LUV Southwest Airlines
Intrinsic value$19.16
Price (at call)$39.89
Margin of safety
-52.0%
vs market (rating basis)
-4.0%
Model unavailable; showing baseline valuation.
⚠ LLM error: empty response; using baseline
The story
Value drivers
| Revenue growth (Y1) | 5.6% |
| Terminal growth | 3.5% |
| Forecast horizon | 10y |
| Target operating margin | 4.0% |
| Years to target margin | 5 |
| Sales-to-capital | 2.33 |
| Beta | 1.14 |
| Failure probability | 0.0% |
| Cost of capital (WACC) | 8.8% |
| Terminal WACC | 8.3% |
Valuation bridge
| PV of explicit FCFF | 3.13B |
| PV of terminal value | 7.92B |
| Equity value | 9.37B |
| ÷ shares → per share | $19.16 |
News
score · 8 articles
- JetBlue Stock Sinks After Downgrade Flags Iran Conflict Risks
- Update: Equities Fall, Oil Rallies as US-Iran Ceasefire Expires
- Update: Equity Markets Fall Intraday, Oil Rises Amid Middle East Tensions
- JetBlue Balance Sheet Risks Could Grow as Hormuz Reopening Hopes Dim, Seaport Says in Downgrade
- The Boeing Company (BA) vs. Southwest Airlines Co. (LUV): A Long-Delayed Plane Finally Clears the Runway
- Southwest Airlines will let you bring along a friend for just $5 — but the offer won't last long. How to take advantage
- Airlines Push Back Against ICE Enforcement at Airports
- Boeing’s Smallest 737 Max Finally Wins FAA Certification After a Decade of Delays— but Passengers Still Won’t Board One Until 2027
Projected free cash flow to the firm
| Yr | Revenue | Growth | Margin | NOPAT | Reinvest | FCFF | PV |
|---|---|---|---|---|---|---|---|
| 1 | 31.76B | 5.6% | 4.0% | 1.00B | 724.63M | 279.79M | 257.07M |
| 2 | 33.48B | 5.4% | 4.0% | 1.06B | 733.26M | 325.29M | 274.60M |
| 3 | 35.20B | 5.2% | 4.0% | 1.11B | 738.92M | 374.18M | 290.22M |
| 4 | 36.93B | 4.9% | 4.0% | 1.17B | 741.39M | 426.44M | 303.89M |
| 5 | 38.66B | 4.7% | 4.0% | 1.22B | 740.48M | 482.00M | 315.60M |
| 6 | 40.38B | 4.4% | 4.0% | 1.28B | 736.04M | 540.78M | 325.33M |
| 7 | 42.08B | 4.2% | 4.0% | 1.33B | 727.91M | 602.64M | 333.10M |
| 8 | 43.75B | 4.0% | 4.0% | 1.38B | 715.98M | 667.42M | 338.95M |
| 9 | 45.38B | 3.7% | 4.0% | 1.44B | 700.17M | 734.92M | 342.92M |
| 10 | 46.97B | 3.5% | 4.0% | 1.49B | 680.43M | 804.89M | 345.07M |