Southwest Airlines Stock Market Value
| LUV Stock | USD 32.36 0.40 1.25% |
| Symbol | Southwest |
Southwest Airlines Price To Book Ratio
Is Passenger Airlines space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Southwest Airlines. If investors know Southwest will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Southwest Airlines listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.64) | Dividend Share 0.72 | Earnings Share (0.08) | Revenue Per Share 45.837 | Quarterly Revenue Growth 0.053 |
The market value of Southwest Airlines is measured differently than its book value, which is the value of Southwest that is recorded on the company's balance sheet. Investors also form their own opinion of Southwest Airlines' value that differs from its market value or its book value, called intrinsic value, which is Southwest Airlines' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Southwest Airlines' market value can be influenced by many factors that don't directly affect Southwest Airlines' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Southwest Airlines' value and its price as these two are different measures arrived at by different means. Investors typically determine if Southwest Airlines is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Southwest Airlines' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Southwest Airlines 'What if' Analysis
In the world of financial modeling, what-if analysis is part of sensitivity analysis performed to test how changes in assumptions impact individual outputs in a model. When applied to Southwest Airlines' stock what-if analysis refers to the analyzing how the change in your past investing horizon will affect the profitability against the current market value of Southwest Airlines.
| 10/30/2024 |
| 11/29/2024 |
If you would invest 0.00 in Southwest Airlines on October 30, 2024 and sell it all today you would earn a total of 0.00 from holding Southwest Airlines or generate 0.0% return on investment in Southwest Airlines over 30 days. Southwest Airlines is related to or competes with United Airlines, American Airlines, JetBlue Airways, Delta Air, and Frontier Group. Southwest Airlines Co. operates as a passenger airline company that provide scheduled air transportation services in the... More
Southwest Airlines Upside/Downside Indicators
Understanding different market momentum indicators often help investors to time their next move. Potential upside and downside technical ratios enable traders to measure Southwest Airlines' stock current market value against overall market sentiment and can be a good tool during both bulling and bearish trends. Here we outline some of the essential indicators to assess Southwest Airlines upside and downside potential and time the market with a certain degree of confidence.
| Downside Deviation | 2.03 | |||
| Information Ratio | 0.0334 | |||
| Maximum Drawdown | 10.99 | |||
| Value At Risk | (2.65) | |||
| Potential Upside | 2.96 |
Southwest Airlines Market Risk Indicators
Today, many novice investors tend to focus exclusively on investment returns with little concern for Southwest Airlines' investment risk. Other traders do consider volatility but use just one or two very conventional indicators such as Southwest Airlines' standard deviation. In reality, there are many statistical measures that can use Southwest Airlines historical prices to predict the future Southwest Airlines' volatility.| Risk Adjusted Performance | 0.0842 | |||
| Jensen Alpha | 0.1003 | |||
| Total Risk Alpha | (0.1) | |||
| Sortino Ratio | 0.03 | |||
| Treynor Ratio | 0.2678 |
Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Southwest Airlines' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Southwest Airlines Backtested Returns
At this stage we consider Southwest Stock to be very steady. Southwest Airlines owns Efficiency Ratio (i.e., Sharpe Ratio) of 0.0922, which indicates the firm had a 0.0922% return per unit of risk over the last 3 months. We have found thirty technical indicators for Southwest Airlines, which you can use to evaluate the volatility of the company. Please validate Southwest Airlines' Risk Adjusted Performance of 0.0842, semi deviation of 1.71, and Coefficient Of Variation of 977.6 to confirm if the risk estimate we provide is consistent with the expected return of 0.17%. Southwest Airlines has a performance score of 7 on a scale of 0 to 100. The entity has a beta of 0.66, which indicates possible diversification benefits within a given portfolio. As returns on the market increase, Southwest Airlines' returns are expected to increase less than the market. However, during the bear market, the loss of holding Southwest Airlines is expected to be smaller as well. Southwest Airlines right now has a risk of 1.83%. Please validate Southwest Airlines downside variance, as well as the relationship between the daily balance of power and period momentum indicator , to decide if Southwest Airlines will be following its existing price patterns.
Auto-correlation | -0.1 |
Very weak reverse predictability
Southwest Airlines has very weak reverse predictability. Overlapping area represents the amount of predictability between Southwest Airlines time series from 30th of October 2024 to 14th of November 2024 and 14th of November 2024 to 29th of November 2024. The more autocorrelation exist between current time interval and its lagged values, the more accurately you can make projection about the future pattern of Southwest Airlines price movement. The serial correlation of -0.1 indicates that less than 10.0% of current Southwest Airlines price fluctuation can be explain by its past prices.
| Correlation Coefficient | -0.1 | |
| Spearman Rank Test | -0.39 | |
| Residual Average | 0.0 | |
| Price Variance | 0.07 |
Southwest Airlines lagged returns against current returns
Autocorrelation, which is Southwest Airlines stock's lagged correlation, explains the relationship between observations of its time series of returns over different periods of time. The observations are said to be independent if autocorrelation is zero. Autocorrelation is calculated as a function of mean and variance and can have practical application in predicting Southwest Airlines' stock expected returns. We can calculate the autocorrelation of Southwest Airlines returns to help us make a trade decision. For example, suppose you find that Southwest Airlines has exhibited high autocorrelation historically, and you observe that the stock is moving up for the past few days. In that case, you can expect the price movement to match the lagging time series.
Current and Lagged Values |
| Timeline |
Southwest Airlines regressed lagged prices vs. current prices
Serial correlation can be approximated by using the Durbin-Watson (DW) test. The correlation can be either positive or negative. If Southwest Airlines stock is displaying a positive serial correlation, investors will expect a positive pattern to continue. However, if Southwest Airlines stock is observed to have a negative serial correlation, investors will generally project negative sentiment on having a locked-in long position in Southwest Airlines stock over time.
Current vs Lagged Prices |
| Timeline |
Southwest Airlines Lagged Returns
When evaluating Southwest Airlines' market value, investors can use the concept of autocorrelation to see how much of an impact past prices of Southwest Airlines stock have on its future price. Southwest Airlines autocorrelation represents the degree of similarity between a given time horizon and a lagged version of the same horizon over the previous time interval. In other words, Southwest Airlines autocorrelation shows the relationship between Southwest Airlines stock current value and its past values and can show if there is a momentum factor associated with investing in Southwest Airlines.
Regressed Prices |
| Timeline |
Thematic Opportunities
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Additional Tools for Southwest Stock Analysis
When running Southwest Airlines' price analysis, check to measure Southwest Airlines' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Southwest Airlines is operating at the current time. Most of Southwest Airlines' value examination focuses on studying past and present price action to predict the probability of Southwest Airlines' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Southwest Airlines' price. Additionally, you may evaluate how the addition of Southwest Airlines to your portfolios can decrease your overall portfolio volatility.