Southwest Airlines Valuation
| 0L8F Stock | 34.75 0.08 0.23% |
At this time, the company appears to be overvalued. Southwest Airlines has a current Real Value of USD33.03 per share. The regular price of the company is USD34.75. Our model measures the value of Southwest Airlines from inspecting the company fundamentals such as Operating Margin of 0.04 %, return on equity of 0.0446, and Shares Owned By Institutions of 87.63 % as well as reviewing its technical indicators and probability of bankruptcy.
Enterprise Value 19.8 B | Price Sales 0.6853 | Trailing PE 0.3594 |
Overvalued
Today
Please note that Southwest Airlines' price fluctuation is very steady at this time. Calculation of the real value of Southwest Airlines is based on 3 months time horizon. Increasing Southwest Airlines' time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
The fair value of the Southwest stock is determined by what a typical buyer is willing to pay for full or partial control of Southwest Airlines Co. Since Southwest Airlines is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Southwest Stock. However, Southwest Airlines' intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 34.75 | Real 33.03 | Hype 34.79 |
The intrinsic value of Southwest Airlines' stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Southwest Airlines' stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Southwest Airlines Co helps investors to forecast how Southwest stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Southwest Airlines more accurately as focusing exclusively on Southwest Airlines' fundamentals will not take into account other important factors: Southwest Airlines Cash |
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Southwest Airlines Total Value Analysis
Southwest Airlines Co is presently projected to have takeover price of 19.82 B with market capitalization of 1.88 T, debt of 8.06 B, and cash on hands of . Please note that takeover price may be misleading and is a subject to mistakes in financial statements. We encourage investors to thoroughly investigate all of the Southwest Airlines fundamentals before making investing decisions based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
19.82 B | 1.88 T | 8.06 B |
Southwest Airlines Investor Information
About 88.0% of the company shares are owned by institutions such as pension funds. The company had not issued any dividends in recent years. Based on the key indicators related to Southwest Airlines' liquidity, profitability, solvency, and operating efficiency, Southwest Airlines Co is not in a good financial situation at this time. It has a very high probability of going through financial hardship in April.Southwest Airlines Asset Utilization
The concept of asset utilization usually refers to the revenue earned for every dollar of assets a company currently reports. The newest return on assets of Southwest implies not a very effective usage of assets in March.Southwest Airlines Ownership Allocation
Southwest Airlines shows a total of 562.31 Million outstanding shares. The majority of Southwest Airlines outstanding shares are owned by institutional holders. These institutional investors are usually referred to as non-private investors looking to take positions in Southwest Airlines to benefit from reduced commissions. Consequently, institutions are subject to a different set of regulations than regular investors in Southwest Airlines. Please pay attention to any change in the institutional holdings of Southwest Airlines Co as this could imply that something significant has changed or is about to change at the company. Please note that no matter how many assets the company owns, if the real value of the company is less than the current market value, you may not be able to make money on it.Southwest Airlines Profitability Analysis
The company reported the revenue of 27.48 B. Net Income was 465 M with profit before overhead, payroll, taxes, and interest of 5.86 B.About Southwest Airlines Valuation
The stock valuation mechanism determines Southwest Airlines' current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Southwest Airlines based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Southwest Airlines. We calculate exposure to Southwest Airlines's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Southwest Airlines's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 4.5 B | 3.5 B |
Southwest Airlines Quarterly Retained Earnings |
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Additional Tools for Southwest Stock Analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.