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Southwest Airlines CoFRA:SWN -3.80%84 3-Year EBITDA Growth Rate is 2.60% as of Jun. 2026, which is at its 10-year median of 2.60. GuruFocus rates FRA:SWN with a GF Score™ of 84/100 and a GF Value™ of €38.40 (Fairly Valued). The stock has 2 warning signs investors should review. Among 866 Transportation companies, Southwest Airlines Co ranks worse than 54.39% on this metric.
During the past 12 months, Southwest Airlines Co's average EBITDA Per Share Growth Rate was 36.00% per year.
During the past 3 years, the average EBITDA Per Share Growth Rate was 2.60% per year.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
During the past 13 years, the highest 3-Year average EBITDA Per Share Growth Rate of Southwest Airlines Co was 46.30% per year. The lowest was -47.30% per year. And the median was 2.60% per year.
Southwest Airlines Co (FRA:SWN) 3-Year EBITDA Growth Rate Explanation
EBITDA per Share is the amount of Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) per outstanding share of the company's stock.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) is what the company earns before it expenses interest, taxes, depreciation and amortization.
Southwest Airlines Co 3-Year EBITDA Growth Rate Related Terms
FRA:SWN vs AAL, UAL, CPA: 3-Year EBITDA Growth Rate Comparison
For the Airlines subindustry, Southwest Airlines Co's 3-Year EBITDA Growth Rate, along with its competitors' market caps and 3-Year EBITDA Growth Rate 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 3-Year EBITDA Growth Rate vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's 3-Year EBITDA Growth Rate distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's 3-Year EBITDA Growth Rate falls into.
Southwest Airlines Co 3-Year EBITDA Growth Rate Calculation
This is the 3-year average growth rate of EBITDA per Share. The growth rate is calculated using exponential compounding based on the latest four year annual data.
Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the average EBITDA per share growth rate.
What does a 3-Year EBITDA Growth Rate of 2.60% mean?
Southwest Airlines Co (FRA:SWN) has a 3-Year EBITDA Growth Rate of 2.60% as of Jun. 2026. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Southwest Airlines Co and its competitors. This is near median its historical median of 2.60. According to the industry distribution chart, Southwest Airlines Co ranks #471 out of 866 companies in the Transportation industry, placing it in the top 54.4%.
Is Southwest Airlines Co's 3-Year EBITDA Growth Rate too high?
Southwest Airlines Co's current 3-Year EBITDA Growth Rate of 2.60% is near median its 10-year median of 2.60. The Transportation industry median 3-Year EBITDA Growth Rate is 4.95. Southwest Airlines Co's value of 2.60% is 47.5% below this industry median. Based on the distribution chart, Southwest Airlines Co ranks #471 out of 866 companies in the Transportation industry, which is below the industry midpoint. Overall, Southwest Airlines Co has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's 3-Year EBITDA Growth Rate compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #471 out of 866 companies for 3-Year EBITDA Growth Rate. This places Southwest Airlines Co in the lower half of its industry. The industry median 3-Year EBITDA Growth Rate is 4.95. Southwest Airlines Co's value of 2.60% is 47.5% below this benchmark. While the company's 10-year median is 2.60 vs. the industry median of 4.95, Southwest Airlines Co has consistently been below 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 3-Year EBITDA Growth Rate for a Transportation company?
The median 3-Year EBITDA Growth Rate among Transportation companies is 4.95, based on 866 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year EBITDA Growth Rate significantly above this median, while those in the bottom quartile fall well below. However, 3-Year EBITDA Growth Rate should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current 3-Year EBITDA Growth Rate of 2.60% is 47.5% below 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 3-Year EBITDA Growth Rate mean?
A high 3-Year EBITDA Growth Rate can signal that a stock is expensive relative to its fundamentals. 3-Year EBITDA Growth Rate is the 3-year average growth rate of EBITDA per share. View historical data for Southwest Airlines Co and its competitors. For the Transportation industry, the median 3-Year EBITDA Growth Rate is 4.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current 3-Year EBITDA Growth Rate is 2.60%, which is near median its own 10-year median of 2.60. 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 (FRA:SWN) is currently considered Fairly Valued. The stock's GF Value™ is €38.40, compared to a current price of €40.78 — trading 6.2% above its estimated fair value. The current 3-Year EBITDA Growth Rate is 2.60%, which is near median its 10-year median of 2.60 and 47.5% below the Transportation industry median of 4.95. Southwest Airlines Co's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year EBITDA Growth Rate calculated?
3-Year EBITDA Growth Rate is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current 3-Year EBITDA Growth Rate is 2.60% as of Jun. 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 (FRA:SWN) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of €40.78 is trading 6.2% above its estimated GF Value™ of €38.40.
GuruFocus considers Southwest Airlines Co to be Fairly Valued.
Key valuation signals for FRA:SWN:
3-Year EBITDA Growth Rate: 2.60% (near median its 10-year median of 2.60)
GF Value™: €38.40 vs. price of €40.78 (6.2% above fair value)
Industry Position: 47.5% below the Transportation median (#471 of 866)
No single metric tells the full story. See the FRA: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.
84GF Score
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