Southwest Airlines

Remote Work Shifts And High Costs Will Erode Margins

AnalystLowTarget

Not Invested

Consensus Narrative from 20 Analysts

Published

17 Apr 25

Updated

07 May 25

AnalystLowTarget's Fair Value

US$19.00

69.8% overvalued

10 Sep

US$32.27

11.5%

1.7%

11.5%

1.7%

You can edit this narrative until May 12 5:58 AM. Then, changes will post as Updates.

Author's Valuation

US$19.0

69.8% overvalued

AnalystLowTarget Fair Value

Narrative

Updates2

Shared on07 May 25

AnalystLowTarget made no meaningful changes to valuation assumptions.

Shared on30 Apr 25
Fair value Decreased 28%

AnalystLowTarget Fair Value

US$19

69.8% overvalued

Future estimation in

% p.a.

Decrease

Increase

Current revenue growth rate

5.72%

Airlines revenue growth rate

162.53%

Risk Level (Discount Rate)

Our default considers factors like the company's size, volatility, profitablity and country of operation.

Decrease

Increase

Current discount rate

10.44%

Calculation

US$1.50b

Earnings '28

7.22x

PE Ratio '28

US$10.80b

Market Cap '28

US$10.80b

Market Cap '28

422.44m

No. shares '28

US$25.55

Share Price '28

US$25.55 Share Price '28

Discounted to 2025 @ 10.42% p.a.

US$18.98

Fair Value '25

Remote Work Shifts And High Costs Will Erode Margins

Shared on07 May 25

Shared on30 Apr 25Fair value Decreased 28%

Shared on30 Apr 25
Fair value Decreased 28%