What is Southwest Airlines's EV/EBITDA ratio?

Southwest Airlines (LUV) EV/EBITDA ratio is 9.8× as of August 7, 2026. The ratio is calculated by dividing enterprise value by trailing twelve-month EBITDA, using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

How is the EV/EBITDA ratio calculated?

EV/EBITDA = Enterprise Value ÷ Trailing Twelve-Month (TTM) EBITDA, where Enterprise Value = Market Capitalisation + Total Debt − Cash & Short-Term Investments. All inputs are sourced from audited GAAP/IFRS filings and translated to USD using period-end exchange rates so the multiple is comparable across companies and currencies.

What is a good EV/EBITDA ratio for Southwest Airlines?

Mature, cash-generative businesses commonly trade in the 8–12× EV/EBITDA range; higher-growth, asset-light companies often trade at 15–25×+. EV/EBITDA is most useful for comparing companies with different capital structures (debt levels) or tax regimes. For Southwest Airlines specifically, the relevant sector benchmark is the current sector median of 16.6×.

Is Southwest Airlines's EV/EBITDA ratio high or low?

Southwest Airlines's EV/EBITDA ratio of 9.8× is above its own 5-year average of 8.3× and below the sector median of 16.6×. That places the current reading at the 79th percentile of its 10-year history. A higher multiple usually reflects stronger expected growth, lower perceived risk, or higher returns on capital; a lower multiple reflects the opposite.

What is Southwest Airlines's historical EV/EBITDA ratio range?

In the available daily series, Southwest Airlines (LUV) EV/EBITDA ratio has ranged from a low of 3.7× in 2012 to a high of 477.9× in 2007. The 5-year average is 8.3× and the 5-year median is 7.7×.

What was Southwest Airlines's EV/EBITDA ratio in 2025?

Southwest Airlines (LUV) EV/EBITDA ratio at the end of 2025 was 10.8×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month EBITDA figure available at that date.

Why does Southwest Airlines's EV/EBITDA ratio change over time?

Valuation multiples move with two inputs: the numerator (enterprise value, which tracks share price plus net debt) and the denominator (EBITDA). Share-price changes — driven by interest rates, earnings expectations, risk appetite, and broader market sentiment — typically dominate short-term moves, while changes in the underlying fundamental drive the longer-term trend. As a result, the ratio can rise during stock-price rallies even if the business itself has not become more valuable, and fall during sell-offs even when fundamentals are improving.

Southwest Airlines (LUV) EV/EBITDA — Enterprise Value to EBITDA History

Current

9.8×

As of Aug 7, 2026

5-Year Average

8.3×

All-Time High

477.9×

Jun 30, 2007

All-Time Low

3.7×

Sep 30, 2012

EV/EBITDA daily chart for Southwest Airlines (LUV)

Aug 9, 2021 – Aug 7, 2026 · 1,255 trading days

EV/EBITDA is not shown for periods when TTM EBITDA was negative.

Historical EV/EBITDA for Southwest Airlines (LUV) from 2002 to 2025


2025	$21.3B	$2.24B	10.8×	+2.9×	Dec 31, 2025
2024	$20B	$2.47B	7.8×	+1.6×	Dec 31, 2024
2023	$17.2B	$2.39B	6.2×	-1.0×	Dec 31, 2023
2022	$20B	$2.38B	7.2×	-0.1×	Dec 31, 2022
2021	$25.4B	$3.03B	7.3×	—	Dec 31, 2021
2020	$27.4B	-$2.69B	—	—	Dec 31, 2020
2019	$28.3B	$4.26B	6.6×	+0.9×	Dec 31, 2019
2018	$26B	$4.46B	5.8×	-2.8×	Dec 31, 2018
2017	$38.7B	$4.55B	8.6×	+2.2×	Dec 31, 2017
2016	$30.8B	$4.84B	6.4×	+0.3×	Dec 31, 2016
2015	$27.9B	$4.59B	6.1×	-3.8×	Dec 31, 2015
2014	$28.7B	$2.86B	9.9×	+4.0×	Dec 31, 2014
2013	$13.2B	$2.18B	5.9×	+1.2×	Dec 31, 2013
2012	$7.53B	$1.66B	4.7×	-1.3×	Dec 31, 2012
2011	$6.6B	$1.22B	5.9×	-0.4×	Dec 31, 2011
2010	$9.71B	$1.52B	6.3×	-3.6×	Dec 31, 2010
2009	$8.47B	$949M	9.9×	+1.6×	Dec 31, 2009
2008	$6.36B	$995M	8.3×	—	Dec 31, 2008
2007	$8.94B	-$229M	—	—	Dec 31, 2007
2006	$12B	-$58M	—	—	Dec 31, 2006
2005	$13.2B	-$84M	—	—	Dec 31, 2005
2004	$12.7B	-$1.15B	—	—	Dec 31, 2004
2003	$12.2B	-$2.47B	—	—	Dec 31, 2003
2002	$10.8B	-$1.74B	—	—	Dec 31, 2002

