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 19,451 - -
Change - -21.16% -13.88% 17.12% 6.01% -9% - -
Enterprise Value (EV) 1 20,581 15,788 13,749 18,137 23,044 23,563 23,956 24,431
Change - -23.29% -12.91% 31.92% 27.05% 2.25% 1.67% 1.98%
P/E 26.6x 38.7x 35.7x 44.2x 52.3x 12.6x 7.95x 7.45x
PBR 2.44x 1.87x 1.63x 1.93x 2.8x 2.5x 2.09x 1.58x
PEG - -0.8x -5.18x -7.16x 13.25x 0x 0.1x 1.12x
Capitalization / Revenue 1.61x 0.84x 0.66x 0.73x 0.76x 0.59x 0.57x 0.55x
EV / Revenue 1.3x 0.66x 0.53x 0.66x 0.82x 0.71x 0.7x 0.69x
EV / EBITDA -2,287x 6.39x 5.68x 8.58x 11x 6.25x 5.06x 4.88x
EV / EBIT -16.1x 14.1x 15.3x 39.7x 42.8x 11x 8.21x 7.51x
EV / FCF 11.3x -118x -38.6x -11.4x -27.7x 577x 17.7x 28.3x
FCF Yield 8.83% -0.85% -2.59% -8.78% -3.61% 0.17% 5.66% 3.53%
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% 1.81% 1.9% 1.91%
EPS 2 1.61 0.87 0.81 0.76 0.79 3.148 5.004 5.336
Distribution rate - - 88.9% 94.7% 91.1% 22.9% 15.1% 14.2%
Net sales 1 15,790 23,814 26,091 27,483 28,063 32,973 34,196 35,373
EBITDA 1 -9 2,471 2,422 2,114 2,099 3,769 4,733 5,005
EBIT 1 -1,281 1,120 900 457 539 2,146 2,917 3,254
Net income 1 977 539 498 465 441 1,499 2,420 2,457
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 39.76 39.76 39.76
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.($)
12.63x0.71x6.25x1.81% 19.45B
-197.95x0.58x7.88x-.--% 9.08B
28.36x2.39x10.31x2.28% 4.99B
26.26x1.18x6.78x1.4% 3.37B
27.38x1.05x6.2x-.--% 2.18B
-5.17x1.15x5.81x-.--% 1.36B
16.72x1.54x5.31x2.68% 1.19B
-2.92x1.12x4.94x-.--% 796M
Average -11.84x 1.22x 6.69x 1.02% 5.3B
Weighted average by Cap. -29.51x 0.98x 7.05x 1.29%

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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  5. Valuation Southwest Airlines Co.