Ticker League

Fair Value for Southwest Airlines (LUV)

See growth priced into Southwest Airlines (LUV): reverse DCF, implied rate vs history and analysts, FCF view. Free intrinsic value calculator for education.

Fair value (multi-method)

Four independent methods triangulate what LUV is worth. The headline is the Forward-DCF intrinsic value at a normalized growth rate; the margin of safety compares it to the current price.

Estimated fair value (Forward DCF)

$3.95

Above fair value
-1,108.02% vs current price $47.66

Method range

$3.95 $103.78

median $32.19

Methods disagree

Valuation methods

Each method’s implied fair value per share and its upside versus the current price. Missing methods (no analyst coverage, negative earnings, etc.) are shown as “—”.

  • Forward DCF$3.95
  • Exit multiple$103.78
  • Analyst target$52.05
  • Graham number$12.33

Stock price

$47.66

EPS (TTM)

$1.63

5Y EPS CAGR

-24.5%

Fair value @ hist. growth

$3.95

This analysis is for informational purposes only and is not financial advice. Scenario prices and DCF-style figures depend on your assumptions and data from public filings and estimates. They are not forecasts of future returns.

Implied EPS growth

13.4%

per year over your projection horizon

Premium vs DCF

Margin of safety -1,108.0% vs hist-growth DCF

Historical 5Y CAGR

-24.5%

Your model implies

13.4%

Next-year analyst consensus

89.7%

Model inputs

Move sliders to test how the reverse DCF reacts. Historical-growth markers show where the company has actually grown over the last cycle.

Discount rate (cost of equity proxy)10.3%
Terminal growth2.50%
Projection years10 yr

Sensitivity — implied growth vs your assumptions

Each cell shows the per-share growth rate the market would need to justify the current price at that combination of discount rate (rows) and terminal growth (columns). Your selected inputs are highlighted.

Row axis: discount rate. Column axis: terminal growth.Terminal g →↓ Discount1.5%2.0%2.5%3.0%3.5%
8.3%10.3%9.6%8.9%8.1%7.2%
9.3%12.5%11.9%11.3%10.6%9.8%
10.3%14.5%14.0%13.4%12.8%12.2%
11.3%16.4%15.9%15.4%14.9%14.4%
12.3%18.2%17.8%17.4%16.9%16.4%
Color≤ historical CAGRModerate premiumHigh premium (≥ 15pp above hist)Your inputs

Historical multiples

Each bar is the trailing five-year range (low left, high right). Filled portion runs from low to today; the dot marks today; the small tick marks the five-year median. Low, median, and high are listed under each bar.

P/EToday50.4· at high
5Y low26.0
Median37.0
5Y high50.4
P/SToday0.8
5Y low0.7
Median0.8
5Y high1.6
EV/EBITDAToday11.4· at high
5Y low7.1
Median8.4
5Y high11.4

PEG

4.02

Demanding vs growth

Net debt

$3.15B

Total debt − cash

Beta

1.12

Vs market benchmark

Annual diluted EPS

Per-share earnings by fiscal year — last 5 years anchor the CAGR reference above.

Scale: -5.44 to 5.78 EPS; horizontal line at 0. Fiscal years with no row in the database are omitted.

Frequently asked questions