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EV-to-FCF is calculated as enterprise value divided by its free cash flow. As of today, Southwest Airlines Co's Enterprise Value is R$139,834 Mil.
Southwest Airlines Co's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 was R$-2,351 Mil. Therefore, Southwest Airlines Co's EV-to-FCF for today is -59.49.
The historical rank and industry rank for Southwest Airlines Co's EV-to-FCF or its related term are showing as below:
BSP:S1OU34'
s EV-to-FCF Range Over the Past 10 Years
Min: -132.61 Med: 9.82 Max: 46.34
Current: -66.06
During the past 13 years, the highest EV-to-FCF of Southwest Airlines Co was 46.34. The lowest was -132.61. And the median was 9.82.
BSP:S1OU34's EV-to-FCF is ranked worse than 100% of 673
companies
in the Transportation industry
Industry Median: 14.21
vs BSP:S1OU34: -66.06
EV-to-FCF 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 (BSP:S1OU34) EV-to-FCF Explanation
EV-to-FCF 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 R$253.77.
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 R$8.380.
* 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. Free Cash Flow is an important financial metric because it represents the actual amount of cash at a company's disposal. Companies with a low EV-to-FCF 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-FCF, along with its competitors' market caps and EV-to-FCF 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-FCF vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's EV-to-FCF distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's EV-to-FCF falls into.
Southwest Airlines Co's current Enterprise Value is R$139,834 Mil.
Southwest Airlines Co's Free Cash Flow for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was R$-2,351 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 (BSP:S1OU34) has a EV-to-FCF of -59.49 as of Jul. 14, 2026. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Southwest Airlines Co and its competitors. According to the industry distribution chart, Southwest Airlines Co ranks #999999 out of 673 companies in the Transportation industry.
Is Southwest Airlines Co's EV-to-FCF too high?
Southwest Airlines Co's current EV-to-FCF is -59.49. Based on the distribution chart, Southwest Airlines Co ranks #999999 out of 673 companies in the Transportation industry, which is in the bottom quartile relative to peers. Overall, Southwest Airlines Co has a GF Score™ of 78/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's EV-to-FCF compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #999999 out of 673 companies for EV-to-FCF. This places Southwest Airlines Co in the lower half of its industry. The industry median EV-to-FCF is 14.21. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EV-to-FCF for a Transportation company?
The median EV-to-FCF among Transportation companies is 14.21, based on 673 companies in the industry. Companies in the top quartile (top 25%) have a EV-to-FCF significantly above this median, while those in the bottom quartile fall well below. However, EV-to-FCF should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EV-to-FCF mean?
A high EV-to-FCF can signal that a stock is expensive relative to its fundamentals. EV to FCF ratio is the company's enterprise value divided by free cash flow. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median EV-to-FCF is 14.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current EV-to-FCF is -59.49. 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 (BSP:S1OU34) is currently considered Modestly Overvalued. The stock's GF Value™ is R$221.57, compared to a current price of R$253.77 — trading 14.5% above its estimated fair value. The current EV-to-FCF is -59.49. Southwest Airlines Co's overall GF Score™ is 78/100 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-FCF calculated?
EV-to-FCF is calculated from a company's financial statements. For Southwest Airlines Co (BSP:S1OU34), the current EV-to-FCF is -59.49 as of Jul. 14, 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 (BSP:S1OU34) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of R$253.77 is trading 14.5% above its estimated GF Value™ of R$221.57.
GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.
Key valuation signals for BSP:S1OU34:
EV-to-FCF: -59.49
GF Value™: R$221.57 vs. price of R$253.77 (14.5% above fair value)
No single metric tells the full story. See the BSP:S1OU34 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.
78GF Score
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