Southwest Airlines Valuation Multiples

Southwest Airlines Overview

About Southwest Airlines

Southwest Airlines is the largest domestic air carrier in the United States by passengers boarded. Southwest operates nearly 800 aircraft in an all-Boeing 737 fleet. Despite offering some longer routes and a few perks for business travelers, the airline predominantly specializes in short-haul, leisure flights operated in a single, open-seating cabin configuration in a point-to-point network. In early 2026, Southwest will modify its cabins to offer some rows with extra legroom and will update its ticketing process and merchandising to offer assigned seats and more fare categories, including a basic economy class that will more directly compete with other airlines' offerings and appear for the first time in travel aggregators' search results.

Founded

1967

HQ

Employees

72.8K

Website

southwest.com

Sectors

Airlines

Financials (LTM)

Revenue: $29B

EBITDA: $2B

EV

$21B

Valuation Multiples

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Southwest Airlines Financials

Southwest Airlines reported last 12-month revenue of $29B and EBITDA of $2B.

In the same LTM period, Southwest Airlines generated $2B in EBITDA and $755M in net income.

Southwest Airlines P&L

In the most recent fiscal year, Southwest Airlines reported revenue of $28B and EBITDA of $2B.

Southwest Airlines expects next 12-month revenue of XXX and NTM EBITDA of XXX

Southwest Airlines Stock Performance

Southwest Airlines has current market cap of $18B, and enterprise value of $21B.

Southwest Airlines' stock price is $37.60.

Southwest Airlines Valuation Multiples

Southwest Airlines trades at 0.7x EV/Revenue multiple, and 8.6x EV/EBITDA.

Southwest Airlines Financial Valuation Multiples

As of April 8, 2026, Southwest Airlines has market cap of $18B and EV of $21B.

Equity research analysts estimate Southwest Airlines' 2025E EV/Revenue multiple at XXX and 2025E EV/EBITDA multiple at XXX

Southwest Airlines has a P/E ratio of 24.4x.

Southwest Airlines Margins & Growth Rates

Southwest Airlines' revenue in the last 12 month grew by 12%.

Southwest Airlines' revenue per employee in the last FY averaged $0.4M, while opex per employee averaged $0.1M for the same period.

Southwest Airlines' rule of 40 is 26% (metric relevant for SaaS companies only, counted as combined revenue growth rate and EBITDA margin).

Southwest Airlines' rule of X is 49% (created by Bessemer, rule of X is another metric to measure SaaS companies, ~1.5x stronger vs. the traditional Rule of 40, counted as revenue growth rate multiplied by 2.5 plus EBITDA margin).

Southwest Airlines Public Comps

See public comps and valuation multiples for other Airlines comps.

Southwest Airlines M&A Activity

Southwest Airlines acquired XXX companies to date.

Last acquisition by Southwest Airlines was on XXXXXXXX, XXXXX. Southwest Airlines acquired XXXXXXXX for XXX (EV/Revenue multiple of XXX).

Southwest Airlines Investment Activity

Southwest Airlines invested in XXX companies to date.

Southwest Airlines made its latest investment on XXXXXXXX, XXXXX. Southwest Airlines invested in XXXXXXXX for XXX (EV/Revenue multiple of XXX).