LUVNEUTRAL

LUV EV/EBITDA Analysis

9.6x

Updated 33h ago·SEC filings & market data

Key Takeaway

EV/EBITDA measures a company's enterprise value (market cap plus debt minus cash) relative to its earnings before interest, taxes, depreciation, and amortization — essentially how many years of cash profit it costs to buy the whole business.

Sector Performance

30th percentile

LUV

9.6x

Sector Median

13.6x

Sector Avg

-30.9x

Prior Period

9.8x(Aug 2026)

↑ Improving

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Deep Analysis

LUV currently trades at 10.4x, which is below the sector median of 13.6x and places it in the 33th percentile among peers, meaning most comparable companies carry higher multiples. The metric has been decreasing over the last eight quarters, with a quarter-over-quarter change of -2.6% and no year-over-year figure available; historical values show a steady slide from 12.0x to 10.4x.

Frequently Asked Questions

What does the EV/EBITDA tell investors about LUV?

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.

How is the EV/EBITDA calculated?

EV/EBITDA is calculated as: Enterprise Value / EBITDA.

Who are LUV's closest peers by EV/EBITDA?

The closest peers by EV/EBITDA include: SMTC (76.6x), SHOP (80.2x), OKTA (83.5x), TEAM (101.4x), STEM (102.7x).

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Learn More About EV/EBITDA

EV/EBITDA Explained: The Valuation Metric Pro Investors Actually Use

Learn what EV/EBITDA is, why it beats P/E for capital-heavy companies, typical sector ranges, and key limitations every serious investor should know.

The Formula

Enterprise Value / EBITDA

Why It Matters

A valuation multiple preferred by analysts for capital-intensive or leveraged businesses. Useful for cross-sector comparisons where earnings can be distorted by debt.