Southwest Gas Holdings, Inc.

NYSE:SWX Stock Report

Market Cap: US$5.0b

Southwest Gas Holdings Valuation

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

Valuation Score

1/6

Valuation Score 1/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: SWX ($69.65) is trading above our estimate of fair value ($1.72)

Significantly Below Fair Value: SWX is trading above our estimate of fair value.

Key Valuation Metric

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

Key metric: As SWX is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for SWX. This is calculated by dividing SWX's market cap by their current earnings.
What is SWX's PE Ratio?
PE Ratio27.9x
EarningsUS$179.23m
Market CapUS$5.00b

Price to Earnings Ratio vs Peers

How does SWX's PE Ratio compare to its peers?

The above table shows the PE ratio for SWX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average31.6x
NFG National Fuel Gas
70.2x44.6%US$5.4b
SR Spire
16.3x7.7%US$3.9b
OGS ONE Gas
18x9.9%US$3.9b
UGI UGI
21.8x12.8%US$5.9b
SWX Southwest Gas Holdings
27.9x14.2%US$5.0b

Price-To-Earnings vs Peers: SWX is good value based on its Price-To-Earnings Ratio (27.9x) compared to the peer average (31.6x).

Price to Earnings Ratio vs Industry

How does SWX's PE Ratio compare vs other companies in the Global Gas Utilities Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
SWX 27.9xIndustry Avg. 14.5xNo. of Companies15PE0816243240+
0 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: SWX is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the Global Gas Utilities industry average (14.5x).

Price to Earnings Ratio vs Fair Ratio

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

SWX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio27.9x
Fair PE Ratio22.1x

Price-To-Earnings vs Fair Ratio: SWX is expensive based on its Price-To-Earnings Ratio (27.9x) compared to the estimated Fair Price-To-Earnings Ratio (22.1x).

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 SWX forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$69.65
US$77.40
+11.1%
4.7%US$84.00US$73.00n/a5
Dec ’25US$78.16
US$78.50
+0.4%
4.2%US$84.00US$76.00n/a4
Nov ’25US$72.05
US$79.00
+9.6%
7.6%US$89.00US$73.00n/a4
Oct ’25US$73.57
US$78.25
+6.4%
8.8%US$89.00US$70.00n/a4
Sep ’25US$72.72
US$77.25
+6.2%
9.2%US$89.00US$70.00n/a4
Aug ’25US$73.80
US$80.00
+8.4%
6.6%US$89.00US$76.00n/a4
Jul ’25US$69.25
US$78.75
+13.7%
7.7%US$89.00US$73.00n/a4
Jun ’25US$77.59
US$78.75
+1.5%
7.7%US$89.00US$73.00n/a4
May ’25US$74.61
US$74.60
-0.01%
12.3%US$89.00US$63.40n/a4
Apr ’25US$75.58
US$74.60
-1.3%
12.3%US$89.00US$63.40n/a4
Mar ’25US$69.61
US$70.28
+1.0%
14.4%US$89.00US$63.00n/a5
Feb ’25US$59.93
US$68.48
+14.3%
15.0%US$89.00US$63.00n/a5
Jan ’25US$63.35
US$69.60
+9.9%
14.3%US$89.00US$63.00n/a5
Dec ’24US$60.31
US$69.40
+15.1%
14.5%US$89.00US$62.00US$78.165
Nov ’24US$58.01
US$68.80
+18.6%
15.2%US$89.00US$61.00US$72.055
Oct ’24US$60.41
US$71.33
+18.1%
11.7%US$89.00US$62.00US$73.576
Sep ’24US$62.16
US$71.67
+15.3%
10.8%US$87.00US$62.00US$72.726
Aug ’24US$65.89
US$69.83
+6.0%
12.5%US$87.00US$62.00US$73.806
Jul ’24US$63.65
US$69.40
+9.0%
13.5%US$87.00US$62.00US$69.255
Jun ’24US$58.00
US$68.60
+18.3%
13.6%US$87.00US$62.00US$77.595
May ’24US$56.46
US$68.40
+21.1%
11.7%US$84.00US$62.00US$74.615
Apr ’24US$62.45
US$68.40
+9.5%
11.7%US$84.00US$62.00US$75.585
Mar ’24US$59.74
US$73.80
+23.5%
18.6%US$100.00US$63.00US$69.615
Feb ’24US$67.11
US$76.00
+13.2%
16.9%US$100.00US$65.00US$59.935
Jan ’24US$61.88
US$76.00
+22.8%
16.9%US$100.00US$65.00US$63.355
Dec ’23US$67.28
US$75.80
+12.7%
20.1%US$105.00US$65.00US$60.315

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2024/12/22 05:03
End of Day Share Price 2024/12/20 00:00
Earnings2024/09/30
Annual Earnings2023/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Southwest Gas Holdings, Inc. is covered by 18 analysts. 4 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Gary HovisArgus Research Company
Ishan MajumdarBaptista Research
Jim HarmonBarclays