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Stocks SKYW DCF valuation

DCF valuation

What is Skywest Inc worth?

With the base-case assumptions below, a discounted cash flow model on Skywest Inc's reported free cash flow gives $630.73 per share. The share price was $102.29 on September 25, 2026, 84% below that value.

Inputs from the filings

Free cash flow, fiscal 2025
$908.3M
Average free cash flow, last 5 years
$712M
Cash
$81.4M
balance sheet of June 30, 2026
Debt
$2.3B
balance sheet of June 30, 2026
Diluted shares, fiscal 2025
41,403,000
Revenue growth per year, last 5 years
13.8%

Three sets of assumptions

CaseGrowth yrs 1-5Growth yrs 6-10After year 10Discount rateValue per shareValue vs price
Bear9.0%5.5%2.0%10.0%$362.72+255%
Base14.0%8.5%2.5%9.0%$630.73+517%
Bull19.0%11.0%3.0%8.0%$1,129.97+1,005%

Sensitivity: base case value per share

Discount rate down the side, growth after year 10 across the top. Everything else as in the base case.

1.5%2.0%2.5%3.0%3.5%
7.0%$832.61$895.43$972.21$1,068.18$1,191.57
8.0%$681.06$721.79$769.94$827.71$898.32
9.0%$570.74$598.60$630.73$668.23$712.54
10.0%$487.06$506.86$529.31$554.97$584.57
11.0%$421.54$436.06$452.29$470.55$491.24

Where the presets come from

Base: years 1 to 5 grow at Skywest Inc's revenue growth rate over the last 5 fiscal years (13.8% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.

Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.

Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.

This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.

Adjust the assumptions

Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.

Adjust the assumptions

Skywest Inc company page