LUV Southwest Airlines Co.
Industrials
Price
$45.58
Intrinsic value
$33.20
Buy price
$26.56
Discount
-37.3%
DCF walkthrough
Near-term growth (g1)3.87%
Terminal growth (g2)3.50%
Years of g1 growth4
Discount rate9.00%
Margin of safety20.00%
- Operating CF
- $2,530,000,000.00
- Total debt
- $6,888,999,936.00
- Cash & STI
- $3,791,000,064.00
- Shares out.
- 493,000,000
Overvalued [LOW CF reliability]
Intrinsic value$33.20
Buy price (with MOS)$26.56
Current price$45.58
Discount to intrinsic value-37.3%
7-step quality scorecard
ROE quality
LOW- Average ROE
- 4.9%
- Current ROE
- 5.5%
- Minimum ROE
- 4.4%
Debt quality
MODERATE- Debt / Equity
- 0.86x
Moat proxy
WEAK_PROXYCash-flow reliability
LOW- Operating CF / Net income
- 3.02x
Technical chart
Confluence: MODERATE (2/3)Weekly candles, ~3 years. Yellow line: 10-week EMA. Dashed lines: Fibonacci retracement of the last 52-week swing. Green arrow: an active DR1 support reclaim.
Assumptions & data quality
- Data source
- yfinance
- Growth (g1) source
- revenueCAGR+decel_adj
- Valuation model
- DCF_OCF
- Debt as % of DCF PV
- 35.4%
- Public economic interest
- 100.0%
These are model outputs built on assumptions (growth rate, discount rate, margin of safety), not facts - trust but verify, especially for LOW cash-flow-reliability or UNKNOWN-quality rows.