Southwest Airlines Co
F:SWN

Watchlist Manager
Southwest Airlines Co Logo
Southwest Airlines Co
F:SWN
Watchlist
Price: 35.8 EUR 1.83%
Market Cap: 21.4B EUR

Intrinsic Value

The intrinsic value of one SWN stock under the Base Case scenario is 45.8 EUR. Compared to the current market price of 35.8 EUR, Southwest Airlines Co is Undervalued by 22%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

SWN Intrinsic Value
45.8 EUR
Undervaluation 22%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation History
Southwest Airlines Co

What is Valuation History?
Ask AI Assistant
What other research platforms think about SWN?

Let our AI compare Alpha Spread’s intrinsic value with external valuations from Simply Wall St, GuruFocus, ValueInvesting.io, Seeking Alpha, and others.

Discover External Valuations
Why is SWN valued this way?

Let our AI break down the key assumptions behind the intrinsic value calculation for Southwest Airlines Co.

Explain Valuation
Compare SWN to

Fundamental Analysis

Company Overview
Loading...
Business Segments
Loading...
Economic Moat
Loading...
Earnings Call
Loading...
Management
Loading...
Contacts
Loading...
Bear Theses

Southwest’s recent operational disruptions and the resulting reputational hits have revealed potential weaknesses in its point-to-point model, threatening its long-cultivated brand loyalty and raising concerns about the carrier’s ability to maintain market share.

Prolonged labor negotiations and rising wage pressures could erode Southwest’s cost advantage, particularly given pilot and flight attendant efforts to secure higher compensation and improved working conditions.

The airline’s reliance on a single aircraft type (the Boeing 737 family) provides operational simplicity but amplifies risks tied to supply chain challenges and regulatory changes, which could disrupt Southwest’s fleet expansion and network growth plans.

Bull Theses

Southwest’s strong balance sheet, bolstered by its historically prudent fuel hedging practices and limited long-term debt, provides financial flexibility to navigate cyclical downturns and invest in route expansion.

High customer loyalty and a well-differentiated brand built on no-frills, no-change-fee policies give Southwest pricing power and resilient demand, helping it maintain revenue stability in competitive markets.

Continued network optimization—expanding into previously unserved or underserved airports—positions Southwest to capitalize on leisure travel rebounds and diversify its route offerings beyond its traditional strongholds.

Show More Less
How do you feel about LUV?
Bearish
Neutral
Bullish
Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Southwest Airlines Co

Current Assets 5.4B
Cash & Short-Term Investments 3B
Receivables 1.1B
Other Current Assets 1.3B
Non-Current Assets 22.9B
PP&E 20.9B
Intangibles 1.3B
Other Non-Current Assets 778m
Current Liabilities 11B
Accounts Payable 788m
Accrued Liabilities 2.8B
Other Current Liabilities 7.4B
Non-Current Liabilities 9.5B
Long-Term Debt 4.1B
Other Non-Current Liabilities 5.5B
Efficiency

Free Cash Flow Analysis
Southwest Airlines Co

Last Value
3-Years Average
FCF Margin
Conversion Rate

Earnings Waterfall
Southwest Airlines Co

Revenue
27.6B USD
Cost of Revenue
-7.3B USD
Gross Profit
20.3B USD
Operating Expenses
-19.9B USD
Operating Income
313m USD
Other Expenses
66m USD
Net Income
379m USD
Fundamental Scores

SWN Profitability Score
Profitability Due Diligence

Southwest Airlines Co's profitability score is 44/100. The higher the profitability score, the more profitable the company is.

Exceptional Gross Margin
Strong 3Y Average Gross Margin
Gross Margin is Increasing
Declining Net Margin
44/100
Profitability
Score

Southwest Airlines Co's profitability score is 44/100. The higher the profitability score, the more profitable the company is.

SWN Solvency Score
Solvency Due Diligence

Southwest Airlines Co's solvency score is 38/100. The higher the solvency score, the more solvent the company is.

Low D/E
Long-Term Solvency
Positive Net Debt
Average Altman Z-Score
38/100
Solvency
Score

Southwest Airlines Co's solvency score is 38/100. The higher the solvency score, the more solvent the company is.

Wall St
Price Targets

SWN Price Targets Summary
Southwest Airlines Co

Wall Street analysts forecast SWN stock price to drop over the next 12 months.

According to Wall Street analysts, the average 1-year price target for SWN is 29.24 EUR with a low forecast of 16.34 EUR and a high forecast of 41.12 EUR.

Lowest
Price Target
16.34 EUR
54% Downside
Average
Price Target
29.24 EUR
18% Downside
Highest
Price Target
41.12 EUR
15% Upside
View Analyst Estimates
View Analyst Estimates

Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Previous Payment
-
Today
Next Payment
-
Today
Dec 25, 2025
Previous Payment
-
Next Payment
-
Ex-Dividend Date
-
Shareholder Yield

Current shareholder yield for LUV is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Competitive Landscape

Company Market Cap Intrinsic Valuation Profitability Solvency Price Change
1Y 3Y 5Y

Ownership

LUV Insider Trading
Buy and sell transactions by insiders

SWN News

Other Videos
What is the Intrinsic Value of one SWN stock?

The intrinsic value of one SWN stock under the Base Case scenario is 45.8 EUR.

Is SWN stock undervalued or overvalued?

Compared to the current market price of 35.8 EUR, Southwest Airlines Co is Undervalued by 22%.

Back to Top