Intrinsic value of JetBlue Airways - JBLU

Previous Close

$20.35

  Intrinsic Value

$45.02

stock screener

  Rating & Target

str. buy

+121%

Previous close

$20.35

 
Intrinsic value

$45.02

 
Up/down potential

+121%

 
Rating

str. buy

We calculate the intrinsic value of JBLU stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 6.7

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  3.37
  3.40
  3.56
  3.70
  3.83
  3.95
  4.06
  4.15
  4.23
  4.31
  4.38
  4.44
  4.50
  4.55
  4.59
  4.63
  4.67
  4.70
  4.73
  4.76
  4.78
  4.81
  4.82
  4.84
  4.86
  4.87
  4.89
  4.90
  4.91
  4.92
  4.92
Revenue, $m
  6,632
  6,857
  7,102
  7,365
  7,647
  7,949
  8,271
  8,615
  8,979
  9,367
  9,777
  10,211
  10,670
  11,156
  11,668
  12,209
  12,779
  13,380
  14,013
  14,680
  15,383
  16,122
  16,900
  17,718
  18,579
  19,484
  20,436
  21,437
  22,489
  23,594
  24,756
Variable operating expenses, $m
 
  3,806
  3,941
  4,087
  4,244
  4,412
  4,591
  4,781
  4,984
  5,198
  5,426
  5,667
  5,922
  6,191
  6,476
  6,776
  7,092
  7,426
  7,777
  8,148
  8,537
  8,948
  9,379
  9,834
  10,311
  10,814
  11,342
  11,897
  12,481
  13,095
  13,740
Fixed operating expenses, $m
 
  1,719
  1,762
  1,806
  1,851
  1,897
  1,945
  1,993
  2,043
  2,094
  2,147
  2,200
  2,255
  2,312
  2,370
  2,429
  2,490
  2,552
  2,616
  2,681
  2,748
  2,817
  2,887
  2,959
  3,033
  3,109
  3,187
  3,266
  3,348
  3,432
  3,518
Total operating expenses, $m
  5,320
  5,525
  5,703
  5,893
  6,095
  6,309
  6,536
  6,774
  7,027
  7,292
  7,573
  7,867
  8,177
  8,503
  8,846
  9,205
  9,582
  9,978
  10,393
  10,829
  11,285
  11,765
  12,266
  12,793
  13,344
  13,923
  14,529
  15,163
  15,829
  16,527
  17,258
Operating income, $m
  1,312
  1,333
  1,398
  1,471
  1,552
  1,640
  1,736
  1,840
  1,953
  2,074
  2,204
  2,344
  2,493
  2,653
  2,823
  3,004
  3,197
  3,402
  3,620
  3,852
  4,097
  4,358
  4,633
  4,925
  5,234
  5,561
  5,907
  6,273
  6,659
  7,068
  7,499
EBITDA, $m
  1,705
  1,740
  1,820
  1,909
  2,006
  2,112
  2,227
  2,352
  2,486
  2,630
  2,785
  2,950
  3,127
  3,315
  3,516
  3,729
  3,956
  4,197
  4,453
  4,724
  5,011
  5,315
  5,637
  5,978
  6,338
  6,718
  7,121
  7,546
  7,995
  8,469
  8,969
Interest expense (income), $m
  0
  42
  48
  54
  62
  69
  77
  86
  95
  105
  116
  127
  139
  151
  164
  178
  192
  208
  224
  241
  259
  278
  298
  319
  341
  365
  389
  415
  442
  470
  500
Earnings before tax, $m
  1,216
  1,291
  1,350
  1,417
  1,490
  1,571
  1,659
  1,754
  1,857
  1,969
  2,088
  2,217
  2,354
  2,502
  2,659
  2,826
  3,005
  3,195
  3,396
  3,611
  3,838
  4,079
  4,335
  4,606
  4,893
  5,197
  5,518
  5,858
  6,217
  6,597
  6,999
Tax expense, $m
  457
  349
  365
  383
  402
  424
  448
  474
  501
  532
  564
  599
  636
  675
  718
  763
  811
  863
  917
  975
  1,036
  1,101
  1,170
  1,244
  1,321
  1,403
  1,490
  1,582
  1,679
  1,781
  1,890
Net income, $m
  759
  942
  986
  1,034
  1,088
  1,147
  1,211
  1,280
  1,356
  1,437
  1,524
  1,618
  1,719
  1,826
  1,941
  2,063
  2,193
  2,332
  2,479
  2,636
  2,802
  2,978
  3,165
  3,362
  3,572
  3,794
  4,028
  4,276
  4,539
  4,816
  5,109

