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Intrinsic value of Southwest Airlines Co. (LUV)

Previous Close$42.65
Intrinsic Value
Upside potential
Previous Close
$42.65

VALUATION INPUT DATA

Revenue, mln $
Initial revenue growth rate (norm.), %
Variable cost ratio, %
Fixed operating expenses, mln $
Production assets / Revenue, %
Working capital / Revenue, %
Interest rate on debt, %
Initial discount rate, %
Shares outstanding, mln
Adjusted equity ratio
Adjusted assets / Revenue
Cash & ST Investments
Total debt
Market cap, m$
25,253

Based on fiscal year data as of 2021-12-31 and quarterly data as of 2022-03-31.

  1. Annual
  2. Quarterly YoY
  3. Quarterly QoQ

Annual revenue growth rates, % (past and forecasted)

NOTE: The bar chart shows historic and forecasted yearly revenue growth rates. Its purpose is to help you in determining what initial revenue rate you want to base your stock valuation on. Please make sure that you are confident in the value you select - for most stocks it is by far the most important parameter in valuation.

show cash flow forecast

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year2021(a)2022202320242025202620272028202920302031203220332034203520362037203820392040204120422043204420452046

INCOME STATEMENT

Revenue growth rate, %74.5NaN
Revenue, $15790NaN
Variable operating expenses, $mNaN
Fixed operating expenses, $mNaN
Total operating expenses, $m14069NaN
Operating income, $m1721NaN
EBITDA, $m2993NaN
Interest expense (income), $mNaN
Earnings before tax, $m1325NaN
Tax expense, $m348NaN
Net income, $m977NaN

BALANCE SHEET

Cash and short-term investments, $m15504NaN
Total assets, $m38166NaN
Adjusted assets (=assets-cash), $m22662NaN
Average production assets, $m18343NaN
Working capital, $m8872NaN
Total debt, $m12281NaN
Total liabilities, $m27752NaN
Total equity, $m10414NaN
Debt-to-equity ratio1.179NaN
Adjusted equity ratio-0.194NaN

CASH FLOW

Net income, $m977NaN
Depreciation, amort., depletion, $m1272NaN
Funds from operations, $mNaN
Change in working capital, $mNaN
Cash from operations, $m2322NaN
Maintenance CAPEX, $mNaN
New CAPEX, $mNaN
Total CAPEX, $m-505NaN
Free cash flow, $m2827NaN
Issuance/(repurchase) of shares, $mNaN
Retained Cash Flow, $mNaN
Pot'l extraordinary dividend, $m8872
Cash available for distribution, $mNaN
Discount rate, %NaN
PV of cash for distribution, $mNaN
Current shareholders' claim on cash, %NaN
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