Header cover image

LUV valuation

JU
julioNot Invested
Community Contributor

Published

April 15 2024

Updated

July 16 2024

Narratives are currently in beta

Catalysts

  • Are there any products or services that could move sales or earnings meaningfully?
  • Are there any industry tailwinds this stock is benefitting or hindered from?

Assumptions

  • Where do you think revenue will be in 5 years time? and why?
  • Earnings are forecast to grow 25.99% per year
  • Where do you think earnings will be in 5 years time? and why?

Risks

  • Are there any risks that your catalysts won't play out as expected?
  • Large one-off items impacting financial results
  • Are there any regulatory or competitor risks that could change the outcomes above?

Valuation

  • Where do you think the business will be in 3, 5 or 10 years time?
  • What do you think revenue and profit margins will be?
  • What do you think the valuation multiple will bein the future?

How well do narratives help inform your perspective?

Disclaimer

The user julio holds no position in NYSE:LUV. Simply Wall St has no position in any of the companies mentioned. The author of this narrative is not affiliated with, nor authorised by Simply Wall St as a sub-authorised representative. This narrative is general in nature and explores scenarios and estimates created by the author. The narrative does not reflect the opinions of Simply Wall St, and the views expressed are the opinion of the author alone, acting on their own behalf. These scenarios are not indicative of the company's future performance and are exploratory in the ideas they cover. The fair value estimates are estimations only, and does not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that the author's analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Read more narratives

Fair Value
US$34.8
6.7% undervalued intrinsic discount
julio's Fair Value
Future estimation in
PastFuture010b20b30b40b50b20132016201920222024202520282029Revenue US$54.6bEarnings US$973.9m
% p.a.
Decrease
Increase
Current revenue growth rate
4.49%
Airlines revenue growth rate
5.18%