Is Southwest Airlines Co. overvalued?

Southwest Airlines Co. (LUV) looks overvalued — trading about 69% above its fair value.

Overvalued

Price

$51.91

Fair value

$16.00

Current P/E

65.7

Normal P/E

20.3

Market cap

$25.37B

Dividend yield

1.8%

Return on equity

5.5%

Sector

Industrials

Fair value compares LUV's current P/E to its own historical "normal" P/E (FAST Graphs-style). Updated 28 Jun 2026.

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