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 20,969 - -
Change - -21.16% -13.88% 17.12% 6.01% -1.9% - -
Enterprise Value (EV) 1 20,581 15,788 13,749 18,137 23,044 25,482 24,836 23,838
Change - -23.29% -12.91% 31.92% 27.05% 10.58% -2.54% -4.02%
P/E ratio 26.6x 38.7x 35.7x 44.2x 52.3x 12.6x 10x 8.84x
PBR 2.44x 1.87x 1.63x 1.93x 2.8x 2.68x 2.33x 1.96x
PEG - -0.8x -5.18x -7.16x 13.25x 0x 0.4x 0.7x
Capitalization / Revenue 1.61x 0.84x 0.66x 0.73x 0.76x 0.65x 0.63x 0.61x
EV / Revenue 1.3x 0.66x 0.53x 0.66x 0.82x 0.79x 0.75x 0.69x
EV / EBITDA -2,287x 6.39x 5.68x 8.58x 11x 6.97x 5.47x 4.85x
EV / EBIT -16.1x 14.1x 15.3x 39.7x 42.8x 12.3x 8.86x 7.53x
EV / FCF 11.3x -118x -38.6x -11.4x -27.7x 84.9x 19.7x 33.1x
FCF Yield 8.83% -0.85% -2.59% -8.78% -3.61% 1.18% 5.08% 3.02%
Dividend per Share 2 - - 0.72 0.72 - 0.7252 0.7725 0.7733
Rate of return - - 2.49% 2.14% - 1.7% 1.81% 1.81%
EPS 2 1.61 0.87 0.81 0.76 0.79 3.401 4.259 4.828
Distribution rate - - 88.9% 94.7% - 21.3% 18.1% 16%
Net sales 1 15,790 23,814 26,091 27,483 28,063 32,123 33,302 34,602
EBITDA 1 -9 2,471 2,422 2,114 2,099 3,655 4,545 4,912
EBIT 1 -1,281 1,120 900 457 539 2,071 2,805 3,166
Net income 1 977 539 498 465 441 1,694 2,136 2,230
Net Debt 1 -4,777 -4,204 -3,467 -2,026 1,670 4,513 3,867 2,869
Reference price 2 42.84 33.67 28.88 33.62 41.33 42.70 42.70 42.70
Nbr of stocks (in thousands) 591,920 593,752 596,115 599,737 517,155 491,076 - -
Announcement Date 27/01/22 26/01/23 25/01/24 30/01/25 28/01/26 - - -
1USD in Million2USD
Estimates

P/E ratio, Detailed evolution

P/E (Y) EV / Sales (Y) EV / EBITDA (Y) Dividend Yield (Y) Capi.($)
12.55x0.79x6.97x1.7% 20.97B
11.97x0.6x7.81x-.--% 8.44B
32.08x2.19x9.45x2.59% 4.35B
25.43x1.64x8.1x1.46% 3.79B
19.84x1.12x6.95x-.--% 1.68B
16.78x1.62x4.33x0.59% 1.58B
8.21x0.93x3.9x7.17% 1.45B
-4.95x1.39x8.92x-.--% 1.05B
-10.52x1.27x4.03x-.--% 938M
Average 12.38x 1.28x 6.72x 1.5% 4.92B
Weighted average by Cap. 14.85x 1.04x 7.26x 1.44%

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.