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Southwest Airlines CoFRA:SWN -0.46%85 Shiller PE Ratio is 21.55 as of Aug. 15, 2026, which is 12% above its 10-year median of 19.31. GuruFocus rates FRA:SWN with a GF Score™ of 85/100 and a GF Value™ of €37.67 (Fairly Valued). The stock has 2 warning signs investors should review. Among 601 Transportation companies, Southwest Airlines Co ranks worse than 60.07% on this metric.
The historical rank and industry rank for Southwest Airlines Co's Shiller PE Ratio or its related term are showing as below:
FRA:SWN'
s Shiller PE Ratio Range Over the Past 10 Years
Min: 8.43 Med: 19.31 Max: 47.27
Current: 21.45
During the past years, Southwest Airlines Co's highest Shiller PE Ratio was 47.27. The lowest was 8.43. And the median was 19.31.
FRA:SWN's Shiller PE Ratio is ranked worse than 60.07% of 601
companies
in the Transportation industry
Industry Median: 18.57
vs FRA:SWN: 21.45
E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.
Southwest Airlines Co's adjusted earnings per share data for the three months ended in Jun. 2026 was €0.408. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is €1.80 for the trailing ten years ended in Jun. 2026.
Shiller PE for Stocks: The True Measure of Stock Valuation
Southwest Airlines Co (FRA:SWN) Shiller PE Ratio Explanation
Compared with the regular PE Ratio, which works poorly for cyclical businesses, the Shiller PE Ratio smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.
If a company has consistent business performance, the Shiller PE Ratio should give similar results to regular PE Ratio.
Compared with the PS Ratio, the Shiller PE Ratio makes the comparison between different industries more meaningful.
Be Aware
Shiller PE Ratio assumes that over the long term, businesses and profitability revert to their means. If a company's business model does not work in the future compared with the past, Shiller PE Ratio and PS Ratio will give false valuations.
Southwest Airlines Co Shiller PE Ratio Related Terms
Southwest Airlines Co Shiller PE Ratio Historical Data
* Premium members only.
The historical data trend for Southwest Airlines Co's Shiller PE Ratio 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.
FRA:SWN vs AAL, UAL, CPA: Shiller PE Ratio Comparison
For the Airlines subindustry, Southwest Airlines Co's Shiller PE Ratio, along with its competitors' market caps and Shiller PE Ratio 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 Shiller PE Ratio vs Transportation Industry
For the Transportation industry and Industrials sector, Southwest Airlines Co's Shiller PE Ratio distribution charts can be found below:
* The bar in red indicates where Southwest Airlines Co's Shiller PE Ratio falls into.
Southwest Airlines Co Shiller PE Ratio Calculation
For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller PE Ratio is also called PE10.
The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.
* 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.
Add all the adjusted EPS together and divide 10 will get our E10.
Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.
Southwest Airlines Co (FRA:SWN) has a Shiller PE Ratio of 21.55 as of Aug. 15, 2026. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Southwest Airlines Co and its competitors. This is 12% above median its historical median of 19.31. Over the past decade, Southwest Airlines Co's Shiller PE Ratio has ranged from 8.43 to 47.27. According to the industry distribution chart, Southwest Airlines Co ranks #361 out of 601 companies in the Transportation industry, placing it in the top 60.1%.
Is Southwest Airlines Co's Shiller PE Ratio too high?
Southwest Airlines Co's current Shiller PE Ratio of 21.55 is 12% above median its 10-year median of 19.31. Over the past 10 years, this metric has ranged from a low of 8.43 to a high of 47.27. The Transportation industry median Shiller PE Ratio is 18.57. Southwest Airlines Co's value of 21.55 is 16% above this industry median. Based on the distribution chart, Southwest Airlines Co ranks #361 out of 601 companies in the Transportation industry, which is below the industry midpoint. Overall, Southwest Airlines Co has a GF Score™ of 85/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Southwest Airlines Co's Shiller PE Ratio compare to AAL and UAL?
According to the Transportation industry distribution chart, Southwest Airlines Co ranks #361 out of 601 companies for Shiller PE Ratio. This places Southwest Airlines Co in the lower half of its industry. The industry median Shiller PE Ratio is 18.57. Southwest Airlines Co's value of 21.55 is 16% above this benchmark. Historically, Southwest Airlines Co's own Shiller PE Ratio has ranged from 8.43 to 47.27 over the past decade. While the company's 10-year median is 19.31 vs. the industry median of 18.57, 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 Shiller PE Ratio for a Transportation company?
The median Shiller PE Ratio among Transportation companies is 18.57, based on 601 companies in the industry. Companies in the top quartile (top 25%) have a Shiller PE Ratio significantly above this median, while those in the bottom quartile fall well below. However, Shiller PE Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Southwest Airlines Co's current Shiller PE Ratio of 21.55 is 16% 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 Shiller PE Ratio mean?
A high Shiller PE Ratio can signal that a stock is expensive relative to its fundamentals. Shiller price-earnings ratio is the ratio of share price to a company's inflation-adjusted earnings over a 10-year period. View historical data on Southwest Airlines Co and its competitors. For the Transportation industry, the median Shiller PE Ratio is 18.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Southwest Airlines Co's current Shiller PE Ratio is 21.55, which is 12% above median its own 10-year median of 19.31. 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 (FRA:SWN) is currently considered Fairly Valued. The stock's GF Value™ is €37.67, compared to a current price of €38.79 — trading 3% above its estimated fair value. The current Shiller PE Ratio is 21.55, which is 12% above median its 10-year median of 19.31 and 16% above the Transportation industry median of 18.57. Southwest Airlines Co's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Shiller PE Ratio calculated?
Shiller PE Ratio is calculated from a company's financial statements. For Southwest Airlines Co (FRA:SWN), the current Shiller PE Ratio is 21.55 as of Aug. 15, 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 (FRA:SWN) Overvalued in 2026?
Based on GuruFocus' analysis, Southwest Airlines Co stock appears to be overvalued.
The current stock price of €38.79 is trading 3% above its estimated GF Value™ of €37.67.
GuruFocus considers Southwest Airlines Co to be Fairly Valued.
Key valuation signals for FRA:SWN:
Shiller PE Ratio: 21.55 (12% above median its 10-year median of 19.31)
GF Value™: €37.67 vs. price of €38.79 (3% above fair value)
Industry Position: 16% above the Transportation median (#361 of 601)
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 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.
85GF Score
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