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  971
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  9,323
  8,637
  8,944
  9,275
  9,631
  10,011
  10,417
  10,850
  11,309
  11,797
  12,313
  12,860
  13,439
  14,050
  14,695
  15,376
  16,095
  16,852
  17,649
  18,489
  19,374
  20,305
  21,284
  22,315
  23,399
  24,539
  25,738
  26,998
  28,323
  29,716
  31,179
Adjusted assets (=assets-cash), $m
  8,352
  8,637
  8,944
  9,275
  9,631
  10,011
  10,417
  10,850
  11,309
  11,797
  12,313
  12,860
  13,439
  14,050
  14,695
  15,376
  16,095
  16,852
  17,649
  18,489
  19,374
  20,305
  21,284
  22,315
  23,399
  24,539
  25,738
  26,998
  28,323
  29,716
  31,179
Revenue / Adjusted assets
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
  0.794
Average production assets, $m
  7,008
  7,248
  7,506
  7,784
  8,083
  8,402
  8,743
  9,106
  9,491
  9,900
  10,334
  10,793
  11,279
  11,792
  12,333
  12,905
  13,507
  14,143
  14,812
  15,517
  16,260
  17,041
  17,863
  18,728
  19,638
  20,595
  21,601
  22,659
  23,771
  24,939
  26,167
Working capital, $m
  -811
  -1,646
  -1,704
  -1,768
  -1,835
  -1,908
  -1,985
  -2,068
  -2,155
  -2,248
  -2,346
  -2,451
  -2,561
  -2,677
  -2,800
  -2,930
  -3,067
  -3,211
  -3,363
  -3,523
  -3,692
  -3,869
  -4,056
  -4,252
  -4,459
  -4,676
  -4,905
  -5,145
  -5,397
  -5,663
  -5,941
Total debt, $m
  1,384
  1,368
  1,557
  1,760
  1,978
  2,211
  2,460
  2,725
  3,007
  3,305
  3,622
  3,957
  4,312
  4,687
  5,082
  5,500
  5,940
  6,404
  6,893
  7,408
  7,950
  8,521
  9,121
  9,753
  10,418
  11,117
  11,851
  12,624
  13,436
  14,290
  15,187
Total liabilities, $m
  5,310
  5,294
  5,483
  5,686
  5,904
  6,137
  6,386
  6,651
  6,933
  7,231
  7,548
  7,883
  8,238
  8,613
  9,008
  9,426
  9,866
  10,330
  10,819
  11,334
  11,876
  12,447
  13,047
  13,679
  14,344
  15,043
  15,777
  16,550
  17,362
  18,216
  19,113
Total equity, $m
  4,013
  3,342
  3,461
  3,590
  3,727
  3,874
  4,032
  4,199
  4,377
  4,565
  4,765
  4,977
  5,201
  5,437
  5,687
  5,951
  6,229
  6,522
  6,830
  7,155
  7,498
  7,858
  8,237
  8,636
  9,056
  9,497
  9,961
  10,448
  10,961
  11,500
  12,066
Total liabilities and equity, $m
  9,323
  8,636
  8,944
  9,276
  9,631
  10,011
  10,418
  10,850
  11,310
  11,796
  12,313
  12,860
  13,439
  14,050
  14,695
  15,377
  16,095
  16,852
  17,649
  18,489
  19,374
  20,305
  21,284
  22,315
  23,400
  24,540
  25,738
  26,998
  28,323
  29,716
  31,179
Debt-to-equity ratio
  0.345
  0.410
  0.450
  0.490
  0.530
  0.570
  0.610
  0.650
  0.690
  0.720
  0.760
  0.800
  0.830
  0.860
  0.890
  0.920
  0.950
  0.980
  1.010
  1.040
  1.060
  1.080
  1.110
  1.130
  1.150
  1.170
  1.190
  1.210
  1.230
  1.240
  1.260
Adjusted equity ratio
  0.364
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387
  0.387

