Based on Clarity's multi-model valuation engine, SOUTHWEST AIRLINES CO (LUV) has an estimated fair value of $20.44 per share, compared to its current market price of $39.41. The stock is currently trading 48.1% above Clarity's fair value estimate, resulting in a verdict of SIGNIFICANTLY OVERVALUED.

This valuation blends 4 independent models — including Comparable Companies, Residual Income, ROIC Fade, and 1 more. The primary weight is given to the Comparable Companies model, with Bayesian triangulation used to reconcile the estimates into a single blended fair value. The 4 models show moderate agreement with a 35% spread between the highest and lowest estimates.

Monte Carlo simulation across 5,000 scenarios estimates a 6.3% probability that the stock is trading below its intrinsic value, with a median simulated value of $17.59.

SOUTHWEST AIRLINES CO is classified under the Airline sector, and this valuation is based on 10-K · Filed 2026-02-05 filings sourced directly from SEC EDGAR. All models use trailing twelve month financials where available, with sector-appropriate growth and discount rate assumptions.