What is Southwest Airlines's PEG ratio?

Southwest Airlines (LUV) reported PEG ratio of 0.5× in Q1 2026.

What does PEG ratio mean?

The P/E ratio adjusted for how fast earnings are growing.

How do you interpret PEG ratio?

Around 1.0 is often cited as fairly valued for the growth on offer; below 1.0 can flag a growth bargain. Highly sensitive to the growth input and meaningless when growth is zero or negative.

How does PEG ratio compare across companies?

A rough cross-company growth-adjusted screen; treat as directional given its sensitivity to the (trailing) growth basis.

Southwest Airlines LUV PEG ratio

PEG ratio at other companies

Delta Air LinesDAL

0.4×—

United Airlines HoldingsUAL

59.5×+59.3×

Other financials

Income statement

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Revenue$7.2B+12.8%

Operating income$330.0M+248%

Net income$227.0M+252%

EPS (diluted)$0.45+273%

Balance sheet

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Cash & equivalents$3.3B-59.1%

Total debt$6.4B-20.0%

Total equity$6.9B-26.6%

Total assets$29.4B-11.6%

Cash flow

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Operating cash flow$1.4B+64.9%

CapEx$630.0M+19.5%

Free cash flow$788.0M+137%

Valuation

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Market cap$23.45B-7.3%

Enterprise value$26.51B+8.9%

P/E28.7×-17.6×

P/S0.8×-0.1×

Profitability

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Operating margin3.4%+1.6pp

Net margin2.8%+0.8pp

FCF margin-1.4%-0.4pp

Returns & leverage

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Return on equity10.1%+4.5pp

Debt / equity0.9×+0.1×

Current ratio0.5×-0.3×

Where this comes from

Calculated from Southwest Airlines’s reported figures.

market cap/net income=0.5×

Based on the most recent quarter.

The official record: Southwest Airlines’s 10-Q, filed April 23, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Southwest Airlines's PEG ratio?: Southwest Airlines (LUV) reported PEG ratio of 0.5× in Q1 2026.
What does PEG ratio mean?: The P/E ratio adjusted for how fast earnings are growing.
How do you interpret PEG ratio?: Around 1.0 is often cited as fairly valued for the growth on offer; below 1.0 can flag a growth bargain. Highly sensitive to the growth input and meaningless when growth is zero or negative.
How does PEG ratio compare across companies?: A rough cross-company growth-adjusted screen; treat as directional given its sensitivity to the (trailing) growth basis.