Is LUV or SKYW more undervalued in 2026?

CirclFi compares Southwest Airlines Company (LUV) and SkyWest, Inc. (SKYW) using 13 institutional-grade valuation models. LUV has a Quality of Company score of 7.1/10 while SKYW scores 8.5/10.

Which is a better buy — LUV or SKYW?

Compare intrinsic values from 13 independent models against current market prices. CirclFi also calculates Value Trap scores. This is not financial advice — conduct your own analysis.

How do LUV and SKYW valuations compare?

LUV at $43.31 and SKYW at $86.22 are compared across Bayesian DCF, EPV, EROIC Spread, First Chicago, Markov DDM, and 8 additional models.

LUV vs SKYW Valuation Comparison 2026 — Intrinsic Value Analysis

LUV

Airlines

Southwest Airlines Company

Quality

7.1

out of 10

Value Trap

SAFE

Price

$43.31

Last close

Models

11/13

Active

SKYW

Airlines

SkyWest, Inc.

Quality

8.5

out of 10

Value Trap

SAFE

Price

$86.22

Last close

Models

12/13

Active

Model-by-Model Comparison

Model	Type	LUV Fair Value	LUV Upside	SKYW Fair Value	SKYW Upside
Bayesian DCF	Intrinsic	$37.61	-13.2%	$306.19	+255.1%
Earnings Power Value	Intrinsic	$2.12	-95.1%	$65.73	-23.8%
EROIC Spread	Intrinsic	$•••.••	••.•%	$•••.••	••.•%
First Chicago	Scenario	$•••.••	••.•%	$•••.••	••.•%
Markov DDM	Intrinsic	$•••.••	••.•%	$•••.••	••.•%
ML-RIV	Intrinsic	$•••.••	••.•%	$•••.••	••.•%
Dynamic NAV	Asset-Based	$•••.••	••.•%	$•••.••	••.•%
PWERM	Option-Based	$•••.••	••.•%	$•••.••	••.•%
Regime Cross-Sectional	Relative	$•••.••	••.•%	$•••.••	••.•%
Sentiment SOTP	Hybrid	$•••.••	••.•%	$•••.••	••.•%
CUCE Ensemble	Ensemble	$•••.••	••.•%	$•••.••	••.•%
FTNN Topology	Relative	$•••.••	••.•%	$•••.••	••.•%

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LUV vs SKYW — Which Stock Is More Undervalued?

SKYW scores higher with a 8.5/10 quality rating vs LUV's 7.1/10. Both stocks are analyzed daily using SEC EDGAR filings across 13 independent models.

Comparing Southwest Airlines Company (LUV) and SkyWest, Inc. (SKYW) across 13 institutional-grade valuation models reveals how each company's intrinsic value stacks up against its market price. CirclFi's engine processes SEC EDGAR 10-K and 10-Q filings, FRED macroeconomic data, and GDELT news sentiment to generate independent fair value estimates daily.

LUV currently trades at $43.31 with a QOC of 7.1/10, while SKYW trades at $86.22 with a QOC of 8.5/10.

Both companies are analyzed with models spanning intrinsic (Bayesian DCF, EPV), scenario-based (First Chicago), regime-switching (Markov DDM, RCMH-DCF), machine learning (ML-RIV, FTNN Topology), and ensemble methods (CUCE).