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Southwest Airlines (LUV, Passenger Airlines) Stock Valuation & Fair Value Mixed on our tests

Southwest Airlines (LUV, Passenger Airlines) trades at a blended P/E of 17.1, about 21% below its historical normal valuation, with a forward growth estimate of 41.9% and a PEG of 0.41. Analysts' one-year estimates have been hit 27% of the time. Priced at its historical normal P/E of 21.6 on the same blended earnings, the 2026-10-02 close of $42.47 corresponds to about $53.60 a share. This is a valuation reference, not a price target.

Blended P/E
17.1
Normal P/E
21.6
PEG
0.41
Fwd growth
41.9%
Div yield
1.7%
RSI (14)
48.9
Neutral
Technical context
  • Price $41.36 at the 2026-10-08 close, 0.2% above the 20-day average ($41.27) and 1.2% below the 50-day ($41.85).
  • RSI (14) at 48.9.
  • 52-week range $29.15 to $54.07: the price is 23.5% below the high and 41.9% above the low.

The Street vs SeerForecast

Wall Street's mean price target for LUV is $49.48 across 23 analysts, 19.6% above the current price. The average analyst rating is Buy. Our SeerForecast read of the same stock, formed without analyst targets: mixed on our tests. When the two disagree, start your digging there.

Valuation flags

Verdict history

tickerseer's rating moved from trading above its usual valuation (2026-06-03) to mixed on our tests (2026-10-05).

Blended P/E and rating by weekBlended P/E moved from 26.0 to 17.1 between 2026-06-03 and 2026-10-02, against a normal P/E of 21.6, with 3 rating changes over 37 recorded weeks.2026-06-03: P/E 26.0, Trading above its usual valuation, recalculated for the week of 2026-06-032026-06-10: P/E 24.3, Mixed on our tests, recalculated for the week of 2026-06-102026-06-12: P/E 24.3, Mixed on our tests, recalculated for the week of 2026-06-142026-06-16: P/E 24.3, Mixed on our tests, recalculated for the week of 2026-06-162026-06-18: P/E 24.3, Mixed on our tests, recalculated for the week of 2026-06-212026-07-02: P/E 26.7, Trading above its usual valuation, recalculated for the week of 2026-07-022026-07-06: P/E 26.1, Trading above its usual valuation, recalculated for the week of 2026-07-062026-07-09: P/E 26.1, Trading above its usual valuation, recalculated for the week of 2026-07-092026-07-10: P/E 23.4, Mixed on our tests, recalculated for the week of 2026-07-122026-07-13: P/E 23.4, Mixed on our tests, recalculated for the week of 2026-07-132026-07-14: P/E 23.4, Mixed on our tests, recalculated for the week of 2026-07-142026-07-20: P/E 22.2, Mixed on our tests, recalculated for the week of 2026-07-202026-07-22: P/E 22.2, Mixed on our tests, recalculated for the week of 2026-07-222026-07-24: P/E 19.2, Mixed on our tests, recalculated for the week of 2026-07-252026-07-27: P/E 19.2, Mixed on our tests, recalculated for the week of 2026-07-272026-07-31: P/E 19.0, Mixed on our tests, recalculated for the week of 2026-07-312026-07-31: P/E 18.7, Mixed on our tests, recorded live 2026-08-032026-08-07: P/E 19.1, Mixed on our tests, recalculated for the week of 2026-08-072026-08-07: P/E 19.1, Mixed on our tests, recorded live 2026-08-102026-08-14: P/E 17.9, Mixed on our tests, recalculated for the week of 2026-08-142026-08-14: P/E 17.6, Mixed on our tests, recorded live 2026-08-172026-08-21: P/E 17.6, Mixed on our tests, recalculated for the week of 2026-08-212026-08-21: P/E 15.9, Mixed on our tests, recorded live 2026-08-242026-08-27: P/E 15.9, Mixed on our tests, recalculated for the week of 2026-08-272026-08-28: P/E 15.4, Mixed on our tests, recalculated for the week of 2026-08-282026-08-28: P/E 15.3, Mixed on our tests, recalculated for the week of 2026-08-302026-08-28: P/E 15.3, Mixed on our tests, recorded live 2026-08-312026-09-04: P/E 15.2, Mixed on our tests, recalculated for the week of 2026-09-052026-09-04: P/E 15.2, Mixed on our tests, recorded live 2026-09-072026-09-11: P/E 15.4, Mixed on our tests, recalculated for the week of 2026-09-122026-09-11: P/E 15.4, Mixed on our tests, recorded live 2026-09-142026-09-18: P/E 15.9, Mixed on our tests, recalculated for the week of 2026-09-192026-09-18: P/E 15.9, Mixed on our tests, recorded live 2026-09-212026-09-25: P/E 16.3, Mixed on our tests, recalculated for the week of 2026-09-262026-09-25: P/E 16.3, Mixed on our tests, recorded live 2026-09-282026-10-02: P/E 17.1, Mixed on our tests, recalculated for the week of 2026-10-032026-10-02: P/E 17.1, Mixed on our tests, recorded live 2026-10-0520.025.0Jun 3Jul 3Aug 2Sep 2Oct 2Normal P/E 21.6
Mixed on our testsTrading above its usual valuation

Not every point was recorded live. Points marked recalculated apply today's valuation rules to the metrics tickerseer archived that week.

