Amid the topmost stocks in today’s market is Southwest Airlines Co. (NYSE:LUV). Southwest Airlines Co. had a market cap of 28193.11, indicating that it has a good hold on the market value of the shares outstanding. The current market cap of Southwest Airlines Co. exhibits the basic determinant of asset allocation and risk-return parameters for its stocks.
The P/E of Southwest Airlines Co. is currently valued at 15.88 allowing its investors to analyze the company’s stock valuation and its shares relative to the income of the company that it makes. With the constructive P/E value of Southwest Airlines Co., the investors are able to forecast the positive earnings growth of the company.
The forward P/E of Southwest Airlines Co. is at 10.61 signifying the uses of estimated net earnings over the next 12 months. Investors will be getting a good grip in comparing the current earnings of the company to estimated future earnings.
With its low price-to-sales ratio of 1.45, the company is evidently a better investment since the investors are paying a lower amount for each unit of sales. However, the company sales do not necessarily expose the entire picture, as it might be unprofitable with a low P/S ratio.
The price-to-book ratio of 4.07 for Southwest Airlines Co. (NYSE:LUV) implies that investors are highly hopeful for the organization to create more value from the given set of assets. The market value of the firm’s assets are considerably higher in contrast to their accounting value. The current P/B amount of Southwest Airlines Co. best indicates the value approach in differentiating good from the bad. The ratio also provides a clue to how much investors are paying for what would be left if the company went bankrupt immediately.
The target payout ratio for Southwest Airlines Co. is currently measuring at 9.80%, outlining what size the company’s dividends should be. It also demonstrates a stable dividend policy for Southwest Airlines Co. connected to the long-run, with viable earnings.
The EPS for Southwest Airlines Co. is valued at 2.73 with an EPS growth this year at 56.20%. The company’s EPS growth for the following year is valued at 16.12%, indicating an EPS value of 66.00% for the past 5 years, and an EPS value of 29.15% for the coming five years.
Southwest Airlines Co.’s sales for the past 5 years rolls at 12.40%, exhibiting an EPS growth from quarter-to-quarter at 83.30%. The sales growth of the company is 10.80% at the moment, indicating the average sales volume of the company’s products and services that have typically improved year-to-year.
Company’s existing stock price is at 43.17 with a change in price of -0.42%. As of now, the target price for the company is measuring at 53.77. Southwest Airlines Co.’s ROA is rolling at 8.80%, following the ROI of 16.00%. Quick and current ratio is valued at 0.6 and 0.6 respectively.