1,281 1,120 900 457 539 2,094 2,853 3,214
Net income 1 977 539 498 465 441 1,473 2,386 2,436
Net Debt 1 -4,777 -4,204 -3,467 -2,026 1,670 4,113 4,531 5,085
Reference price 2 42.84 33.67 28.88 33.62 41.33 39.24 39.24 39.24
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 (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
12.81x0.71x6.28x1.84% 19.2B
-38.92x0.59x8.15x-.--% 8.61B
26.98x2.3x9.94x2.4% 4.75B
34.12x1.14x7.61x1.16% 3.18B
28.28x1.04x6.17x-.--% 2.13B
-4.92x1.14x5.74x-.--% 1.29B
26.3x1.58x5.7x2.68% 1.19B
-3.03x1.1x4.86x-.--% 756M
13.3x0.68x4.87x1.57% 480M
Average 10.55x 1.14x 6.59x 1.07% 4.62B
Weighted average by Cap. 5.68x 0.96x 7.11x 1.31%

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.
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