Is Southwest Airlines Co. overvalued?

Southwest Airlines Co. (LUV) looks overvalued — trading about 64% above its fair value.

Overvalued

Price

$44.98

Fair value

$16.00

Current P/E

56.9

Normal P/E

20.3

Market cap

$22.00B

Dividend yield

1.6%

Return on equity

11.3%

Sector

Industrials

Fair value compares LUV's current P/E to its own historical "normal" P/E (FAST Graphs-style). Updated 11 Aug 2026.

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