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Southwest Airlines Co (NYSE:LUV)
Price-to-Free-Cash-Flow Ratio
10.07 (As of Today)

As of today, Southwest Airlines Co's share price is $34.84. Southwest Airlines Co's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.46. Hence, Southwest Airlines Co's Price-to-Free-Cash-Flow Ratio for today is 10.07.

LUV' s 10-Year Price-to-Free-Cash-Flow ratio Range
Min: 2.92   Max: 237.86
Current: 10.07

2.92
237.86

During the past 13 years, Southwest Airlines Co's highest Price-to-Free-Cash-Flow Ratio was 237.86. The lowest was 2.92. And the median was 10.84.

LUV's Price-to-Free-Cash-Flow ratiois ranked higher than
94% of the 140 Companies
in the Global Airlines industry.

( Industry Median: 9999.00 vs. LUV: 10.07 )

Southwest Airlines Co's Free Cash Flow per Share for the three months ended in Jun. 2014 was $2.45. Its Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was $3.46.

During the past 12 months, the average Free Cash Flow per Share Growth Rate of Southwest Airlines Co was 170.30% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 16.60% per year.

During the past 13 years, Southwest Airlines Co's highest 3-Year average Free Cash Flow per Share Growth Rate was 278.00% per year. The lowest was 0.00% per year. And the median was -40.00% per year.


Definition

Southwest Airlines Co's Price-to-Free-Cash-Flow ratio for today is calculated as

Price-to-Free-Cash-Flow Ratio=Share Price/Free Cash Flow per Share (TTM)
=34.84/3.46
=10.07

Southwest Airlines Co's Share Price of today is $34.84.
Southwest Airlines Co's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2014 was 0.23 (Sep. 2013 ) + -0.23 (Dec. 2013 ) + 1.01 (Mar. 2014 ) + 2.45 (Jun. 2014 ) = $3.46.

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

It can also be calculated from the numbers for the whole company:

Price-to-Free-Cash-Flow Ratio=Market Cap/Free Cash Flow

Explanation

Free Cash Flow is considered more important than earnings by value investors. The reason is because, in principle, only the net cash that can be taken from the business belongs to shareholders. This Free Cash Flow can be used to grow the business, reduce debt or return to shareholders in dividends or share buybacks.

In a DCF Calculation Free Cash Flow is used to determine the intrinsic value of companies.


Be Aware

In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, management’s decision on expansion, etc. Therefore, investors should look at the Free Cash Flow over the longer term. Long-term average of Free Cash Flow is a more reliable indicator for real free cash flow.


Related Terms

Free Cash Flow, Free Cash Flow per Share, P/S Ratio, P/B Ratio, P/E Ratio


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Southwest Airlines Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
pfcf 0.0013.810.006.190.0021.179.1415.2911.1313.17

Southwest Airlines Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
pfcf 10.7023.648.0511.13112.3310.0710.1813.1712.977.84
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