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  759
  942
  986
  1,034
  1,088
  1,147
  1,211
  1,280
  1,356
  1,437
  1,524
  1,618
  1,719
  1,826
  1,941
  2,063
  2,193
  2,332
  2,479
  2,636
  2,802
  2,978
  3,165
  3,362
  3,572
  3,794
  4,028
  4,276
  4,539
  4,816
  5,109
Depreciation, amort., depletion, $m
  393
  407
  422
  437
  454
  472
  491
  512
  533
  556
  581
  606
  634
  662
  693
  725
  759
  795
  832
  872
  913
  957
  1,004
  1,052
  1,103
  1,157
  1,214
  1,273
  1,335
  1,401
  1,470
Funds from operations, $m
  1,819
  1,350
  1,408
  1,472
  1,542
  1,619
  1,702
  1,792
  1,889
  1,993
  2,105
  2,225
  2,352
  2,489
  2,634
  2,788
  2,952
  3,127
  3,311
  3,508
  3,715
  3,935
  4,168
  4,415
  4,675
  4,951
  5,242
  5,549
  5,874
  6,217
  6,579
Change in working capital, $m
  187
  -54
  -59
  -63
  -68
  -72
  -77
  -82
  -88
  -93
  -98
  -104
  -110
  -116
  -123
  -130
  -137
  -144
  -152
  -160
  -169
  -177
  -187
  -196
  -207
  -217
  -228
  -240
  -252
  -265
  -279
Cash from operations, $m
  1,632
  1,404
  1,466
  1,535
  1,610
  1,691
  1,779
  1,874
  1,977
  2,086
  2,204
  2,329
  2,463
  2,605
  2,757
  2,918
  3,089
  3,271
  3,463
  3,668
  3,884
  4,113
  4,355
  4,611
  4,882
  5,168
  5,470
  5,790
  6,127
  6,482
  6,858
Maintenance CAPEX, $m
  0
  -394
  -407
  -422
  -437
  -454
  -472
  -491
  -512
  -533
  -556
  -581
  -606
  -634
  -662
  -693
  -725
  -759
  -795
  -832
  -872
  -913
  -957
  -1,004
  -1,052
  -1,103
  -1,157
  -1,214
  -1,273
  -1,335
  -1,401
New CAPEX, $m
  -1,011
  -240
  -258
  -278
  -298
  -319
  -341
  -363
  -386
  -409
  -434
  -459
  -485
  -513
  -542
  -572
  -603
  -635
  -669
  -705
  -742
  -781
  -822
  -865
  -910
  -957
  -1,006
  -1,058
  -1,112
  -1,169
  -1,228
Cash from investing activities, $m
  -1,045
  -634
  -665
  -700
  -735
  -773
  -813
  -854
  -898
  -942
  -990
  -1,040
  -1,091
  -1,147
  -1,204
  -1,265
  -1,328
  -1,394
  -1,464
  -1,537
  -1,614
  -1,694
  -1,779
  -1,869
  -1,962
  -2,060
  -2,163
  -2,272
  -2,385
  -2,504
  -2,629
Free cash flow, $m
  587
  770
  801
  835
  874
  918
  967
  1,020
  1,079
  1,144
  1,214
  1,289
  1,371
  1,459
  1,553
  1,654
  1,761
  1,877
  1,999
  2,130
  2,270
  2,418
  2,575
  2,742
  2,920
  3,108
  3,307
  3,518
  3,742
  3,978
  4,229
Issuance/(repayment) of debt, $m
  -368
  173
  188
  203
  218
  233
  249
  265
  282
  299
  317
  335
  355
  375
  396
  417
  440
  464
  489
  515
  542
  571
  601
  632
  665
  699
  735
  773
  812
  854
  897
Issuance/(repurchase) of shares, $m
  -89
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -472
  173
  188
  203
  218
  233
  249
  265
  282
  299
  317
  335
  355
  375
  396
  417
  440
  464
  489
  515
  542
  571
  601
  632
  665
  699
  735
  773
  812
  854
  897
Total cash flow (excl. dividends), $m
  115
  943
  989
  1,038
  1,092
  1,151
  1,215
  1,285
  1,361
  1,443
  1,530
  1,625
  1,725
  1,833
  1,948
  2,071
  2,202
  2,341
  2,488
  2,645
  2,812
  2,989
  3,176
  3,374
  3,584
  3,807
  4,042
  4,291
  4,554
  4,832
  5,126
Retained Cash Flow (-), $m
  -803
  -111
  -119
  -128
  -138
  -147
  -157
  -167
  -178
  -189
  -200
  -212
  -224
  -237
  -250
  -264
  -278
  -293
  -309
  -325
  -342
  -360
  -379
  -399
  -420
  -441
  -464
  -488
  -513
  -539
  -566
Prev. year cash balance distribution, $m
 
