Ratio Examination: Southwest Airlines Co (LUV)’s Price-to-Cash and Price-to-Free Cash Flow

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In the latest session, Southwest Airlines Co (NYSE: LUV) closed at $32.33 up 0.25% from its previous closing price of $32.25. In other words, the price has increased by $0.25 from its previous closing price. On the day, 4.3 million shares were traded. LUV stock price reached its highest trading level at $33.35 during the session, while it also had its lowest trading level at $32.16.

Ratios:

For a deeper understanding of Southwest Airlines Co’s stock, let’s take a closer look at its various ratios. For the most recent quarter (mrq), Quick Ratio is recorded 0.49 and its Current Ratio is at 0.56. In the meantime, Its Debt-to-Equity ratio is 0.67 whereas as Long-Term Debt/Eq ratio is at 0.62.

On July 15, 2025, Evercore ISI Downgraded its rating to In-line which previously was Outperform but kept the price unchanged to $40.

Deutsche Bank Upgraded its Hold to Buy on May 29, 2025, while the target price for the stock was maintained at $40.

Insider Transactions:

Additionally, insider trades can be beneficial to investors who want to learn what the management thinks about stock prices in the future. A recent insider transaction in this stock occurred on Aug 05 ’25 when Feinberg Sarah bought 1,500 shares for $30.01 per share. The transaction valued at 45,008 led to the insider holds 14,229 shares of the business.

SARETSKY GREGG A bought 3,345 shares of LUV for $100,447 on Aug 06 ’25. The Director now owns 23,644 shares after completing the transaction at $30.03 per share. On Jun 06 ’25, another insider, Green Ryan C., who serves as the Officer of the company, bought 20,910 shares for $32.94 each.

Valuation Measures:

Investors should consider key stock statistics when deciding whether to invest or divest. In the wake of the recent closing price, LUV now has a Market Capitalization of 16979329024 and an Enterprise Value of 18481317888. As of this moment, Southwest’s Price-to-Earnings (P/E) ratio for their current fiscal year is 48.62, and their Forward P/E ratio for the next fiscal year is 13.74. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.95. For the stock, the TTM Price-to-Sale (P/S) ratio is 0.62 while its Price-to-Book (P/B) ratio in mrq is 2.12. Its current Enterprise Value per Revenue stands at 0.673 whereas that against EBITDA is 11.194.

Stock Price History:

The Beta on a monthly basis for LUV is 1.21, which has changed by 0.08453536 over the last 52 weeks, in comparison to a change of 0.1716845 over the same period for the S&P500. Over the past 52 weeks, LUV has reached a high of $37.96, while it has fallen to a 52-week low of $23.82. The 50-Day Moving Average of the stock is -1.72%, while the 200-Day Moving Average is calculated to be 1.93%.

Shares Statistics:

For the past three months, LUV has traded an average of 10.53M shares per day and 6028810 over the past ten days. A total of 525.19M shares are outstanding, with a floating share count of 519.35M. Insiders hold about 1.11% of the company’s shares, while institutions hold 95.28% stake in the company. Shares short for LUV as of 1755216000 were 36320197 with a Short Ratio of 3.45, compared to 1752537600 on 35454669. Therefore, it implies a Short% of Shares Outstanding of 36320197 and a Short% of Float of 7.9799999999999995.

Dividends & Splits

According to the company, the forward annual dividend rate for LUV is 0.72, from 0.72 in the trailing year. Against a Trailing Annual Dividend Yield of 0.02245089The stock’s 5-year Average Dividend Yield is 1.03. The current Payout Ratio is 95.45% for LUV, which recently paid a dividend on 2025-09-03 with an ex-dividend date of 2025-09-03. Stock splits for the company last occurred on 2001-02-16 when the company split stock in a 3:2 ratio.

Earnings Estimates

Southwest Airlines Co (LUV) is presently subject to a detailed evaluation by 16.0 analysts, each offering their unique perspectives on its market standing.The consensus estimate for the next quarter is $0.73, with high estimates of $1.0 and low estimates of $0.44.

Analysts are recommending an EPS of between $1.25 and $0.72 for the fiscal current year, implying an average EPS of $0.96. EPS for the following year is $2.41, with 21.0 analysts recommending between $4.0 and $1.54.

Revenue Estimates

A total of 14 analysts believe the company’s revenue will be $6.93B this quarter.It ranges from a high estimate of $7.09B to a low estimate of $6.85B. As of the current estimate, Southwest Airlines Co’s year-ago sales were $6.87BFor the next quarter, 14 analysts are estimating revenue of $7.44B. There is a high estimate of $7.73B for the next quarter, whereas the lowest estimate is $7.13B.

A total of 19 analysts have provided revenue estimates for LUV’s current fiscal year. The highest revenue estimate was $28.36B, while the lowest revenue estimate was $27.67B, resulting in an average revenue estimate of $28.03B. In the same quarter a year ago, actual revenue was $27.48BBased on 20 analysts’ estimates, the company’s revenue will be $29.97B in the next fiscal year. The high estimate is $31.13B and the low estimate is $29.15B.

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