PEG Ratio
Updated 200h ago
Sector Performance
11th percentileLUV
0.13x
Sector Median
0.94x
Sector Avg
3.01x
Deep Analysis
The current PEG ratio of 0.13x means the stock’s price-to-earnings (P/E) multiple is low relative to its expected earnings growth rate — a value below 1.0 typically indicates the stock may be undervalued.
Against sector peers, the ratio sits at the 11th percentile, well below the sector median of 0.97x, showing it is far cheaper on a growth-adjusted basis. The year-over-year change is not available, but the quarter-over-quarter change shows a +30.0% increase from 0.10x to 0.13x. This combination of a very low level with a rising trend could suggest the undervaluation is narrowing, which may reduce the opportunity for a re-rating. While the low PEG implies potential upside, the recent increase warrants caution. This metric contradicts the overall NEUTRAL verdict, as the extreme
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.
Who are LUV's closest peers by PEG Ratio?
The closest peers by PEG Ratio include: NUE (0.06x), VLO (0.06x), LNC (0.05x), NKE (0.05x), NCLH (0.05x).
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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0.13x
Sector Median
0.94x
Sector Avg
3.01x
How LUV's PEG Ratio compares to sector peers.
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Not financial advice. Research tool only. Data may be delayed.