LUV

Southwest Airlines Co.

Industrials · $18.9B market cap

Verdict

Share price

$42.47

close of Oct 3, 2026

Fair value

$50.91

Sticker Price

Payback Price

$20.36

buy price

Undervalued

LUV is Undervalued: at $42.47 it trades 17% below its fair value of $50.91. Its buy price (Payback Price) is $20.36, 52% below today's price. Business quality is limited: only 1 of 5 key numbers clears the 10% bar.

How we valued it

Buffett Normalized. A profitable, growing business, so we project its earnings 10 years ahead and work out what that is worth today.

Business quality

1 of 5 clear the 10% bar. What are the Big Five?

Earnings per share growth5.1% a year✗
Equity per share growth5.9% a year✗
Sales growth4.9% a year✗
Free cash flow growth14.3% a year✓
Return on invested capital1.2%✗

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Superinvestors

2 of the investors we track hold LUV. In Q2 2026, 1 added and 1 trimmed. Who we track

Moves in Q2 2026

Added: Harry Burn

Trimmed: First Eagle Investment Management

Insider activity

Since Aug 5, 2026: no open-market purchases and 9 other filings (stock awards, tax withholding and similar). Why purchases matter

Other filings

About Southwest Airlines Co.

Southwest Airlines Co. functions as a passenger airline, offering scheduled air travel services predominantly across the United States and to select neighboring international markets. As of December 31, 2021, the company maintained a consistent fleet of 728 Boeing 737 aircraft. Its extensive route network served 121 different locations, spanning 42 U.S. states, the District of Columbia, and the Commonwealth of…

Airlines, Airports & Air Services

Fair value and Payback Price are estimates from the company's reported financials, not investment advice. Prices as of the close of Oct 3, 2026. How the Payback Price works