202510.8×
20247.8×
20236.2×
20227.2×
20217.3×
2020—
20196.6×
20185.8×
20178.6×
20166.4×
20156.1×
20149.9×
20135.9×
20124.7×
20115.9×
20106.3×
20099.9×
20088.3×
2007—
2006—
2005—
2004—
2003—
2002—

About EV/EBITDA at Southwest Airlines (LUV)

Southwest Airlines (LUV) EV/EBITDA ratio is 9.8× as of August 7, 2026. The 5-year average is 8.3×. The sector median currently stands at 16.6×. The current ratio is at the 79th percentile of its own 10-year history.

Southwest Airlines (LUV) historical EV/EBITDA ratio has ranged from a low of 3.7× (2012) to a high of 477.9× (2007) in the available daily series.

The EV/EBITDA ratio (the enterprise multiple) compares enterprise value (EV) to trailing twelve-month (TTM) EBITDA. EV is calculated as market capitalisation + total debt − cash & short-term investments. Because EV/EBITDA is capital-structure-neutral and ignores non-cash depreciation and amortisation, it is the standard multiple used in M&A and for cross-company or cross-border comparisons. Note: this calculation uses a simplified EV (minority interest and preferred equity excluded due to data availability), consistent with most public financial-data providers.

Southwest Airlines EV/EBITDA by Year

Southwest Airlines EV/EBITDA 2025: 10.8×

Southwest Airlines (LUV) EV/EBITDA ratio in 2025 was 10.8×, expanded from 7.8× the prior year.

Southwest Airlines EV/EBITDA 2024: 7.8×

Southwest Airlines (LUV) EV/EBITDA ratio in 2024 was 7.8×, expanded from 6.2× the prior year.

Southwest Airlines EV/EBITDA 2023: 6.2×

Southwest Airlines (LUV) EV/EBITDA ratio in 2023 was 6.2×, contracted from 7.2× the prior year.

Southwest Airlines EV/EBITDA 2022: 7.2×

Southwest Airlines (LUV) EV/EBITDA ratio in 2022 was 7.2×, contracted from 7.3× the prior year.

Southwest Airlines EV/EBITDA 2021: 7.3×

Southwest Airlines (LUV) EV/EBITDA ratio in 2021 was 7.3×.

EV is calculated as Market Cap + Total Debt − Cash & Short-Term Investments (simplified). Minority interest and preferred equity are excluded due to data availability. This is consistent with the methodology used by most public financial data providers.

Sector peers by EV/EBITDA — chart

Current ratio vs. sector peers. Highlighted bar is this company.

Sector peers by EV/EBITDA — table

Industrials peers of Southwest Airlines (LUV), ranked by EV/EBITDA ratio.


Canadian National Railway (CNI)	13.5×
Lockheed Martin (LMT)	13.4×
Paychex (PAYX)	13.3×
Thomson Reuters (TRI)	13.3×
Tennant (TNC)	13.3×
Republic Services (RSG)	13.2×
Copart (CPRT)	13.0×
United Rentals (URI)	12.9×
Stanley Black & Decker (SWK)	12.8×
Equifax (EFX)	12.7×
Textron (TXT)	12.4×
Northrop Grumman (NOC)	12.2×
Brady (BRC)	12.1×
United Parcel Service (UPS)	10.9×
Amentum Holdings (AMTM)	10.5×
FedEx (FDX)	10.5×
McGrath RentCorp (MGRC)	10.2×
Gartner (IT)	10.1×
ABM Industries (ABM)	10.0×
Delta Air Lines (DAL)	9.1×
United Airlines Holdings (UAL)	7.3×
Honeywell International (HON)	7.2×
Matthews International (MATW)	7.0×
Upwork (UPWK)	6.9×
Ferrovial (FER)	3.8×

Frequently asked questions

Current

9.8×

As of Aug 7, 2026

5-Year Average

8.3×

All-Time High

477.9×

Jun 30, 2007

All-Time Low

3.7×

Sep 30, 2012

EV/EBITDA daily chart for Southwest Airlines (LUV)

Aug 9, 2021 – Aug 7, 2026 · 1,255 trading days

EV/EBITDA is not shown for periods when TTM EBITDA was negative.

