Southwest Airlines operates passenger airlines that provide scheduled air transportation services in the United States, Mexico, Jamaica, The Bahamas, Aruba, and the Dominican Republic. The company was founded in 1967 and is based in Dallas, Texas.
LUV Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Southwest Airlines Co. To summarize, we found that Southwest Airlines Co ranked in the 36th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. As for the metrics that stood out in our discounted cash flow analysis of Southwest Airlines Co, consider:
Southwest Airlines Co's effective tax rate, as measured by taxes paid relative to net income, is at 0 -- greater than only 0% of US stocks with positive free cash flow.
Relative to other stocks in its sector (Industrials), Southwest Airlines Co has a reliance on debt greater than 59.82% of them.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
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Southwest Airlines Co could be forced to lay off thousands of employees due to the coronavirus crisis in the absence of an extension of federal payroll aid, its Chief Executive Officer Gary Kelly said on Thursday.
On October 22, after the closing bell, Southwest Airlines (LUV) will release its 3Q20 earnings report. The company's financial performance should be well short of encouraging once again, but I do not think that any reasonable investor or analyst will be expecting otherwise. Wall Street believes that revenues will drop...
D.M. Martins Research on Seeking Alpha | September 30, 2020
CHICAGO/WASHINGTON --- American Airlines and United Airlines, two of the largest U.S. carriers, said they were beginning furloughs of over 32,000 workers on Thursday as hopes faded for a last-minute bailout from Washington. Both airlines told employees, however, in memos seen by Reuters on Wednesday that they stood ready to reverse the furloughs, which affect about 13% of their workforces before the pandemic, if a deal was reached. Tens of thousands of other employees at those airlines and others including Delta Air Lines and Southwest Airlines have accepted buyouts or leaves of absence aimed at reducing headcount as carriers battle a health crisis that has upended the global t… Keep on reading: Top US airlines starting 32,000 furloughs as bailout hopes fade
Summary List Placement Goldman Sachs expects jet fuel demand to recover in 2021 alongside the potential availability of a COVID-19 vaccine in the second quarter. The bank's analysts said the number of airline passengers will return to pre-virus levels by 2023. "We do not believe that jet fuel demand has peaked and see jet as an area of long-term demand growth in this decade," analysts said in a note dated September 25. They suggested remaining selective on equities, and named domestic-exposed airlines including Southwest Airlines , JetBlue Airways , and Alaska Air Group as preferred stocks. Visit Business Insider's homepage for more stories . Goldman Sachs remains upbeat on the outlook for oil demand next year, thanks to an anticipated recovery in jet fuel consumption, particularly if a...