LUV PEG Ratio Analysis
Updated 1155h ago·SEC filings & market data
Key Takeaway
A PEG ratio of 3.31x means investors are paying $3.31 for each unit of expected earnings growth, making the stock expensive relative to its growth prospects.
Sector Performance
86th percentileLUV
3.31x
Sector Median
0.73x
Sector Avg
2.54x
Prior Period
0.12x(Jul 2026)
Deep Analysis
A PEG ratio of 3.31x means investors are paying $3.31 for each unit of expected earnings growth, making the stock expensive relative to its growth prospects.
Among sector peers, the median is 0.81x, placing LUV in the 84th percentile, so it costs far more than most competitors. The metric is increasing, with a quarter-over-quarter jump of +2658.3% from 0.12x, while the year-over-year change is not available. This combination of a high level and rising trend signals increased risk: the stock's price has climbed faster than its earnings expectations, leaving limited margin for error. That risk contradicts the overall NEUTRAL verdict, as the PEG ratio suggests downside if growth disappoints. Therefore, this metric does not support a neutral stance—it points toward caution rather than balance.
Frequently Asked Questions
What does the PEG Ratio tell investors about LUV?
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
How is the PEG Ratio calculated?
PEG Ratio is calculated as: P/E Ratio / EPS Growth Rate.
Learn More About PEG Ratio
The Formula
P/E Ratio / EPS Growth Rate
Why It Matters
The PEG ratio adjusts P/E for expected growth. A PEG below 1.0 may signal undervaluation; above 2.0 may suggest the growth story is priced in.
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3.31x
Sector Median
0.73x
Sector Avg
2.54x
How LUV's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.