Historical EV/EBITDA for Southwest Airlines (LUV) from 2002 to 2025


2025	$21.3B	$2.24B	10.8×	+2.9×	Dec 31, 2025
2024	$20B	$2.47B	7.8×	+1.6×	Dec 31, 2024
2023	$17.2B	$2.39B	6.2×	-1.0×	Dec 31, 2023
2022	$20B	$2.38B	7.2×	-0.1×	Dec 31, 2022
2021	$25.4B	$3.03B	7.3×	—	Dec 31, 2021
2020	$27.4B	-$2.69B	—	—	Dec 31, 2020
2019	$28.3B	$4.26B	6.6×	+0.9×	Dec 31, 2019
2018	$26B	$4.46B	5.8×	-2.8×	Dec 31, 2018
2017	$38.7B	$4.55B	8.6×	+2.2×	Dec 31, 2017
2016	$30.8B	$4.84B	6.4×	+0.3×	Dec 31, 2016
2015	$27.9B	$4.59B	6.1×	-3.8×	Dec 31, 2015
2014	$28.7B	$2.86B	9.9×	+4.0×	Dec 31, 2014
2013	$13.2B	$2.18B	5.9×	+1.2×	Dec 31, 2013
2012	$7.53B	$1.66B	4.7×	-1.3×	Dec 31, 2012
2011	$6.6B	$1.22B	5.9×	-0.4×	Dec 31, 2011
2010	$9.71B	$1.52B	6.3×	-3.6×	Dec 31, 2010
2009	$8.47B	$949M	9.9×	+1.6×	Dec 31, 2009
2008	$6.36B	$995M	8.3×	—	Dec 31, 2008
2007	$8.94B	-$229M	—	—	Dec 31, 2007
2006	$12B	-$58M	—	—	Dec 31, 2006
2005	$13.2B	-$84M	—	—	Dec 31, 2005
2004	$12.7B	-$1.15B	—	—	Dec 31, 2004
2003	$12.2B	-$2.47B	—	—	Dec 31, 2003
2002	$10.8B	-$1.74B	—	—	Dec 31, 2002

202510.8×
20247.8×
20236.2×
20227.2×
20217.3×
2020—
20196.6×
20185.8×
20178.6×
20166.4×
20156.1×
20149.9×
20135.9×
20124.7×
20115.9×
20106.3×
20099.9×
20088.3×
2007—
2006—
2005—
2004—
2003—
2002—

About EV/EBITDA at Southwest Airlines (LUV)

Southwest Airlines (LUV) historical EV/EBITDA ratio has ranged from a low of 3.7× (2012) to a high of 477.9× (2007) in the available daily series.

Southwest Airlines EV/EBITDA by Year

Southwest Airlines EV/EBITDA 2025: 10.8×

Southwest Airlines (LUV) EV/EBITDA ratio in 2025 was 10.8×, expanded from 7.8× the prior year.

Southwest Airlines EV/EBITDA 2024: 7.8×

Southwest Airlines (LUV) EV/EBITDA ratio in 2024 was 7.8×, expanded from 6.2× the prior year.

Southwest Airlines EV/EBITDA 2023: 6.2×

Southwest Airlines (LUV) EV/EBITDA ratio in 2023 was 6.2×, contracted from 7.2× the prior year.

Southwest Airlines EV/EBITDA 2022: 7.2×

Southwest Airlines (LUV) EV/EBITDA ratio in 2022 was 7.2×, contracted from 7.3× the prior year.

Southwest Airlines EV/EBITDA 2021: 7.3×

Southwest Airlines (LUV) EV/EBITDA ratio in 2021 was 7.3×.

Sector peers by EV/EBITDA — chart

Current ratio vs. sector peers. Highlighted bar is this company.

Sector peers by EV/EBITDA — table

Industrials peers of Southwest Airlines (LUV), ranked by EV/EBITDA ratio.


