Question 1

What is Southwest Airlines's P/E ratio?

Accepted Answer

Southwest Airlines (LUV) P/E ratio is 25.6× as of June 5, 2026. The ratio is calculated by dividing market capitalisation by trailing twelve-month earnings (net income), using USD-normalised financials (IAS 21 exchange-rate translation for non-USD reporters).

Question 2

How is the P/E ratio calculated?

Accepted Answer

P/E = Share Price ÷ Trailing Twelve-Month (TTM) Diluted EPS, or equivalently Market Capitalisation ÷ TTM Net Income. 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.

Question 3

What is the P/E ratio?

Accepted Answer

The price-to-earnings (P/E) ratio, also called the earnings multiple, measures how much investors pay per dollar of a company's trailing twelve-month (TTM) earnings. It is calculated as share price ÷ TTM diluted EPS (equivalent to market capitalisation ÷ TTM net income). A higher P/E implies the market is pricing in stronger future earnings growth or lower risk; a lower P/E can signal slower expected growth, higher risk, or potential undervaluation.

Question 4

What is a good P/E ratio for Southwest Airlines?

Accepted Answer

There is no universal "good" P/E. As a rule of thumb, the S&P 500 has historically averaged a P/E in the mid-to-high teens; mature, slow-growth businesses commonly trade in the 10–18× range, while high-growth or asset-light companies often trade at 25–50×+. What matters is the comparison to sector peers and to the company's own historical range. For Southwest Airlines specifically, the relevant sector benchmark is the current sector median of 27.8×.

Question 5

Is Southwest Airlines's P/E ratio high or low?

Accepted Answer

Southwest Airlines's P/E ratio of 25.6× is below its own 5-year average of 889.8× and below the sector median of 27.8×. That places the current reading at the 9th 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.

Question 6

What is Southwest Airlines's historical P/E ratio range?

Accepted Answer

In the available daily series, Southwest Airlines (LUV) P/E ratio has ranged from a low of 8.2× in 2018 to a high of 15851.8× in 2021. The 5-year average is 889.8× and the 5-year median is 37.1×.

Question 7

What was Southwest Airlines's P/E ratio in 2025?

Accepted Answer

Southwest Airlines (LUV) P/E ratio at the end of 2025 was 48.4×. Annual values reflect the multiple on the last trading day of each calendar year, using the trailing twelve-month earnings figure available at that date.

Question 8

Why does Southwest Airlines's P/E ratio change over time?

Accepted Answer

Valuation multiples move with two inputs: the numerator (market capitalisation, which tracks the share price) and the denominator (earnings). 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.


2025	$21.33B	$441.00M	48.4×	+5.2×	Dec 31, 2025
2024	$20.00B	$464.00M	43.1×	+6.1×	Dec 31, 2024
2023	$17.21B	$465.00M	37.0×	-0.1×	Dec 31, 2023
2022	$20.00B	$539.00M	37.1×	+11.2×	Dec 31, 2022
2021	$25.36B	$978.00M	25.9×	—	Dec 31, 2021
2020	$27.42B	−$3.07B	—	—	Dec 31, 2020
2019	$28.34B	$2.30B	12.3×	+1.8×	Dec 31, 2019
2018	$26.03B	$2.46B	10.6×	-0.5×	Dec 31, 2018
2017	$38.75B	$3.49B	11.1×	-2.6×	Dec 31, 2017
2016	$30.75B	$2.24B	13.7×	+0.9×	Dec 31, 2016
2015	$27.90B	$2.18B	12.8×	-12.4×	Dec 31, 2015
2014	$28.65B	$1.14B	25.2×	+7.8×	Dec 31, 2014
2013	$13.17B	$754.00M	17.5×	-0.5×	Dec 31, 2013
2012	$7.53B	$420.00M	17.9×	-19.2×	Dec 31, 2012
2011	$6.60B	$178.00M	37.1×	+15.9×	Dec 31, 2011
2010	$9.71B	$459.00M	21.2×	-115.5×	Dec 31, 2010
2009	$8.47B	$62.00M	136.6×	+101.1×	Dec 31, 2009
2008	$6.36B	$179.00M	35.5×	+21.7×	Dec 31, 2008
2007	$8.94B	$645.00M	13.9×	-10.1×	Dec 31, 2007
2006	$11.95B	$499.00M	24.0×	-0.1×	Dec 31, 2006
2005	$13.19B	$548.00M	24.1×	-16.4×	Dec 31, 2005
2004	$12.67B	$313.00M	40.5×	+12.8×	Dec 31, 2004
2003	$12.22B	$442.00M	27.6×	-17.2×	Dec 31, 2003
2002	$10.80B	$240.97M	44.8×	+17.1×	Dec 31, 2002
2001	$14.14B	$511.15M	27.7×	—	Dec 31, 2001


Lennox International (LII)	20.6×
Paychex (PAYX)	20.6×
Copart (CPRT)	20.4×
Otis Worldwide (OTIS)	20.2×
Union Pacific (UNP)	19.9×
Allegion (ALLE)	19.7×
Alamo Group (ALG)	19.6×
Carlisle Companies (CSL)	18.8×
Automatic Data Processing (ADP)	18.8×
Snap-on (SNA)	18.5×
Brady (BRC)	18.5×
Canadian National Railway (CNI)	18.4×
United Rentals (URI)	18.4×
Pool (POOL)	18.1×
McGrath RentCorp (MGRC)	17.5×
A. O. Smith (AOS)	17.4×
FedEx (FDX)	16.9×
Textron (TXT)	16.6×
United Parcel Service (UPS)	15.9×
ABM Industries (ABM)	15.2×
Gartner (IT)	14.9×
AGCO (AGCO)	10.9×
Delta Air Lines (DAL)	9.7×
United Airlines Holdings (UAL)	8.2×
Versant Media Group, Inc. Class A (VSNT)	6.3×

P/E Ratio for Southwest Airlines (LUV)

P/E Ratio daily chart for Southwest Airlines (LUV)

Historical P/E Ratio for Southwest Airlines (LUV) from 2001 to 2025

About P/E Ratio at Southwest Airlines (LUV)

Southwest Airlines P/E Ratio by Year

Southwest Airlines P/E Ratio 2025: 48.4×

Southwest Airlines P/E Ratio 2024: 43.1×

Southwest Airlines P/E Ratio 2023: 37.0×

Southwest Airlines P/E Ratio 2022: 37.1×

Southwest Airlines P/E Ratio 2021: 25.9×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

Southwest Airlines (LUV) Key Financials

P/E Ratio daily chart for Southwest Airlines (LUV)

Historical P/E Ratio for Southwest Airlines (LUV) from 2001 to 2025

About P/E Ratio at Southwest Airlines (LUV)

Southwest Airlines P/E Ratio by Year

Southwest Airlines P/E Ratio 2025: 48.4×

Southwest Airlines P/E Ratio 2024: 43.1×

Southwest Airlines P/E Ratio 2023: 37.0×

Southwest Airlines P/E Ratio 2022: 37.1×

Southwest Airlines P/E Ratio 2021: 25.9×

Sector peers by P/E Ratio — chart

Sector peers by P/E Ratio — table

Frequently asked questions

+What is Southwest Airlines's P/E ratio?

+How is the P/E ratio calculated?

+What is the P/E ratio?

+What is a good P/E ratio for Southwest Airlines?

+Is Southwest Airlines's P/E ratio high or low?

+What is Southwest Airlines's historical P/E ratio range?

+What was Southwest Airlines's P/E ratio in 2025?

+Why does Southwest Airlines's P/E ratio change over time?

Southwest Airlines (LUV) Key Financials