  782
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  1,613
  870
  910
  954
  1,004
  1,058
  1,118
  1,183
  1,254
  1,330
  1,413
  1,502
  1,597
  1,699
  1,807
  1,924
  2,048
  2,180
  2,320
  2,470
  2,628
  2,797
  2,975
  3,165
  3,366
  3,578
  3,803
  4,041
  4,293
  4,560
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  1,547
  797
  792
  786
  778
  768
  755
  740
  720
  697
  671
  641
  607
  570
  531
  489
  446
  401
  357
  314
  272
  232
  195
  161
  131
  104
  82
  63
  47
  34
Current shareholders' claim on cash, %
  100
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

JetBlue Airways Corporation is a passenger carrier company. The Company provides air transportation services across the United States, the Caribbean and Latin America. Its segments include Domestic, and Caribbean & Latin America. It operates various kinds of aircrafts, including Airbus A321, Airbus A320 and Embraer E190. It also provides premium transcontinental product called Mint. As of December 31, 2016, Mint included 16 fully lie-flat seats, four of which were in suites with a privacy door. The Company also provides Fly-Fi in-flight Internet service across its Airbus fleet. It provides its customers a choice to purchase tickets from three branded fares, which include Blue, Blue Plus and Blue Flex. Each of these fare include different offerings, such as free checked bags, reduced change fees and additional TrueBlue points. As of December 31, 2016, its Airbus A321 aircraft in a single cabin layout had 200 seats and those with Mint premium service had a seating capacity of 159 seats.

FINANCIAL RATIOS  of  JetBlue Airways (JBLU)

Valuation Ratios
P/E Ratio 9
Price to Sales 1
Price to Book 1.7
Price to Tangible Book
Price to Cash Flow 4.2
Price to Free Cash Flow 11
Growth Rates
Sales Growth Rate 3.4%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 7.4%
Cap. Spend. - 3 Yr. Gr. Rate 9.7%
Financial Strength
Quick Ratio 5
Current Ratio 0
LT Debt to Equity 29.8%
Total Debt to Equity 34.5%
Interest Coverage 0
Management Effectiveness
Return On Assets 8.4%
Ret/ On Assets - 3 Yr. Avg. 7.3%
Return On Total Capital 14.5%
Ret/ On T. Cap. - 3 Yr. Avg. 12.3%
Return On Equity 21%
Return On Equity - 3 Yr. Avg. 20.6%
Asset Turnover 0.7
Profitability Ratios
Gross Margin 70.7%
Gross Margin - 3 Yr. Avg. 63.2%
EBITDA Margin 24.3%
EBITDA Margin - 3 Yr. Avg. 21%
Operating Margin 19.8%
Oper. Margin - 3 Yr. Avg. 17.2%
Pre-Tax Margin 18.3%
Pre-Tax Margin - 3 Yr. Avg. 15.4%
Net Profit Margin 11.4%
Net Profit Margin - 3 Yr. Avg. 9.6%
Effective Tax Rate 37.6%
Eff/ Tax Rate - 3 Yr. Avg. 37.2%
Payout Ratio 0%