Selected weeks: the first, the latest, every week the rating moved, and the cheapest and dearest.

WeekBlended P/EPremium to normal P/ERating
2026-06-03P/E 26.0+20%Trading above its usual valuation (recalculated)
2026-06-10P/E 24.3+12%Mixed on our tests (recalculated)
2026-07-02P/E 26.7+23%Trading above its usual valuation (recalculated)
2026-07-12P/E 23.4+8%Mixed on our tests (recalculated)
2026-09-05P/E 15.2-30%Mixed on our tests (recalculated)
2026-10-05P/E 17.1-21%Mixed on our tests ← now
Show all 37 weeks
WeekBlended P/EPremium to normal P/ERating
2026-06-03P/E 26.0+20%Trading above its usual valuation (recalculated)
2026-06-10P/E 24.3+12%Mixed on our tests (recalculated)
2026-06-14P/E 24.3+12%Mixed on our tests (recalculated)
2026-06-16P/E 24.3+12%Mixed on our tests (recalculated)
2026-06-21P/E 24.3+12%Mixed on our tests (recalculated)
2026-07-02P/E 26.7+23%Trading above its usual valuation (recalculated)
2026-07-06P/E 26.1+21%Trading above its usual valuation (recalculated)
2026-07-09P/E 26.1+21%Trading above its usual valuation (recalculated)
2026-07-12P/E 23.4+8%Mixed on our tests (recalculated)
2026-07-13P/E 23.4+8%Mixed on our tests (recalculated)
2026-07-14P/E 23.4+8%Mixed on our tests (recalculated)
2026-07-20P/E 22.2+3%Mixed on our tests (recalculated)
2026-07-22P/E 22.2+3%Mixed on our tests (recalculated)
2026-07-25P/E 19.2-11%Mixed on our tests (recalculated)
2026-07-27P/E 19.2-11%Mixed on our tests (recalculated)
2026-07-31P/E 19.0-12%Mixed on our tests (recalculated)
2026-08-03P/E 18.7-14%Mixed on our tests
2026-08-07P/E 19.1-12%Mixed on our tests (recalculated)
2026-08-10P/E 19.1-12%Mixed on our tests
2026-08-14P/E 17.9-17%Mixed on our tests (recalculated)
2026-08-17P/E 17.6-19%Mixed on our tests
2026-08-21P/E 17.6-19%Mixed on our tests (recalculated)
2026-08-24P/E 15.9-26%Mixed on our tests
2026-08-27P/E 15.9-26%Mixed on our tests (recalculated)
2026-08-28P/E 15.4-29%Mixed on our tests (recalculated)
2026-08-30P/E 15.3-29%Mixed on our tests (recalculated)
2026-08-31P/E 15.3-29%Mixed on our tests
2026-09-05P/E 15.2-30%Mixed on our tests (recalculated)
2026-09-07P/E 15.2-30%Mixed on our tests
2026-09-12P/E 15.4-29%Mixed on our tests (recalculated)
2026-09-14P/E 15.4-29%Mixed on our tests
2026-09-19P/E 15.9-27%Mixed on our tests (recalculated)
2026-09-21P/E 15.9-27%Mixed on our tests
2026-09-26P/E 16.3-25%Mixed on our tests (recalculated)
2026-09-28P/E 16.3-25%Mixed on our tests
2026-10-03P/E 17.1-21%Mixed on our tests (recalculated)
2026-10-05P/E 17.1-21%Mixed on our tests ← now

Frequently asked questions

Is Southwest Airlines stock overvalued?

At a blended P/E of 17.1 versus its historical normal P/E of 21.6, Southwest Airlines trades about 21% below its typical valuation, with a PEG of 0.41 on 41.9% forward growth. tickerseer currently rates it mixed on our tests.

What is Southwest Airlines's fair value and PEG?

Southwest Airlines trades at a blended P/E of 17.1 against a historical normal P/E of 21.6, a PEG of 0.41, and a forward growth estimate of 41.9%. Priced at its historical normal P/E of 21.6 on the same blended earnings, the 2026-10-02 close of $42.47 corresponds to about $53.60 a share. This is a valuation reference, not a price target.

Has tickerseer's rating of Southwest Airlines changed?

tickerseer's rating moved from trading above its usual valuation (2026-06-03) to mixed on our tests (2026-10-05).

What is the analyst price target for Southwest Airlines?

The mean Wall Street price target for Southwest Airlines is $49.48 across 23 analysts, 19.6% above the current price. tickerseer's SeerForecast verdict is formed independently of analyst targets.

Industry: Passenger Airlines. Create a free account to see the full analysis: the SeerAI score, its five quality sub-scores, valuation history, and the AI research note. Options setups and metric history are part of the paid plans.

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