Southwest Airlines Co.Opportunity Rank #48(LUV) Intrinsic Value & DCF Analysis (2026)
Current Price
$44.71
Last updated: Jul 24, 2026
Price vs Intrinsic Value
Fundamental Score
Weighted across 6 signals
Narrative Score
No change vs previous
Trend Score
As of 2026-07-24
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The intrinsic value of Southwest Airlines Co. (LUV) is estimated at $170.29 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $44.71, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.05% long-term growth rate and a 9.00% discount rate (calculated: 7.98%), reflecting expected future free cash flow and cost of capital.
The intrinsic value of Southwest Airlines Co. (LUV) is estimated at $170.29 per share based on a 10-year discounted cash flow (DCF) analysis. At the current price of $44.71, the stock appears undervalued relative to its projected cash flow fundamentals. This estimate assumes a 3.05% long-term growth rate and a 9.00% discount rate (calculated: 7.98%), reflecting expected future free cash flow and cost of capital.Valuation Details
Capital Efficiency
The company is earning below its required return. This may indicate inefficient use of capital or excess cash that isn't being reinvested.
Fundamental Details
Narrative Details
Trend Details
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- Monitor whether valuation discount remains above 10%.
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Free Cash Flow (in millions)
How Intrinziq Estimates Fair Value
Intrinziq estimates Southwest Airlines Co.'s intrinsic value using a discounted cash flow (DCF) model based on free cash flow trends and a market-based discount rate. The model projects future cash flows over ten years and discounts them using a market return assumption to estimate fair value.
Southwest Airlines Co.Industrials
Southwest Airlines Co. functions as a passenger airline, offering scheduled air travel services predominantly across the United States and to select neighboring international markets. As of December 31, 2021, the company maintained a consistent fleet of 728 Boeing 737 aircraft. Its extensive route network served 121 different locations, spanning 42 U.S. states, the District of Columbia, and the Commonwealth of Puerto Rico, along with 10 international countries close by. These international destinations include Mexico, Jamaica, the Bahamas, Aruba, the Dominican Republic, Costa Rica, Belize, Cuba, the Cayman Islands, and Turks and Caicos. To enhance the passenger journey, Southwest provides in-flight entertainment and internet access on its Wi-Fi-enabled planes. The airline also runs the Rapid Rewards loyalty program, enabling members to accumulate points proportional to the money spent on Southwest's base fares. For customer convenience in travel planning, the company offers a range of digital tools, including its official websites and mobile applications, as well as SWABIZ, a dedicated online booking platform for business clients. Additional services available include EarlyBird Check-In, preferred boarding options, and transportation for pets and unaccompanied minors. The company was founded in 1967 and its corporate headquarters are situated in Dallas, Texas.