Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Southwest Airlines CoFRA:SWN +0.80%82 EV-to-EBIT is 23.11 as of Jul. 15, 2026, which is 97% above its 10-year median of 11.73. GuruFocus rates FRA:SWN with a GF Score™ of 82/100 and a GF Value™ of €36.66 (Modestly Overvalued). The stock has 3 warning signs investors should review. Among 870 Transportation companies, Southwest Airlines Co ranks worse than 79.2% on this metric.
Southwest Airlines Co (FRA:SWN) EV-to-EBIT Explanation
This is a more accurate valuation of companies' operation because it considers the debt and cash on its balance sheet, and non-operating items such as interest payment, tax, and one-time items are not included in the Operating Income.
Southwest Airlines Co's Enterprise Value for the quarter that ended in Mar. 2026 was €18,511 Mil.
Southwest Airlines Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,000 Mil.
* 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.
* 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.
For the Airlines subindustry, Southwest Airlines Co's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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 EV-to-EBIT vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's EV-to-EBIT distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's EV-to-EBIT falls into.
Southwest Airlines Co's current Enterprise Value is €23,107 Mil.
Southwest Airlines Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1,000 Mil.
* 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 (FRA:SWN) has a EV-to-EBIT of 23.11 as of Jul. 15, 2026. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Southwest Airlines Co and its competitors. This is 97% above median its historical median of 11.73. According to the industry distribution chart, Southwest Airlines Co ranks #689 out of 870 companies in the Transportation industry, placing it in the top 79.2%.
Is Southwest Airlines Co's EV-to-EBIT too high?
Southwest Airlines Co's current EV-to-EBIT of 23.11 is 97% above median its 10-year median of 11.73. The Transportation industry median EV-to-EBIT is 12.35. Southwest Airlines Co's value of 23.11 is 87.2% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #689 out of 870 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 EV-to-EBIT compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #689 out of 870 companies for EV-to-EBIT. This places Southwest Airlines Co in the lower half of its industry. The industry median EV-to-EBIT is 12.35. Southwest Airlines Co's value of 23.11 is 87.2% above this benchmark. While the company's 10-year median is 11.73 vs. the industry median of 12.35, 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 EV-to-EBIT for a Transportation company?
The median EV-to-EBIT among Transportation companies is 12.35, based on 870 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBIT significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current EV-to-EBIT of 23.11 is 87.2% 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 EV-to-EBIT mean?
A high EV-to-EBIT can signal that a stock is expensive relative to its fundamentals. EV to EBIT ratio is the inverse of Joel Greenblatt's earnings yield definition. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median EV-to-EBIT is 12.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current EV-to-EBIT is 23.11, which is 97% above median its own 10-year median of 11.73. 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 Modestly Overvalued. The stock's GF Value™ is €36.66, compared to a current price of €41.67 — trading 13.7% above its estimated fair value. The current EV-to-EBIT is 23.11, which is 97% above median its 10-year median of 11.73 and 87.2% above the Transportation industry median of 12.35. 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 EV-to-EBIT calculated?
EV-to-EBIT is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current EV-to-EBIT is 23.11 as of Jul. 15, 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 €41.67 is trading 13.7% above its estimated GF Value™ of €36.66.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for FRA:SWN:
EV-to-EBIT: 23.11 (97% above median its 10-year median of 11.73)
GF Value™: €36.66 vs. price of €41.67 (13.7% above fair value)
Industry Position: 87.2% above the Transportation median (#689 of 870)
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.
82GF Score
Get the complete analysis for FRA:SWN
EV-to-EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:SWN has been successfully added to your 
