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Intrinsic value of Southwest Airlines Co. (LUV)

Previous Close$40.08
Intrinsic Value
Upside potential
Previous Close
$40.08

VALUATION INPUT DATA (original, your and others' valuations)

ParameterOrig.Your
Date of valuation (DoV)  
Intrinsic value (IV) at DoV, $/sh  
IV at current val. algorithm, $/sh24.01 

The original valuation is based on fiscal year data as of 2021-12-31 and quarterly data as of 2022-09-30.

Registered users can save their valuation input data

  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.

Company description

Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the United States and near-international markets. As of December 31, 2021, the company operated a total fleet of 728 Boeing 737 aircrafts; and served 121 destinations in 42 states, the District of Columbia, and the Commonwealth of Puerto Rico, as well as 10 near-international countries, including Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. It also provides inflight entertainment and connectivity services on Wi-Fi enabled aircrafts; and Rapid Rewards loyalty program that enables program members to earn points for dollars spent on Southwest base fares. In addition, the company offers a suite of digital platforms to support customers' travel needs, including websites and apps; and SWABIZ, an online booking tool. Further, it provides ancillary services, such as Southwest's EarlyBird Check-In, upgraded boarding, and transportation of pets and unaccompanied minors. The company was incorporated in 1967 and is headquartered in Dallas, Texas.

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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