Canadian National Railway (CNI)	13.5×
Lockheed Martin (LMT)	13.4×
Paychex (PAYX)	13.3×
Thomson Reuters (TRI)	13.3×
Tennant (TNC)	13.3×
Republic Services (RSG)	13.2×
Copart (CPRT)	13.0×
United Rentals (URI)	12.9×
Stanley Black & Decker (SWK)	12.8×
Equifax (EFX)	12.7×
Textron (TXT)	12.4×
Northrop Grumman (NOC)	12.2×
Brady (BRC)	12.1×
United Parcel Service (UPS)	10.9×
Amentum Holdings (AMTM)	10.5×
FedEx (FDX)	10.5×
McGrath RentCorp (MGRC)	10.2×
Gartner (IT)	10.1×
ABM Industries (ABM)	10.0×
Delta Air Lines (DAL)	9.1×
United Airlines Holdings (UAL)	7.3×
Honeywell International (HON)	7.2×
Matthews International (MATW)	7.0×
Upwork (UPWK)	6.9×
Ferrovial (FER)	3.8×

EV/EBITDA for Southwest Airlines (LUV) 2008-2026

EV/EBITDA daily chart for Southwest Airlines (LUV)

Historical EV/EBITDA for Southwest Airlines (LUV) from 2002 to 2025

About EV/EBITDA at Southwest Airlines (LUV)

Southwest Airlines EV/EBITDA by Year

Southwest Airlines EV/EBITDA 2025: 10.8×

Southwest Airlines EV/EBITDA 2024: 7.8×

Southwest Airlines EV/EBITDA 2023: 6.2×

Southwest Airlines EV/EBITDA 2022: 7.2×

Southwest Airlines EV/EBITDA 2021: 7.3×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

EV/EBITDA for Southwest Airlines (LUV) 2008-2026

EV/EBITDA daily chart for Southwest Airlines (LUV)

Historical EV/EBITDA for Southwest Airlines (LUV) from 2002 to 2025

About EV/EBITDA at Southwest Airlines (LUV)

Southwest Airlines EV/EBITDA by Year

Southwest Airlines EV/EBITDA 2025: 10.8×

Southwest Airlines EV/EBITDA 2024: 7.8×

Southwest Airlines EV/EBITDA 2023: 6.2×

Southwest Airlines EV/EBITDA 2022: 7.2×

Southwest Airlines EV/EBITDA 2021: 7.3×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

Southwest Airlines (LUV) Key Financials

EV/EBITDA daily chart for Southwest Airlines (LUV)

Historical EV/EBITDA for Southwest Airlines (LUV) from 2002 to 2025

About EV/EBITDA at Southwest Airlines (LUV)

Southwest Airlines EV/EBITDA by Year

Southwest Airlines EV/EBITDA 2025: 10.8×

Southwest Airlines EV/EBITDA 2024: 7.8×

Southwest Airlines EV/EBITDA 2023: 6.2×

Southwest Airlines EV/EBITDA 2022: 7.2×

Southwest Airlines EV/EBITDA 2021: 7.3×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

What is Southwest Airlines's EV/EBITDA ratio?

How is the EV/EBITDA ratio calculated?

What is the EV/EBITDA ratio?

What is a good EV/EBITDA ratio for Southwest Airlines?

Is Southwest Airlines's EV/EBITDA ratio high or low?

What is Southwest Airlines's historical EV/EBITDA ratio range?

What was Southwest Airlines's EV/EBITDA ratio in 2025?

Why does Southwest Airlines's EV/EBITDA ratio change over time?

EV/EBITDA daily chart for Southwest Airlines (LUV)

Historical EV/EBITDA for Southwest Airlines (LUV) from 2002 to 2025

About EV/EBITDA at Southwest Airlines (LUV)

Southwest Airlines EV/EBITDA by Year

Southwest Airlines EV/EBITDA 2025: 10.8×

Southwest Airlines EV/EBITDA 2024: 7.8×

Southwest Airlines EV/EBITDA 2023: 6.2×

Southwest Airlines EV/EBITDA 2022: 7.2×

Southwest Airlines EV/EBITDA 2021: 7.3×

Sector peers by EV/EBITDA — chart

Sector peers by EV/EBITDA — table

Frequently asked questions

What is Southwest Airlines's EV/EBITDA ratio?

How is the EV/EBITDA ratio calculated?

What is the EV/EBITDA ratio?

What is a good EV/EBITDA ratio for Southwest Airlines?

Is Southwest Airlines's EV/EBITDA ratio high or low?

What is Southwest Airlines's historical EV/EBITDA ratio range?

What was Southwest Airlines's EV/EBITDA ratio in 2025?

Why does Southwest Airlines's EV/EBITDA ratio change over time?

Southwest Airlines (LUV) Key Financials