JBLU stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the JBLU stock intrinsic value calculation we used $6632 million for the last fiscal year's total revenue generated by JetBlue Airways. The default revenue input number comes from 2016 income statement of JetBlue Airways. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our JBLU stock valuation model: a) initial revenue growth rate of 3.4% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for JBLU is calculated based on our internal credit rating of JetBlue Airways, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of JetBlue Airways.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of JBLU stock the variable cost ratio is equal to 55.5%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $1677 million in the base year in the intrinsic value calculation for JBLU stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for JetBlue Airways.

Corporate tax rate of 27% is the nominal tax rate for JetBlue Airways. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the JBLU stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for JBLU are equal to 105.7%.

Life of production assets of 17.8 years is the average useful life of capital assets used in JetBlue Airways operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for JBLU is equal to -24%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $4013 million for JetBlue Airways - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 328.747 million for JetBlue Airways is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of JetBlue Airways at the current share price and the inputted number of shares is $6.7 billion.

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AAL American Airli 51.93 52.78  hold
DAL Delta Air Line 53.27 236.01  str.buy
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COMPANY NEWS

▶ JetBlue cuts ties with a dozen cheap travel sites   [Oct-20-17 05:35PM  American City Business Journals]
▶ JetBlue Move Puts Online Travel Sites On Notice   [Oct-19-17 05:33PM  Barrons.com]
▶ [$$] JetBlue Stock Has 53% Upside   [01:22PM  Barrons.com]
▶ Hawaiian first, Virgin America last in on-time rankings   [Oct-17-17 07:04PM  Associated Press]
▶ These Stocks Have Changed Direction   [Oct-16-17 02:00PM  TheStreet.com]
▶ Business Highlights   [Oct-11-17 05:42PM  Associated Press]
▶ Hurricanes cut into JetBlue profit for 3Q and 4Q   [10:01AM  Associated Press]
▶ JetBlue Airways Reports September Traffic   [08:00AM  Business Wire]
▶ Airlines Still Worth Considering: Here's Why   [Oct-06-17 02:44PM  Zacks]
▶ Here's Why Delta, JetBlue And Other Airlines Are Surging Today   [Oct-03-17 04:05PM  Investor's Business Daily]
▶ Bulls fly with these airline stocks   [01:21PM  CNBC Videos]
▶ Why JetBlue's Stock Could Stay Grounded...For Now   [Sep-26-17 05:34PM  Barrons.com]
▶ Patriots unveil new amenities at Gillette Stadium as players take a knee   [Sep-24-17 08:50PM  American City Business Journals]
▶ First airline flights land in Puerto Rico since Maria hit   [Sep-22-17 06:15PM  Associated Press]
▶ How Did JetBlue Airways Stock Perform This Year?   [Sep-21-17 10:37AM  Market Realist]
▶ JetBlue Airways Lowers 3Q17 Guidance   [03:37PM  Market Realist]
▶ American Airlines: Is It a $75 Stock?   [11:36AM  Barrons.com]
▶ Why JetBlue Is Having a Sale   [Sep-18-17 10:50AM  24/7 Wall St.]
▶ JetBlue, American Airlines want to increase flights from S. Fla. to Cuba   [Sep-15-17 04:30PM  American City Business Journals]
Financial statements of JBLU
Valuation of Stocks

The paper VALUATION OF STOCKS: The Quest for Intrinsic Value provides a detailed description of our valuation model and discloses the calculation algorithm.

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