LUVNEUTRAL

LUV P/E Ratio Analysis

31.1x

Updated 33h ago·SEC filings & market data

Key Takeaway

The P/E ratio of 31.1x means investors currently pay $31.10 for every $1.00 of LUV's annual earnings per share, a standard measure of how expensive a stock is relative to its profitability.

Sector Performance

68th percentile

LUV

31.1x

Sector Median

23.1x

Sector Avg

33.7x

Prior Period

32.6x(Jul 2026)

↑ Improving

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Deep Analysis

The P/E ratio of 31.1x means investors currently pay $31.10 for every $1.00 of LUV's annual earnings per share, a standard measure of how expensive a stock is relative to its profitability.

That is above the sector median of 23.4x, placing LUV in the 68th percentile among peers, so it trades at a higher valuation than most comparable companies. The year-over-year change and 8-quarter trend are not available, but the quarter-over-quarter change is -4.8%, with the ratio easing from 32.6x to 31.1x. A level above the median suggests the market is pricing in stronger expected growth, while the recent decline offers a slight reduction in that premium, cutting some risk for new buyers. LUV is still valued at a premium to its sector, so any missed growth expectations could pressure the stock, but the modest pullback tempers that risk. This metric supports the overall NEUTRAL verdict because the valuation is high yet not extreme, and the recent downward drift keeps the stock in a balanced risk-opportunity position.

Frequently Asked Questions

What does the P/E Ratio tell investors about LUV?

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.

How is the P/E Ratio calculated?

P/E Ratio is calculated as: Price / EPS.

Who are LUV's closest peers by P/E Ratio?

The closest peers by P/E Ratio include: WELL (102.4x), IAC (104.9x), FORM (108.1x), MCHP (113.5x), MTSI (118.9x).

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The Formula

Price / EPS

Why It Matters

Measures how much investors pay per dollar of earnings. A high P/E signals growth expectations; a low P/E may indicate undervaluation or slow growth.