Southwest Airlines Co.

BMV:LUV * Stock Report

Market Cap: Mex$375.4b

Southwest Airlines Valuation

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

Valuation Score

4/6

Valuation Score 4/6

  • 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 LUV * when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LUV * (MX$629.99) is trading below our estimate of fair value (MX$2375.45)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LUV *?

Other financial metrics that can be useful for relative valuation.

LUV * key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA10.9x
PEG Ration/a

Price to Sales Ratio vs Peers

How does LUV *'s PS Ratio compare to its peers?

The above table shows the PS ratio for LUV * vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PSEstimated GrowthMarket Cap
Peer Average3.3x
VOLAR A Controladora Vuela Compañía de Aviación. de
0.3x5.1%Mex$17.0b
AEROMEX * Grupo Aeroméxico. de
0.3xn/aMex$22.8b
GAP B Grupo Aeroportuario del Pacífico. de
7x15.2%Mex$180.6b
ASUR B Grupo Aeroportuario del Sureste S. A. B. de C. V
5.5x10.9%Mex$165.8b
LUV * Southwest Airlines
0.7x4.4%Mex$18.6b

Price-To-Sales vs Peers: LUV * is good value based on its Price-To-Sales Ratio (0.7x) compared to the peer average (4.3x).

Price to Earnings Ratio vs Industry

How does LUV *'s PE Ratio compare vs other companies in the Global Airlines Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
 n/an/an/a
No. of CompaniesPS048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a17.1%
 n/an/an/a
No more companies

Price-To-Sales vs Industry: LUV * 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 LUV *'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.

LUV * PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.7x
Fair PS Ratio1.1x

Price-To-Sales vs Fair Ratio: LUV * is good value based on its Price-To-Sales Ratio (0.7x) compared to the estimated Fair Price-To-Sales Ratio (1.1x).

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 LUV * forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentMex$622.00
Mex$587.25
-5.6%
17.6%Mex$781.16Mex$380.56n/a17
Oct ’25Mex$584.00
Mex$520.19
-10.9%
19.2%Mex$689.08Mex$374.07n/a17
Sep ’25Mex$568.00
Mex$491.47
-13.5%
17.1%Mex$640.66Mex$368.86n/a16
Aug ’25Mex$490.00
Mex$473.76
-3.3%
17.0%Mex$614.53Mex$353.82n/a16
Jul ’25Mex$529.19
Mex$484.41
-8.5%
16.8%Mex$679.87Mex$349.12n/a16
Jun ’25Mex$455.79
Mex$452.52
-0.7%
18.6%Mex$637.80Mex$318.90n/a18
May ’25Mex$450.02
Mex$460.67
+2.4%
18.5%Mex$646.76Mex$323.38n/a18
Apr ’25Mex$486.16
Mex$499.27
+2.7%
19.5%Mex$701.80Mex$317.48n/a19
Mar ’25Mex$578.09
Mex$504.41
-12.7%
21.8%Mex$716.61Mex$324.18n/a19
Feb ’25Mex$511.37
Mex$480.53
-6.0%
23.1%Mex$686.35Mex$257.38n/a19
Jan ’25Mex$499.98
Mex$455.49
-8.9%
26.6%Mex$806.89Mex$309.02n/a19
Dec ’24Mex$456.35
Mex$453.24
-0.7%
26.6%Mex$804.50Mex$308.11n/a19
Nov ’24Mex$396.00
Mex$501.56
+26.7%
25.2%Mex$837.18Mex$320.62Mex$622.0019
Oct ’24Mex$475.00
Mex$593.34
+24.9%
21.6%Mex$958.71Mex$348.62Mex$584.0019
Sep ’24Mex$534.00
Mex$608.98
+14.0%
18.9%Mex$923.64Mex$419.84Mex$568.0019
Aug ’24Mex$557.00
Mex$640.19
+14.9%
15.2%Mex$920.94Mex$502.33Mex$490.0018
Jul ’24Mex$615.00
Mex$701.50
+14.1%
17.4%Mex$1,027.84Mex$548.18Mex$529.1918
Jun ’24Mex$514.54
Mex$710.04
+38.0%
18.2%Mex$1,105.86Mex$561.71Mex$455.7918
May ’24Mex$544.00
Mex$765.34
+40.7%
22.3%Mex$1,150.71Mex$575.36Mex$450.0218
Apr ’24Mex$583.99
Mex$810.64
+38.8%
20.3%Mex$1,158.34Mex$579.17Mex$486.1618
Mar ’24Mex$609.50
Mex$849.60
+39.4%
17.8%Mex$1,189.24Mex$650.36Mex$578.0918
Feb ’24Mex$672.00
Mex$862.34
+28.3%
17.4%Mex$1,201.23Mex$656.92Mex$511.3718
Jan ’24Mex$650.00
Mex$978.87
+50.6%
17.0%Mex$1,346.22Mex$772.10Mex$499.9818
Dec ’23Mex$757.00
Mex$956.66
+26.4%
16.9%Mex$1,264.28Mex$747.07Mex$456.3517
Nov ’23Mex$720.00
Mex$969.76
+34.7%
18.0%Mex$1,301.51Mex$769.08Mex$396.0017

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

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