Is Southwest Airlines Co. (LUV) Undervalued?
Based on the current stock price of $41.28 and a P/E ratio of 65.52,Southwest Airlines Co. has a PEG ratio of 24.09.
The Short Answer:
Most analysts consider a PEG ratio below 1.0 to be undervalued. With a ratio of 24.09, LUV appears to be potentially overvalued relative to its growth rate of 2.72%.
Based on a PEG ratio of 14.69 (adjusted for dividends).
Compare LUV vs Competitors
Use the calculator below to see how LUV stacks up against other stocks in the same industry.
How we analyzed LUV
We calculated the PEG (Price/Earnings-to-Growth) ratio by taking the Price-to-Earnings Ratio of 65.52and dividing it by the annual growth rate of 2.72%.
PEG = 65.52 (P/E) ÷ 2.72 (Growth) = 24.09
Frequently Asked Questions about LUV
What is the current PEG Ratio for Southwest Airlines Co. (LUV)?+
The current PEG Ratio for Southwest Airlines Co. is 24.09. A PEG ratio below 1.0 generally suggests the stock may be undervalued relative to its growth.
Is LUV stock undervalued right now?+
Based on the PEG ratio of 24.09, Southwest Airlines Co. appears to be potentially overvalued. Investors typically look for a PEG ratio below 1.0 to find undervalued growth stocks.
What is the PEGY Ratio for LUV?+
The PEGY ratio for Southwest Airlines Co. is 14.69. This metric accounts for dividend yield (1.74%), providing a more complete valuation picture.