Think of Enterprise Value as the theoretical takeover price. It is more comprehensive than market capitalization (Market Cap), which only includes common equity. Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
EV-to-EBIT is calculated as Enterprise Value divided by its EBIT. As of today, Southwest Airlines Co's Enterprise Value is $20,526 Mil.
Southwest Airlines Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2025 was $895 Mil. Therefore, Southwest Airlines Co's EV-to-EBIT ratio for today is 22.93.
EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA. As of today, Southwest Airlines Co's Enterprise Value is $20,526 Mil.
Southwest Airlines Co's EBITDA for the trailing twelve months (TTM) ended in Mar. 2025 was $2,540 Mil. Therefore, Southwest Airlines Co's EV-to-EBITDA ratio for today is 8.08.
*** Please note that the current Enterprise Value is calculated using the current market capitalization and the most recently available financial data. If key financial fields—Long-Term Debt & Capital Lease Obligation and Short-Term Debt & Capital Lease Obligation—are recorded as null in the latest reporting period, our data vendor will default to using data from the prior period with valid entries.
Southwest Airlines Co Enterprise Value Historical Data
The historical data trend for Southwest Airlines Co's Enterprise Value 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.
Competitive Comparison of Southwest Airlines Co's Enterprise Value
For the Airlines subindustry, Southwest Airlines Co's Enterprise Value, along with its competitors' market caps and Enterprise Value 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's Enterprise Value Distribution in the Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's Enterprise Value distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's Enterprise Value falls into.
Southwest Airlines Co Enterprise Value Calculation
Enterprise Value is calculated as the market cap plus debt and minority interest and preferred shares, minus total cash, cash equivalents, and marketable securities.
Southwest Airlines Co's Enterprise Value for the fiscal year that ended in Dec. 2024 is calculated as
* 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 (NYSE:LUV) Enterprise Value Explanation
When an investor buy a company, the investor needs to pay not only the common shares, he/she also needs to pay the shareholders of Preferred Stocks. He also assumes the debt of the company, and receives the cash on the company's balance sheet.
If a company has more cash than debt, the investor actually pays less than the Market Cap because he immediately owns the cash once the transaction goes through.
The market value of Preferred Stock needs to be added to the market value of common stocks in the calculation of Enterprise Value.
For the companies with the same Market Cap, the smaller the Enterprise Value is, the cheaper the company is.
Enterprise Value can be negative when the company's net cash is more than its Market Cap. In this case the investor is basically getting the company for free and get paid for that.
1. EV-to-EBIT is calculated as Enterprise Value divided by its EBIT.
Southwest Airlines Co's current Enterprise Value is $20,526 Mil.
Southwest Airlines Co's EBIT for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $895 Mil.
2. EV-to-EBITDA is calculated as Enterprise Value divided by its EBITDA.
Southwest Airlines Co's EV-to-EBITDA for today is:
Southwest Airlines Co's current Enterprise Value is $20,526 Mil.
Southwest Airlines Co's EBITDA for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $2,540 Mil.
Southwest Airlines Co's current Enterprise Value is $20,526 Mil.
Southwest Airlines Co's Revenue for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $27,582 Mil.
Southwest Airlines Co's current Enterprise Value is $20,526 Mil.
Southwest Airlines Co's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was $-562 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 Enterprise Value Related Terms
Thank you for viewing the detailed overview of Southwest Airlines Co's Enterprise Value provided by GuruFocus.com. Please click on the following links to see related term pages.
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 in a single, open-seating cabin configuration in a point-to-point network. In late 2025, Southwest will modify its cabins to offer some seats with extra legroom and will update its ticketing process and merchandising to offer assigned seats and more fare categories including a basic economy class that will more directly compete with other airlines' offerings.
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