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Southwest Airlines Co (LUV)
Air Transportation, Scheduled
Latest Price
$42.43
TTM P/E
20.90
Normalized P/E
44.48
TTM Div Yield
1.70%
Fwd Div Yield
1.70%
Book Value
14.98
P/B Ratio
2.83
Valuation metrics
adjust assumptions →EPS: $0.79
Book value / share: $15.48
Formula: √(22.5 × EPS × BVPS)
Graham Number
$16.59
61% downside
Norm. op. income: $428M (median of 7yr)
Tax rate: 24%
Discount rate: 10%
Growth assumption: zero (EPV is a no-growth value)
Earnings Power Value
$3.01
93% downside
Base FCF: $1.8B (median of recent 5yr)
Growth: 5%/yr (median YOY, capped at 25%)
Discount rate: 10%
Terminal growth: 3%
Projection horizon: 10 years
DCF Fair Value
$56.80
+34% upside
EPS: $0.79
Target P/E: 44×
Formula: EPS × P/E
P/E Fair Value
$34.76
18% downside
Institutional Ownership
94.2% held by institutions| Institution | Shares | Value | Ownership % | Change | Filing Date |
|---|---|---|---|---|---|
| Primecap Management Co | 48.80M | $2.51B | 9.92% | +1.73M | 2026-06-30 |
| Franklin Resources Inc | 46.58M | $2.40B | 9.47% | +2.19M | 2026-06-30 |
| Vanguard Capital Management LLC | 31.61M | $1.63B | 6.43% | -30.5K | 2026-06-30 |
| BlackRock, Inc. | 29.92M | $1.54B | 6.08% | +1.34M | 2026-06-30 |
| State Street Corp | 29.33M | $1.51B | 5.96% | -192.8K | 2026-06-30 |
| Elliott Investment Management L.P. | 24.31M | $1.25B | 4.94% | -6.04M | 2026-06-30 |
| Vanguard Portfolio Management LLC | 24.00M | $1.23B | 4.88% | +869.8K | 2026-06-30 |
| Price T Rowe Associates Inc | 13.91M | $715.0M | 2.83% | +10.7K | 2026-06-30 |
| Geode Capital Management, LLC | 12.74M | $653.0M | 2.59% | -236.7K | 2026-06-30 |
| Ameriprise Financial Inc | 10.78M | $553.0M | 2.19% | +792.9K | 2026-06-30 |