LUV (Southwest Airlines Co) Margin of Safety % (DCF Earnings Based): N/A (As of Jun. 25, 2026)


LUV Southwest Airlines Co LUV
82 GF Score
Price $50.94
GF Value $41.23
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Southwest Airlines Co Margin of Safety % (DCF Earnings Based)?

Margin of Safety % (DCF Earnings Based) = (Intrinsic Value: DCF (Earnings Based) - Current Price) / Intrinsic Value: DCF (Earnings Based).

Note: Discounted Earnings model is only suitable for predictable companies (Business Predictability Rank higher than 1-Star). If the company's Predictability Rank is 1-Star or Not Rated, result may not be accurate due to the low predictability of business and the data will not be stored into our database.

Southwest Airlines Co's Predictability Rank is 1-Star. Thus, the DCF related results in the screener and portfolio will appear as zero and Margin of Safety % (DCF Earnings Based) is not calculated.

LUV vs AAL, CPA, ALK: Margin of Safety % (DCF Earnings Based) Comparison

For the Airlines subindustry, Southwest Airlines Co's Margin of Safety % (DCF Earnings Based), along with its competitors' market caps and Margin of Safety % (DCF Earnings Based) 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 Margin of Safety % (DCF Earnings Based) vs Transportation Industry

For the Transportation industry and Industrials sector, Southwest Airlines Co's Margin of Safety % (DCF Earnings Based) distribution charts can be found below:

* The bar in red indicates where Southwest Airlines Co's Margin of Safety % (DCF Earnings Based) falls into.


LUV
82GF Score
Southwest Airlines Co LUV
Margin of Safety % (DCF Earnings Based) is just one metric. See GF Score™, valuation, warning signs, and more.
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Is Southwest Airlines Co (LUV) Overvalued in 2026?

Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued. The current stock price of $50.94 is trading 23.6% above its estimated GF Value™ of $41.23. GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.

Key valuation signals for LUV:

  • Margin of Safety % (DCF Earnings Based): N/A
  • GF Value™: $41.23 vs. price of $50.94 (23.6% above fair value)
  • GF Score™: 82/100 with 6 warning signs

No single metric tells the full story. See the LUV stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Southwest Airlines Co Business Description

Address P.O. Box 36611, Dallas, TX, USA, 75235-1611
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 LUV

Margin of Safety % (DCF Earnings Based) is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$50.94
Price
$41.23
GF Value