Southwest Airlines (LUV) fundamentals: P/E, valuation, undervalued?
Southwest Airlines · Industrials · ref. ETF XLI · price $40.65
In short — Southwest Airlines trades at 25.4× earnings (P/E), 9.3× forward, with a net margin of 2.8 % and revenue growth of +16 %. Read: Cheap for the growth (P/E 9 for ~20% growth (PEG 0.5)).
Is Southwest Airlines stock cheap or undervalued? A good time to buy? Here are its fundamentals — P/E, PEG, margin and income statement — to judge its valuation.
📈 1-year price
$40.65+21.6% over range
Oct 14, 25low $29.67 · high $54.8Oct 13, 26
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SellBuy
Hold
44% recommend buying · 16 analysts
Valuation : Cheap for the growth — P/E 9 for ~20% growth (PEG 0.5)
Valuation
25.4
P/E (price/earnings)
9.3
Forward P/E
1.24
PEG
2.8
Price/book (P/B)
$19.9B
Market cap
1.60
EPS
Profitability & growth
2.8 %
Net margin
+16 %
Revenue growth
+21 %
Earnings growth
$6.9B
Total debt
Southwest Airlines income statement
| Fiscal year | Revenue | Net income | Margin |
|---|---|---|---|
| 2022 | $23.8B | $539M | 2.3 % |
| 2023 | $26.1B | $498M | 1.9 % |
| 2024 | $27.5B | $465M | 1.7 % |
| 2025 | $28.1B | $441M | 1.6 % |
⚠️ Indicative financial data (Yahoo Finance), not investment advice. Amounts in $.
Frequently asked questions
What is Southwest Airlines's P/E and is the stock undervalued? What's a good P/E?
Southwest Airlines's P/E is 25.4 (forward 9.3). Below ~15 = fairly cheap, above ~30 = expensive. Our valuation verdict: "Cheap for the growth".
Is Southwest Airlines profitable?
Southwest Airlines has a net margin of 2.8 % (EPS 1.60). The company is profitable.
Is LUV stock expensive?
Our read: "Cheap for the growth" — P/E 9 for ~20% growth (PEG 0.5). Cross-check with growth and sector.
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