SOUTHWEST AIRLINES CO (LUV)

Air Transportation, Scheduled

Latest Price

$45.60

TTM P/E

28.86

Normalized P/E

46.06

Div Yield

1.58%

Book Value

14.34

P/B Ratio

3.18

Valuation metrics

EPS: $0.79

Book value / share: $14.30

Formula: √(22.5 × EPS × BVPS)

Graham Number

$15.94

65% downside

Norm. op. income: $428M (median of 7yr)

Tax rate: 24%

Discount rate: 10%

Growth assumption: zero (EPV is a no-growth value)

Earnings Power Value

$2.78

94% downside

Base FCF: $1.8B (median of recent 5yr)

Growth: 5%/yr (median YOY, capped at 25%)

Discount rate: 10%

Terminal growth: 3%

Projection horizon: 10 years

DCF Fair Value

$52.48

+15% upside

EPS: $0.79

Target P/E: 46×

Formula: EPS × P/E

P/E Fair Value

$36.34

20% downside

90.4% held by institutions

Institution	Shares	Value	Ownership %	Change	Filing Date
PRIMECAP MANAGEMENT CO/CA/	47.07M	$1.77B	9.53%	-322.6K	2026-03-31
FRANKLIN RESOURCES INC	44.39M	$1.67B	8.99%	+4.19M	2026-03-31
VANGUARD CAPITAL MANAGEMENT LLC	31.64M	$1.19B	6.41%	--	2026-03-31
Elliott Investment Management L.P.	30.35M	$1.14B	6.14%	-20.78M	2026-03-31
STATE STREET CORP	29.52M	$1.11B	5.98%	-1.70M	2026-03-31
BlackRock, Inc.	28.57M	$1.07B	5.78%	-678.1K	2026-03-31
VANGUARD PORTFOLIO MANAGEMENT LLC	23.13M	$868.0M	4.68%	--	2026-03-31
PRICE T ROWE ASSOCIATES INC /MD/	13.89M	$522.0M	2.81%	-3.27M	2026-03-31
GEODE CAPITAL MANAGEMENT, LLC	12.98M	$486.0M	2.63%	+83.8K	2026-03-31
AMERIPRISE FINANCIAL INC	9.98M	$375.0M	2.02%	+239.8K	2026-03-31