Southwest Airlines Company (LUV) Valuation & Financial Model
Interactive Discounted Cash Flow (DCF) model for Southwest Airlines Company (US:LUV), trading at 45.60. In 2025, Southwest Airlines Company generated $28.06 Billion in revenue and -$831.00 Million in free cash flow. Explore projected intrinsic value assumptions based on institutional-grade macro metrics.
Valuation Methodology & Recent Performance
The financial model for Southwest Airlines Company is calculated using an institutional discounted cash flow (DCF) engine utilizing recent operational metrics:
- Current Price: 45.60
- Recent Revenue (2025): $28.06 Billion
- Free Cash Flow (2025): -$831.00 Million
- Discount Rate (WACC): Derived using the Risk-Free Rate (e.g., 10Y Gov Bond) plus an Equity Risk Premium based on market volatility and stock price variance.
- Terminal Value: Projected using a perpetual growth model bounded by long-term macroeconomic estimates.