Is Southwest Airlines Co. overvalued?

Southwest Airlines Co. (LUV) looks overvalued — trading about 63% above its fair value.

Overvalued

Price

$42.68

Fair value

$16.00

Current P/E

54.0

Normal P/E

20.3

Market cap

$20.88B

Dividend yield

1.8%

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 24 Sep 2026.

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