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Southwest Airlines CoSTU:SWN +1.86%83 EV-to-OCF is 10.38 as of Jul. 29, 2026, which is 34% above its 10-year median of 7.72. GuruFocus rates STU:SWN with a GF Score™ of 83/100 and a GF Value™ of €37.23 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,010 Transportation companies, Southwest Airlines Co ranks worse than 63.37% on this metric.
EV-to-OCF is calculated as enterprise value divided by its cash flow from operations. As of today, Southwest Airlines Co's Enterprise Value is €22,653 Mil.
Southwest Airlines Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was €2,183 Mil. Therefore, Southwest Airlines Co's EV-to-OCF for today is 10.38.
The historical rank and industry rank for Southwest Airlines Co's EV-to-OCF or its related term are showing as below:
STU:SWN'
s EV-to-OCF Range Over the Past 10 Years
Min: -356.34 Med: 7.72 Max: 89.09
Current: 10.18
During the past 13 years, the highest EV-to-OCF of Southwest Airlines Co was 89.09. The lowest was -356.34. And the median was 7.72.
STU:SWN's EV-to-OCF is ranked worse than 63.37% of 1010
companies
in the Transportation industry
Industry Median: 7.93
vs STU:SWN: 10.18
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 (STU:SWN) EV-to-OCF Explanation
EV-to-OCF is a valuation multiple that allows analysts and investors to compare stocks, preferably in the same sector or industry. 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 €40.63.
Southwest Airlines Co's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €1.403.
* 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.
Enterprise Value is used because it is a more complete measure in reflecting how much an investor pays when buying a company. Cash Flow from Operations is an important financial metric because it represents the cash generated from operating activities at a company's disposal. Companies with a low EV-to-OCF ratio, combined with a strong balance sheet are generally considered as undervalued.
* 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-OCF, along with its competitors' market caps and EV-to-OCF 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-OCF vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's EV-to-OCF distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's EV-to-OCF falls into.
Southwest Airlines Co's current Enterprise Value is €22,653 Mil.
Southwest Airlines Co's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €2,183 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 (STU:SWN) has a EV-to-OCF of 10.38 as of Jul. 29, 2026. This is 34% above median its historical median of 7.72. According to the industry distribution chart, Southwest Airlines Co ranks #640 out of 1010 companies in the Transportation industry, placing it in the top 63.4%.
Is Southwest Airlines Co's EV-to-OCF too high?
Southwest Airlines Co's current EV-to-OCF of 10.38 is 34% above median its 10-year median of 7.72. The Transportation industry median EV-to-OCF is 7.93. Southwest Airlines Co's value of 10.38 is 30.9% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #640 out of 1010 companies in the Transportation industry, which is below the industry midpoint. Overall, Southwest Airlines Co has a GF Score™ of 83/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's EV-to-OCF compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #640 out of 1010 companies for EV-to-OCF. This places Southwest Airlines Co in the lower half of its industry. The industry median EV-to-OCF is 7.93. Southwest Airlines Co's value of 10.38 is 30.9% above this benchmark. While the company's 10-year median is 7.72 vs. the industry median of 7.93, 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-OCF for a Transportation company?
The median EV-to-OCF among Transportation companies is 7.93, based on 1,010 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-OCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-OCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current EV-to-OCF of 10.38 is 30.9% 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-OCF mean?
A high EV-to-OCF can signal that a stock is expensive relative to its fundamentals. For the Transportation industry, the median EV-to-OCF is 7.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current EV-to-OCF is 10.38, which is 34% above median its own 10-year median of 7.72. 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 Fairly Valued. The stock's GF Value™ is €37.23, compared to a current price of €40.63 — trading 9.1% above its estimated fair value. The current EV-to-OCF is 10.38, which is 34% above median its 10-year median of 7.72 and 30.9% above the Transportation industry median of 7.93. Southwest Airlines Co's overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EV-to-OCF calculated?
EV-to-OCF is calculated from a company's financial statements. For Southwest Airlines Co (STU:SWN), the current EV-to-OCF is 10.38 as of Jul. 29, 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 €40.63 is trading 9.1% above its estimated GF Value™ of €37.23.
GuruFocus considers Southwest Airlines Co to be Fairly Valued.
Key valuation signals for STU:SWN:
EV-to-OCF: 10.38 (34% above median its 10-year median of 7.72)
GF Value™: €37.23 vs. price of €40.63 (9.1% above fair value)
Industry Position: 30.9% above the Transportation median (#640 of 1010)
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.
83GF Score
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