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LUV (Southwest Airlines Co) GF Value : $34.02 (As of Apr. 27, 2025)


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What is Southwest Airlines Co GF Value?

As of today (2025-04-27), Southwest Airlines Co's share price is $26.49. Southwest Airlines Co's GF Value is $34.02. Therefore, Southwest Airlines Co's Price-to-GF-Value for today is 0.78. Based on the relationship between the current stock price and the GF Value, GuruFocus believes Southwest Airlines Co is Modestly Undervalued.

The GF Value represents the intrinsic value of a stock, determined using GuruFocus' proprietary methodology. The GF Value Line on our stock Summary page provides an estimate of the stock’s fair-trading value.

To calculate this value, GuruFocus follows these steps:

  1. We analyze historical correlations between the stock price and key business performance metrics, such as revenue, earnings, cash flow, and book value.
  2. We identify the metrics that have the strongest historical correlation with the stock price and determine the historical multiples at which the stock has traded relative to these metrics.
  3. Using these historical multiples as a reference, we estimate the stock's fair value while accounting for future business growth. Adjustments may be made based on the company’s past returns and growth trends.

GuruFocus believes that the GF Value Line represents the fair value at which a stock should trade. Stock prices typically fluctuate around this line. If a stock’s price is significantly above the GF Value Line, it is considered overvalued, and its future returns are likely to be lower. Conversely, if the stock price is significantly below the GF Value Line, its future returns are likely to be higher.


Southwest Airlines Co  (NYSE:LUV) GF Value Explanation

Based on the relationship between the current stock price and the GF Value, GuruFocus provides the following 6 ratings:

Posssible Evaluations All-in-One Screener Examples (1)
Possible Value Trap, Think TwicePredictable Companies that possibly be Value Traps
Significantly OvervaluedPredictable Companies which are Significantly Overvalued
Modestly OvervaluedPredictable Companies which are Modestly Overvalued
Fairly ValuedPredictable High Quality Companies which are Fairly Valued
Modestly Undervalued (2)Predictable High Quality Companies which are Modestly Undervalued
Significantly Undervalued (2)Predictable High Quality Companies which are Significantly Undervalued

(1) These are some simple examples. You can access our GF Valuation filter under All-in-One Screener’s Fundamental tab, and Price-to-GF-Value filter under Valuation Ratio tab and set your own criteria.

(2) A sufficient margin of safety exists only when the stock is undervalued.


Possible Value Trap, Think Twice companies are those that appear significantly undervalued based on their Price-to-GF-Value ratio, but whose fundamentals show signs of weakness.

Indicators that a company may be a value trap include:

    * Deteriorating Financial Health: A low Altman Z-scores indicates a higher risk of bankruptcy, or a low Piotroski F-Score.
    * Earnings Manipulation: A high Beneish M-score indicates potential earnings manipulation, raising concerns about the reliability of reported financials.
    * Stagnant or Declining Growth: Lack of revenue or earnings growth, or a recent slowdown, may signal limited future prospects.

Investors should conduct thorough due diligence, examining financial statements and growth indicators, to avoid falling into value traps.


Southwest Airlines Co's Price-to-GF-Value for today is calculated as

Price-to-GF-Value=Share Price/GF Value
=26.49/34.02
=0.78

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Southwest Airlines Co GF Value Related Terms

Thank you for viewing the detailed overview of Southwest Airlines Co's GF Value provided by GuruFocus.com. Please click on the following links to see related term pages.


Southwest Airlines Co Business Description

Address
P.O. Box 36611, Dallas, TX, USA, 75235-1611
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated in a single, open-seating cabin configuration in a point-to-point network. In late 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process to offer assigned seats.
Executives
Christopher P. Reynolds director 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Linda B. Rutherford officer: EVP People and Communications 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Roy Blunt director 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Elaine Mendoza director 2223 POSTOAK COURT, SAN ANTONIO TX 78248
Eduardo F Conrado director 1303 E. ALGONQUIN ROAD, SCHAUMBURG IL 60196
Ryan C. Green officer: EVP, Chief Commercial Officer 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Jill A. Soltau director 123 SOUTH FRONT STREET, MEMPHIS TN 38103
John T Montford director C/O SOUTHWEST AIRLINES CO, 2702 LOVE FIELD DR PO BOX 36611, DALLAS TX 75235-1611
David P Hess director 390 PARK AVENUE, NEW YORK NY 10022
Thomas W. Gilligan director C/O KB HOME, 10990 WILSHIRE BOULEVARD, 7TH FLOOR, LOS ANGELES CA 90024
Robert E Jordan officer: EVP - Strategy and Planning C/O SOUTHWEST AIRLINES CO., 2702 LOVE FIELD DRIVE, DALLAS TX 75235
Gregory D Wells officer: EVP, Daily Operations 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Alan Kasher officer: EVP Daily Operations 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Mark R Shaw officer: SVP,Gen Counsel,Corp.Secretary 2702 LOVE FIELD DRIVE, HDQ 4GC, DALLAS TX 75235
Tammy Romo officer: SR VP Finance & CFO C/O SOUTHWEST AIRINES CO., 2702 LOVE FIELD DR., DALLAS TX 75235