Southwest Airlines CoSTU:SWN -0.74%82 Cyclically Adjusted PB Ratio is 2.47 as of Jul. 11, 2026, which is 15% below its 10-year median of 2.90. GuruFocus rates STU:SWN with a GF Score™ of 82/100 and a GF Value™ of €36.79 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 738 Transportation companies, Southwest Airlines Co ranks worse than 76.02% on this metric.
The historical rank and industry rank for Southwest Airlines Co's Cyclically Adjusted PB Ratio or its related term are showing as below:
STU:SWN'
s Cyclically Adjusted PB Ratio Range Over the Past 10 Years
Min: 1.23 Med: 2.9 Max: 6.18
Current: 2.43
During the past years, Southwest Airlines Co's highest Cyclically Adjusted PB Ratio was 6.18. The lowest was 1.23. And the median was 2.90.
STU:SWN's Cyclically Adjusted PB Ratio is ranked worse than 76.02% of 738
companies
in the Transportation industry
Industry Median: 1.25
vs STU:SWN: 2.43
The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio. The Cyclically Adjusted Book per Share is the average of the inflation adjusted book value per share of a company over the past 10 years.
Southwest Airlines Co's adjusted book value per share data for the three months ended in Mar. 2026 was €12.110. Add all the adjusted book value per share for the past 10 years together and divide the count will get our Cyclically Adjusted Book per Share, which is €17.25 for the trailing ten years ended in Mar. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Southwest Airlines Co (STU:SWN) Cyclically Adjusted PB Ratio Explanation
Compared with the regular PB Ratio, which works poorly for cyclical businesses, the Cyclically Adjusted PB Ratio smoothed out the fluctuations of book value during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Cyclically Adjusted PB Ratio should give similar results to regular PB Ratio.
Southwest Airlines Co Cyclically Adjusted PB Ratio Related Terms
Southwest Airlines Co Cyclically Adjusted PB Ratio Historical Data
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The historical data trend for Southwest Airlines Co's Cyclically Adjusted PB Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Southwest Airlines Co Cyclically Adjusted PB Ratio Chart
STU:SWN vs AAL, UAL, CPA: Cyclically Adjusted PB Ratio Comparison
For the Airlines subindustry, Southwest Airlines Co's Cyclically Adjusted PB Ratio, along with its competitors' market caps and Cyclically Adjusted PB Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Southwest Airlines Co Cyclically Adjusted PB Ratio vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's Cyclically Adjusted PB Ratio distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's Cyclically Adjusted PB Ratio falls into.
Southwest Airlines Co Cyclically Adjusted PB Ratio Calculation
Like the Shiller PE Ratio, the Cyclically Adjusted PB Ratio takes the Book Value per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/B calculation. Because it considers this 10-year average, it's often referred to as the CAPB Ratio.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted PB Ratio.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
What does a Cyclically Adjusted PB Ratio of 2.47 mean?
Southwest Airlines Co (STU:SWN) has a Cyclically Adjusted PB Ratio of 2.47 as of Jul. 11, 2026. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Southwest Airlines Co and its competitors. This is 15% below median its historical median of 2.90. Over the past decade, Southwest Airlines Co's Cyclically Adjusted PB Ratio has ranged from 1.23 to 6.18. According to the industry distribution chart, Southwest Airlines Co ranks #561 out of 738 companies in the Transportation industry, placing it in the top 76%.
Is Southwest Airlines Co's Cyclically Adjusted PB Ratio too high?
Southwest Airlines Co's current Cyclically Adjusted PB Ratio of 2.47 is 15% below median its 10-year median of 2.90. Over the past 10 years, this metric has ranged from a low of 1.23 to a high of 6.18. The Transportation industry median Cyclically Adjusted PB Ratio is 1.25. Southwest Airlines Co's value of 2.47 is 97.6% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #561 out of 738 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Southwest Airlines Co has a GF Score™ of 82/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Cyclically Adjusted PB Ratio compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #561 out of 738 companies for Cyclically Adjusted PB Ratio. This places Southwest Airlines Co in the lower half of its industry. The industry median Cyclically Adjusted PB Ratio is 1.25. Southwest Airlines Co's value of 2.47 is 97.6% above this benchmark. Historically, Southwest Airlines Co's own Cyclically Adjusted PB Ratio has ranged from 1.23 to 6.18 over the past decade. While the company's 10-year median is 2.90 vs. the industry median of 1.25, Southwest Airlines Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cyclically Adjusted PB Ratio for a Transportation company?
The median Cyclically Adjusted PB Ratio among Transportation companies is 1.25, based on 738 companies in the industry. Companies in the top quartile (top 25%) have a Cyclically Adjusted PB Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cyclically Adjusted PB Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current Cyclically Adjusted PB Ratio of 2.47 is 97.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cyclically Adjusted PB Ratio mean?
A high Cyclically Adjusted PB Ratio can signal that a stock is expensive relative to its fundamentals. Cyclically Adjusted PB Ratio is the ratio of share price to a company's inflation-adjusted book value per share over a 10-year period. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median Cyclically Adjusted PB Ratio is 1.25 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current Cyclically Adjusted PB Ratio is 2.47, which is 15% below median its own 10-year median of 2.90. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Southwest Airlines Co stock overvalued right now?
Based on GuruFocus' analysis, Southwest Airlines Co (STU:SWN) is currently considered Modestly Overvalued. The stock's GF Value™ is €36.79, compared to a current price of €42.65 — trading 15.9% above its estimated fair value. The current Cyclically Adjusted PB Ratio is 2.47, which is 15% below median its 10-year median of 2.90 and 97.6% above the Transportation industry median of 1.25. Southwest Airlines Co's overall GF Score™ is 82/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cyclically Adjusted PB Ratio calculated?
Cyclically Adjusted PB Ratio is calculated from a company's financial statements. For Southwest Airlines Co (STU:SWN), the current Cyclically Adjusted PB Ratio is 2.47 as of Jul. 11, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Southwest Airlines Co (STU:SWN) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of €42.65 is trading 15.9% above its estimated GF Value™ of €36.79.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for STU:SWN:
Cyclically Adjusted PB Ratio: 2.47 (15% below median its 10-year median of 2.90)
GF Value™: €36.79 vs. price of €42.65 (15.9% above fair value)
Industry Position: 97.6% above the Transportation median (#561 of 738)
No single metric tells the full story. See the STU:SWN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated with a simple cabin configuration in a point-to-point network. In early 2026, Southwest modified its cabins to offer some rows with extra legroom, its ticketing process and merchandising to offer assigned seats, and more fare categories to include a basic economy class that appears for the first time in travel aggregators' search results and more directly competes with other airlines' offerings.
82GF Score
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