Southwest Airlines Co (LUV) is overvalued and Ryanair Holdings Plc ADR (RYAAY) is overvalued.
Both trade above our estimate of their intrinsic value. RYAAY is the closer of the two: -26%, against -64% for LUV.
Values as of the 22 Sept 2026 close.
7.0x EV/EBITDAR, with aircraft leases counted as debt, values the shares at $25.69; the price of $42.08 is 64% above that value.
Leak Score 43/100 on 10 of 12 signals
7.0x EV/EBITDAR, with aircraft leases counted as debt, values the shares at $44.20; the price of $55.85 is 26% above that value.
Leak Score 59/100 on 3 of 12 signals
| Metric | LUV | RYAAY |
|---|---|---|
| Verdict | Overvalued | Overvalued |
| Price | $42.08 | $55.85 |
| Intrinsic value | $25.69 | $44.20 |
| Margin of safety | -64% | -26% |
| Leak Score | 43/100 (10/12) | 59/100 (3/12) |
| Market cap | $20.6B | $28.9B |
| Revenue growth, 5 years | 25.4% | 56.7% |
| Operating margin | 4.3% | 13.6% |
| Net margin | 2.8% | 12.1% |
| Return on equity | 11.1% | 22.6% |
| Debt to equity | 0.97 | 0.02 |
| P/E | 25.5x | 13.5x |
| Forward P/E | 9.1x | 13.6x |
| P/B | 2.9x | 2.7x |
| Dividend yield | 1.9% | 1.7% |