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 -0.74%82 EV-to-EBITDA is 10.17 as of Jul. 16, 2026, which is 43% above its 10-year median of 7.09. GuruFocus rates FRA:SWN with a GF Score™ of 82/100 and a GF Value™ of €35.14 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 902 Transportation companies, Southwest Airlines Co ranks worse than 58.76% on this metric.
EV-to-EBITDA is calculated as enterprise value divided by its EBITDA. As of today, Southwest Airlines Co's enterprise value is €23,832 Mil.
Southwest Airlines Co's EBITDA for the trailing twelve months (TTM) ended in Mar. 2026 was €2,343 Mil. Therefore, Southwest Airlines Co's EV-to-EBITDA for today is 10.17.
The historical rank and industry rank for Southwest Airlines Co's EV-to-EBITDA or its related term are showing as below:
FRA:SWN'
s EV-to-EBITDA Range Over the Past 10 Years
Min: -53.02 Med: 7.09 Max: 18.63
Current: 9.96
During the past 13 years, the highest EV-to-EBITDA of Southwest Airlines Co was 18.63. The lowest was -53.02. And the median was 7.09.
FRA:SWN's EV-to-EBITDA is ranked worse than 58.76% of 902
companies
in the Transportation industry
Industry Median: 8.69
vs FRA:SWN: 9.96
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio to determine the fair market value of a company.
The "classic" EV-to-EBITDA is much better in capturing debt and net cash than the PE Ratio (TTM).
Southwest Airlines Co (FRA:SWN) EV-to-EBITDA Explanation
EV-to-EBITDA is a valuation multiple used in finance and investment to measure the value of a company. This important multiple is often used in conjunction with, or as an alternative to, the PE Ratio (TTM) to determine the fair market value of a company.
Southwest Airlines Co's PE Ratio (TTM) for today is calculated as:
Southwest Airlines Co's share price for today is €41.36.
Southwest Airlines Co's Earnings per Share (Diluted) 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 €1.333.
* 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.
Study has found that the companies with the lowest EV-to-EBITDA outperforms companies measured as cheap by other ratios such as PE Ratio (TTM).
Southwest Airlines Co EV-to-EBITDA Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's EV-to-EBITDA 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.
For the Airlines subindustry, Southwest Airlines Co's EV-to-EBITDA, along with its competitors' market caps and EV-to-EBITDA 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-EBITDA vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's EV-to-EBITDA distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's EV-to-EBITDA falls into.
Southwest Airlines Co's current Enterprise Value is €23,832 Mil.
Southwest Airlines Co's EBITDA 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 €2,343 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-EBITDA of 10.17 as of Jul. 16, 2026. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Southwest Airlines Co. This is 43% above median its historical median of 7.09. According to the industry distribution chart, Southwest Airlines Co ranks #530 out of 902 companies in the Transportation industry, placing it in the top 58.8%.
Is Southwest Airlines Co's EV-to-EBITDA too high?
Southwest Airlines Co's current EV-to-EBITDA of 10.17 is 43% above median its 10-year median of 7.09. The Transportation industry median EV-to-EBITDA is 8.69. Southwest Airlines Co's value of 10.17 is 17% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #530 out of 902 companies in the Transportation industry, which is below the industry midpoint. 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-EBITDA compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #530 out of 902 companies for EV-to-EBITDA. This places Southwest Airlines Co in the lower half of its industry. The industry median EV-to-EBITDA is 8.69. Southwest Airlines Co's value of 10.17 is 17% above this benchmark. While the company's 10-year median is 7.09 vs. the industry median of 8.69, 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-EBITDA for a Transportation company?
The median EV-to-EBITDA among Transportation companies is 8.69, based on 902 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-EBITDA significantly above this median, while those in the bottom quartile fall well below. However, EV-to-EBITDA should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current EV-to-EBITDA of 10.17 is 17% 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-EBITDA mean?
A high EV-to-EBITDA can signal that a stock is expensive relative to its fundamentals. EV to EBITDA ratio is the company's enterprise value divided by earnings before interest, taxes, depreciation and amortization. View historical data on Southwest Airlines Co. For the Transportation industry, the median EV-to-EBITDA is 8.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current EV-to-EBITDA is 10.17, which is 43% above median its own 10-year median of 7.09. 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 €35.14, compared to a current price of €41.36 — trading 17.7% above its estimated fair value. The current EV-to-EBITDA is 10.17, which is 43% above median its 10-year median of 7.09 and 17% above the Transportation industry median of 8.69. Southwest Airlines Co's overall GF Score™ is 82/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-EBITDA calculated?
EV-to-EBITDA is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current EV-to-EBITDA is 10.17 as of Jul. 16, 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 €41.36 is trading 17.7% above its estimated GF Value™ of €35.14.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for FRA:SWN:
EV-to-EBITDA: 10.17 (43% above median its 10-year median of 7.09)
GF Value™: €35.14 vs. price of €41.36 (17.7% above fair value)
Industry Position: 17% above the Transportation median (#530 of 902)
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-EBITDA 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 
