Southwest Airlines Co (FRA:SWN) Risk Assessment


FRA:SWN Southwest Airlines Co FRA:SWN
82 GF Score
Price €43.85
GF Value €36.23
Valuation Modestly Overvalued
! 6 Warning Signs
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What is Southwest Airlines Co Risk Assessment?

Risk Assessment represents the investment risk of a stock derived from our exclusive method. It suggests how risky the investment opportunity is based on the valuation and the fundamental performance of the stock. It is derived from following key aspects:

1. GuruFocus internally developed valuations of the stock, such as GF valuation.
2. Quality Rank, a business quality indicator developed by GuruFocus.
3. Fundamental performance: Piotroski F-Score, Altman Z-Score, Beneish M-Score, etc.
4. Growth opportunities: 5-year revenue growth rate, 5-Year EPS without NRI Growth Rate, etc.

Value investors are always willing to find undervalued stocks. However, not all the undervalued stocks are good deals, we should also be careful of how risky the investment opportunity is. We believe that if the company's financial strength and profitability are strong, and the stock price is within a reasonable range of the GF valuation, or stock has a high return with its price being undervalued, then it might be a good investment opportunity with low risk.

Based on those aspects listed above, GuruFocus believes the risk assessment of Southwest Airlines Co is: Moderate Risk: Sensitive, better choose undervalued stock.

Southwest Airlines Co  (FRA:SWN) Risk Assessment Explanation

Based on the four aspects listed above, GuruFocus provides the following 7 evaluations:

All-in-One Screener Examples (1)
Low Risk: Strong fundamentals, worth long-term holding
Moderate Risk: Sensitive, better choose undervalued stock
High Risk: High uncertainty with risk-return tradeoff
High Risk: Good fundamentals, beware of shrinking business
High Risk: Sensitive to economic or industry trends
High Risk: High uncertainty
No Data: Cannot be evaluated

(1) These are some simple examples. You can access our Risk Assessment filter under All-in-One Screener’s Fundamental tab and set your own criteria.

Southwest Airlines Co Risk Assessment Related Terms

FRA:SWN vs AAL, UAL, CPA: Risk Assessment Comparison

For the Airlines subindustry, Southwest Airlines Co's Risk Assessment, along with its competitors' market caps and Risk Assessment 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 Risk Assessment vs Transportation Industry

For the Transportation industry and Industrials sector, Southwest Airlines Co's Risk Assessment distribution charts can be found below:

* The bar in red indicates where Southwest Airlines Co's Risk Assessment falls into.


FRA:SWN
82GF Score
Southwest Airlines Co FRA:SWN
Risk Assessment is just one metric. See GF Score™, valuation, warning signs, and more.
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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 €43.85 is trading 21% above its estimated GF Value™ of €36.23. GuruFocus considers Southwest Airlines Co to be Modestly Overvalued.

Key valuation signals for FRA:SWN:

  • Risk Assessment:
  • GF Value™: €36.23 vs. price of €43.85 (21% above fair value)
  • GF Score™: 82/100 with 6 warning signs

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 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 FRA:SWN

Risk Assessment is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€43.85
Price
€36.23
GF Value