Southwest Airlines Co.

LSE:0L8F Stock Report

Market Cap: US$19.1b

Southwest Airlines Valuation

Is 0L8F undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0L8F when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0L8F ($32.01) is trading below our estimate of fair value ($245.28)

Significantly Below Fair Value: 0L8F is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0L8F?

Key metric: As 0L8F is unprofitable we use its Price-To-Sales Ratio for relative valuation analysis.

The above table shows the Price to Sales ratio for 0L8F. This is calculated by dividing 0L8F's market cap by their current revenue.
What is 0L8F's PS Ratio?
PS Ratio0.7x
SalesUS$27.38b
Market CapUS$19.05b

Price to Sales Ratio vs Peers

How does 0L8F's PS Ratio compare to its peers?

The above table shows the PS ratio for 0L8F vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average0.4x
IAG International Consolidated Airlines Group
0.5x3.5%UK£11.9b
EZJ easyJet
0.4x6.8%UK£3.9b
JET2 Jet2
0.5x8.8%UK£3.0b
WIZZ Wizz Air Holdings
0.3x14.8%UK£1.3b
0L8F Southwest Airlines
0.7x4.4%US$19.1b

Price-To-Sales vs Peers: 0L8F is expensive based on its Price-To-Sales Ratio (0.7x) compared to the peer average (0.4x).

Price to Sales Ratio vs Industry

How does 0L8F's PS Ratio compare vs other companies in the European Airlines Industry?

6 CompaniesPrice / SalesEstimated GrowthMarket Cap
0L8F 0.7xIndustry Avg. 0.5xNo. of Companies6PS00.40.81.21.62+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Sales vs Industry: 0L8F is expensive based on its Price-To-Sales Ratio (0.7x) compared to the Global Airlines industry average (0.5x).

Price to Sales Ratio vs Fair Ratio

What is 0L8F's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

0L8F PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio0.5x

Price-To-Sales vs Fair Ratio: 0L8F is expensive based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (0.5x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst 0L8F forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$32.14
US$29.76
-7.4%
16.1%US$39.00US$19.00n/a19
Nov ’25US$30.60
US$29.67
-3.0%
16.8%US$39.00US$19.00n/a17
Oct ’25US$30.06
US$26.42
-12.1%
19.2%US$35.00US$19.00n/a17
Sep ’25US$28.88
US$25.32
-12.3%
17.1%US$33.00US$19.00n/a16
Aug ’25US$26.34
US$25.44
-3.4%
17.0%US$33.00US$19.00n/a16
Jul ’25US$27.82
US$26.36
-5.2%
16.8%US$37.00US$19.00n/a16
Jun ’25US$26.38
US$26.96
+2.2%
18.6%US$38.00US$19.00n/a18
May ’25US$25.63
US$27.07
+5.6%
18.5%US$38.00US$19.00n/a18
Apr ’25US$29.33
US$29.88
+1.9%
19.5%US$42.00US$19.00n/a19
Mar ’25US$33.99
US$29.56
-13.0%
21.8%US$42.00US$19.00n/a19
Feb ’25US$29.98
US$28.01
-6.6%
23.1%US$40.00US$15.00n/a19
Jan ’25US$28.95
US$26.53
-8.4%
26.6%US$47.00US$18.00n/a19
Dec ’24US$26.46
US$26.48
+0.07%
26.6%US$47.00US$18.00n/a19
Nov ’24US$22.21
US$28.16
+26.8%
25.2%US$47.00US$18.00US$30.6019
Oct ’24US$26.91
US$34.04
+26.5%
21.6%US$55.00US$20.00US$30.0619
Sep ’24US$31.44
US$36.26
+15.3%
18.9%US$55.00US$25.00US$28.8819
Aug ’24US$33.35
US$38.23
+14.6%
15.2%US$55.00US$30.00US$26.3418
Jul ’24US$36.14
US$40.95
+13.3%
17.4%US$60.00US$32.00US$27.8218
Jun ’24US$29.28
US$40.45
+38.1%
18.2%US$63.00US$32.00US$26.3818
May ’24US$30.29
US$42.57
+40.5%
22.3%US$64.00US$32.00US$25.6318
Apr ’24US$32.38
US$44.79
+38.3%
20.3%US$64.00US$32.00US$29.3318
Mar ’24US$33.65
US$45.72
+35.9%
17.8%US$64.00US$35.00US$33.9918
Feb ’24US$35.49
US$45.94
+29.5%
17.4%US$64.00US$35.00US$29.9818
Jan ’24US$33.44
US$49.44
+47.9%
17.0%US$68.00US$39.00US$28.9518
Dec ’23US$39.89
US$49.94
+25.2%
16.9%US$66.00US$39.00US$26.4617
Nov ’23US$37.05
US$49.18
+32.7%
18.0%US$66.00US$39.00US$22.2117

Analyst Forecast: Target price is lower than the current share price.

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