Is Southwest Airlines Co. overvalued or undervalued?
2025-11-05 11:09:33As of 31 October 2025, the valuation grade for Southwest Airlines Co. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 38, which is significantly higher than peers such as Delta Air Lines, Inc. with a P/E of 10.73 and United Airlines Holdings, Inc. at 8.92. Additionally, the EV to EBITDA ratio stands at 11.42, further suggesting a premium compared to the industry average. In comparison to its peers, Southwest Airlines Co. has a PEG ratio of 0.77, which is more favorable than Delta's PEG of 10.73, but still reflects a concerning valuation given the overall context. The recent stock performance shows that Southwest Airlines has underperformed against the S&P 500, with a year-to-date return of -11.75% compared to the S&P 500's 16.30%, reinforcing the notion that the stock may be overvalued in the current market environment....
Read MoreIs Southwest Airlines Co. overvalued or undervalued?
2025-11-04 11:15:28As of 31 October 2025, the valuation grade for Southwest Airlines Co. moved from fair to expensive, indicating a shift towards overvaluation. The company is currently overvalued, with a P/E ratio of 38, a Price to Book Value of 3.10, and an EV to EBITDA of 11.42. In comparison, Delta Air Lines, Inc. has a P/E ratio of 10.73 and United Airlines Holdings, Inc. boasts a very attractive P/E of 8.92, highlighting that Southwest Airlines is trading at a significant premium relative to its peers. Recent performance metrics further reinforce this valuation perspective, as Southwest Airlines has underperformed against the S&P 500 across multiple time frames, including a year-to-date return of -9.49% compared to the S&P 500's 16.30%. This trend suggests that investors may be reassessing the stock's value in light of its current pricing and market performance....
Read MoreIs Southwest Airlines Co. overvalued or undervalued?
2025-11-03 11:14:40As of 31 October 2025, the valuation grade for Southwest Airlines Co. has moved from fair to expensive, indicating a shift towards overvaluation. The company appears overvalued based on its P/E ratio of 38, which is significantly higher than the industry average, and an EV to EBITDA ratio of 11.42, which also suggests a premium valuation compared to peers. Additionally, the PEG ratio stands at 0.77, indicating that the stock may not be justified by its growth prospects. In comparison to its peers, Delta Air Lines, Inc. has a fair valuation with a P/E of 10.73, while United Airlines Holdings, Inc. is rated very attractive with a P/E of 8.92. This stark contrast highlights the premium Southwest Airlines is trading at relative to its competitors. Furthermore, the company's stock has underperformed against the S&P 500 across multiple periods, with a year-to-date return of -9.88% compared to the S&P 500's 16.30...
Read MoreIs Southwest Airlines Co. overvalued or undervalued?
2025-11-02 11:08:07As of 31 October 2025, the valuation grade for Southwest Airlines Co. has moved from fair to expensive. This indicates that the company is currently overvalued. Key valuation ratios include a P/E ratio of 38, a Price to Book Value of 3.10, and an EV to EBITDA of 11.42. In comparison, Delta Air Lines, Inc. has a P/E of 10.73 and an EV to EBITDA of 6.39, while United Airlines Holdings, Inc. shows a very attractive P/E of 8.92 and an EV to EBITDA of 5.60, highlighting that Southwest Airlines is trading at a premium relative to its peers. Additionally, the stock has underperformed against the S&P 500, with a year-to-date return of -9.88% compared to the S&P 500's 16.30%. This performance further supports the conclusion that Southwest Airlines Co. is overvalued in the current market environment....
Read MoreIs Southwest Airlines Co. technically bullish or bearish?
2025-10-28 11:39:38As of 24 October 2025, the technical trend for Southwest Airlines Co. has changed from bullish to mildly bullish. The weekly MACD is mildly bearish, while the monthly MACD is mildly bullish, indicating mixed signals. The daily moving averages are mildly bullish, and both the weekly and monthly Dow Theory are also mildly bullish. However, the weekly Bollinger Bands are bearish, which adds some caution to the outlook. In terms of performance, the stock has underperformed the S&P 500 across multiple periods, with a year-to-date return of -4.22% compared to the S&P 500's 15.47%, and a 5-year return of -24.75% versus the S&P 500's 95.99%. Overall, the current stance is mildly bullish, but the stock's recent performance relative to the benchmark suggests caution....
Read MoreIs Southwest Airlines Co. technically bullish or bearish?
2025-10-27 11:50:44As of 24 October 2025, the technical trend for Southwest Airlines Co. has changed from bullish to mildly bullish. The weekly MACD is mildly bearish, while the monthly MACD is mildly bullish, indicating mixed signals across time frames. The daily moving averages are mildly bullish, and both the weekly and monthly Dow Theory are also mildly bullish. However, the weekly Bollinger Bands are bearish, which adds some caution to the outlook. In terms of performance, the stock has underperformed the S&P 500 across multiple periods, with a year-to-date return of -4.22% compared to the S&P 500's 15.47%, and a 5-year return of -24.75% versus the S&P 500's 95.99%. Overall, the current stance is mildly bullish, but the stock's performance relative to the benchmark suggests caution....
Read MoreIs Southwest Airlines Co. technically bullish or bearish?
2025-10-26 11:25:26As of 24 October 2025, the technical trend for Southwest Airlines Co. has changed from bullish to mildly bullish. The weekly MACD is mildly bearish, while the monthly MACD is mildly bullish, indicating mixed signals across time frames. The daily moving averages are mildly bullish, supporting a positive short-term outlook. However, the weekly Bollinger Bands are bearish, which adds some caution. The Dow Theory shows a mildly bullish stance in both weekly and monthly assessments, and the On-Balance Volume (OBV) is also mildly bullish, suggesting accumulation. In terms of performance, the stock has underperformed compared to the S&P 500 across multiple periods, with a year-to-date return of -4.22% versus the S&P 500's 15.47%, and a five-year return of -24.75% compared to the S&P 500's 95.99%. Overall, the current technical stance is mildly bullish, but the stock's performance relative to the benchmark raises ...
Read MoreIs Southwest Airlines Co. overvalued or undervalued?
2025-10-21 12:03:17As of 17 October 2025, the valuation grade for Southwest Airlines Co. has moved from fair to expensive, indicating that the stock is overvalued. The company exhibits a P/E ratio of 38, which is significantly higher than its peers, such as Delta Air Lines, Inc. at 10.73 and United Airlines Holdings, Inc. at 8.92. Additionally, the EV to EBITDA ratio stands at 11.42, while the PEG ratio is a more favorable 0.77, suggesting that growth expectations may not justify the current price level. In comparison to the S&P 500, Southwest Airlines has shown mixed performance, with a 1-year return of 11.40% compared to the index's 14.08%, and a stark underperformance over 3 and 5 years, with returns of 2.44% and -15.52%, respectively. This trend reinforces the notion that the stock may not be a compelling investment at its current valuation....
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Southwest Airlines Co. Experiences Valuation Adjustment Amidst Competitive Market Dynamics
2025-10-20 16:57:23Southwest Airlines Co. has adjusted its valuation, reflecting shifts in financial metrics and market standing. The airline's current price is $33.52, with key indicators including a P/E ratio of 38 and a PEG ratio of 0.77. Recent performance shows a strong 1-week return, though long-term returns lag behind the S&P 500.
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