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As of today, Southwest Airlines Co's share price is $36.45. Southwest Airlines Co's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2016 was $2.88. Hence, Southwest Airlines Co's Price-to-Free-Cash-Flow Ratio for today is 12.66.
During the past 13 years, Southwest Airlines Co's highest Price-to-Free-Cash-Flow Ratio was 465.41. The lowest was 2.94. And the median was 13.54.
During the past 12 months, the average Free Cash Flow per Share Growth Rate of Southwest Airlines Co was 245.60% per year. During the past 3 years, the average Free Cash Flow per Share Growth Rate was 20.10% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 13.60% per year.
During the past 13 years, Southwest Airlines Co's highest 3-Year average Free Cash Flow per Share Growth Rate was 291.50% per year. The lowest was -57.90% per year. And the median was 10.10% per year.
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)|
Southwest Airlines Co's Share Price of today is $36.45.
Southwest Airlines Co's Free Cash Flow per Share for the trailing twelve months (TTM) ended in Jun. 2016 was 0.866 (Sep. 2015 ) + -0.765 (Dec. 2015 ) + 1.801 (Mar. 2016 ) + 0.977 (Jun. 2016 ) = $2.88.
It can also be calculated from the numbers for the whole company:
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.
In real business, Free Cash Flow can be affected by the change in accounts receivable, accounts payable, managements 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.
Southwest Airlines Co Annual Data
Southwest Airlines Co Quarterly Data