Company Valuation: Southwest Airlines Co.

Data adjusted to current consolidation scope
Fiscal Period: December 2021 2022 2023 2024 2025 2026 2027 2028
Capitalization 1 25,358 19,992 17,216 20,163 21,374 20,304 - -
Change - -21.16% -13.88% 17.12% 6.01% -5.01% - -
Enterprise Value (EV) 1 20,581 15,788 13,749 18,137 23,044 24,628 25,011 26,733
Change - -23.29% -12.91% 31.92% 27.05% 6.88% 1.55% 6.89%
P/E ratio 26.6x 38.7x 35.7x 44.2x 52.3x 15x 9.28x 8.14x
PBR 2.44x 1.87x 1.63x 1.93x 2.8x 2.5x 2.34x 1.81x
PEG - -0.8x -5.18x -7.16x 13.25x 0x 0.2x 0.6x
Capitalization / Revenue 1.61x 0.84x 0.66x 0.73x 0.76x 0.62x 0.6x 0.58x
EV / Revenue 1.3x 0.66x 0.53x 0.66x 0.82x 0.75x 0.74x 0.77x
EV / EBITDA -2,287x 6.39x 5.68x 8.58x 11x 7.34x 5.52x 5.45x
EV / EBIT -16.1x 14.1x 15.3x 39.7x 42.8x 14.5x 9.04x 8.69x
EV / FCF 11.3x -118x -38.6x -11.4x -27.7x 1,021x 18.2x 26x
FCF Yield 8.83% -0.85% -2.59% -8.78% -3.61% 0.1% 5.5% 3.85%
Dividend per Share 2 - - 0.72 0.72 - 0.72 0.7533 0.7583
Rate of return - - 2.49% 2.14% - 1.73% 1.81% 1.83%
EPS 2 1.61 0.87 0.81 0.76 0.79 2.774 4.476 5.105
Distribution rate - - 88.9% 94.7% - 26% 16.8% 14.9%
Net sales 1 15,790 23,814 26,091 27,483 28,063 32,710 33,701 34,713
EBITDA 1 -9 2,471 2,422 2,114 2,099 3,357 4,530 4,908
EBIT 1 -1,281 1,120 900 457 539 1,700 2,768 3,077
Net income 1 977 539 498 465 441 1,346 2,128 2,345
Net Debt 1 -4,777 -4,204 -3,467 -2,026 1,670 4,325 4,707 6,429
Reference price 2 42.84 33.67 28.88 33.62 41.33 41.54 41.54 41.54
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 ratio, Detailed evolution

P/E (N) EV / Sales (N) EV / EBITDA (N) Dividend Yield (N) Capi.($)
14.97x0.75x7.34x1.73% 20.3B
-73.83x0.57x8.09x-.--% 8.93B
29.43x2.43x10.55x2.29% 4.89B
34.06x1.23x8.51x1.38% 3.46B
32.82x1.3x8.43x-.--% 2.25B
-3.86x1.25x7.13x-.--% 1.36B
20.39x1.63x5.37x2.34% 1.35B
-3.22x1.12x4.76x-.--% 844M
12.01x0.64x4.64x1.84% 418M
Average 6.97x 1.21x 7.20x 1.06% 4.87B
Weighted average by Cap. 0.11x 1.02x 7.85x 1.26%

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.