PEGY
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LUV

HOLD

Southwest Airlines Co.

Industrials

1.21
PEGY ratio
Rank #232
Why This Matters

This stock appears fairly valued relative to its growth and dividend yield. Strong projected growth of 201.9% annually over 5 years. Pays a 1.5% dividend yield.

LUV is fairly valued at 32.0x earnings with 25.0% capped growth (actual 201.9%) + 1.5% yield (PEGY 1.21). The stock is priced close to what its growth and income profile would suggest.

~ Growth estimate uses historical CAGR (forward estimates unavailable)

  • Growth rate derived from historical CAGR — limited analyst coverage.
  • Growth rate capped at 25% for PEGY calculation (actual: 201.9%). Per Peter Lynch methodology, growth above 25% is rarely sustainable over 5 years.

Scan date: 2026-06-19

Valuation
32.0x
P/E Ratio
Growth
201.9%
5yr EPS
Income
1.5%
Div Yield
PEGY Components
PEGY Score1.21
Denominator26.5%
EPS (TTM)$1.50
Market Data
Price$47.97
ExchangeNYSE
S&P 500
What Changed
PEGY Score
1.141.21(+0.07)
Rank
#216#232(16 positions)

vs 7 days ago

Portfolio Context

Founder does not hold this stock.

Not in your portfolio.

Sector: Industrials

PEGY History — 90 days
Data: Yahoo Finance • Updated nightly 11 PM ET • For informational purposes only