SOUTHWEST AIRLINES CO (LUV)
Air Transportation, Scheduled
Latest Price
$39.52
TTM P/E
25.01
Normalized P/E
39.92
Div Yield
1.82%
Book Value
14.34
P/B Ratio
2.76
Valuation metrics
adjust assumptions →EPS: $0.79
Book value / share: $14.30
Formula: √(22.5 × EPS × BVPS)
Graham Number
$15.94
60% 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
$2.78
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
$52.48
+33% upside
EPS: $0.79
Target P/E: 40×
Formula: EPS × P/E
P/E Fair Value
$31.60
20% downside
Institutional Ownership
93.8% held by institutions| Institution | Shares | Value | Ownership % | Change | Filing Date |
|---|---|---|---|---|---|
| PRIMECAP MANAGEMENT CO/CA/ | 48.80M | $2.51B | 9.88% | +1.73M | 2026-06-30 |
| FRANKLIN RESOURCES INC | 46.58M | $2.40B | 9.43% | +2.19M | 2026-06-30 |
| VANGUARD CAPITAL MANAGEMENT LLC | 31.61M | $1.63B | 6.40% | -30.5K | 2026-06-30 |
| BlackRock, Inc. | 29.92M | $1.54B | 6.06% | +1.34M | 2026-06-30 |
| STATE STREET CORP | 29.33M | $1.51B | 5.94% | -192.8K | 2026-06-30 |
| Elliott Investment Management L.P. | 24.31M | $1.25B | 4.92% | -6.04M | 2026-06-30 |
| VANGUARD PORTFOLIO MANAGEMENT LLC | 24.00M | $1.23B | 4.86% | +869.8K | 2026-06-30 |
| PRICE T ROWE ASSOCIATES INC /MD/ | 13.91M | $715.0M | 2.81% | +10.7K | 2026-06-30 |
| GEODE CAPITAL MANAGEMENT, LLC | 12.74M | $653.0M | 2.58% | -236.7K | 2026-06-30 |
| AMERIPRISE FINANCIAL INC | 10.78M | $553.0M | 2.18% | +792.9K | 2026-06-30 |