Intrinsic value of JetBlue Airways Corporation - JBLU

Previous Close

$19.35

  Intrinsic Value

$77.33

stock screener

  Rating & Target

str. buy

+300%

Previous close

$19.35

 
Intrinsic value

$77.33

 
Up/down potential

+300%

 
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 0001), $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 5.8

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  11.90
  11.21
  10.59
  10.03
  9.53
  9.07
  8.67
  8.30
  7.97
  7.67
  7.41
  7.17
  6.95
  6.75
  6.58
  6.42
  6.28
  6.15
  6.04
  5.93
  5.84
  5.75
  5.68
  5.61
  5.55
  5.50
  5.45
  5.40
  5.36
  5.32
Revenue, $m
  8,569
  9,530
  10,539
  11,596
  12,701
  13,853
  15,054
  16,304
  17,603
  18,954
  20,357
  21,816
  23,332
  24,908
  26,546
  28,251
  30,025
  31,871
  33,795
  35,800
  37,890
  40,071
  42,347
  44,723
  47,205
  49,799
  52,511
  55,347
  58,315
  61,420
Variable operating expenses, $m
  7,254
  7,973
  8,730
  9,522
  10,350
  11,214
  12,113
  13,050
  14,024
  15,036
  15,256
  16,349
  17,486
  18,667
  19,894
  21,172
  22,501
  23,885
  25,327
  26,829
  28,396
  30,030
  31,735
  33,516
  35,376
  37,321
  39,353
  41,478
  43,702
  46,029
Fixed operating expenses, $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
Total operating expenses, $m
  7,254
  7,973
  8,730
  9,522
  10,350
  11,214
  12,113
  13,050
  14,024
  15,036
  15,256
  16,349
  17,486
  18,667
  19,894
  21,172
  22,501
  23,885
  25,327
  26,829
  28,396
  30,030
  31,735
  33,516
  35,376
  37,321
  39,353
  41,478
  43,702
  46,029
Operating income, $m
  1,316
  1,557
  1,809
  2,074
  2,351
  2,640
  2,941
  3,254
  3,579
  3,918
  5,101
  5,467
  5,847
  6,241
  6,652
  7,079
  7,524
  7,986
  8,468
  8,971
  9,494
  10,041
  10,611
  11,207
  11,829
  12,479
  13,158
  13,869
  14,612
  15,391
EBITDA, $m
  2,695
  2,997
  3,315
  3,647
  3,995
  4,357
  4,735
  5,128
  5,537
  5,962
  6,403
  6,862
  7,339
  7,834
  8,350
  8,886
  9,444
  10,025
  10,630
  11,260
  11,918
  12,603
  13,319
  14,067
  14,847
  15,663
  16,516
  17,408
  18,342
  19,318
Interest expense (income), $m
  0
  107
  151
  198
  247
  298
  352
  408
  466
  527
  590
  656
  724
  795
  868
  945
  1,025
  1,107
  1,194
  1,283
  1,377
  1,474
  1,576
  1,682
  1,792
  1,908
  2,028
  2,154
  2,286
  2,424
  2,568
Earnings before tax, $m
  1,209
  1,405
  1,612
  1,827
  2,053
  2,288
  2,533
  2,788
  3,053
  3,328
  4,446
  4,743
  5,052
  5,373
  5,707
  6,055
  6,416
  6,793
  7,185
  7,594
  8,020
  8,465
  8,929
  9,414
  9,921
  10,450
  11,004
  11,583
  12,189
  12,822
Tax expense, $m
  326
  379
  435
  493
  554
  618
  684
  753
  824
  899
  1,200
  1,281
  1,364
  1,451
  1,541
  1,635
  1,732
  1,834
  1,940
  2,050
  2,165
  2,286
  2,411
  2,542
  2,679
  2,822
  2,971
  3,127
  3,291
  3,462
Net income, $m
  883
  1,026
  1,176
  1,334
  1,499
  1,670
  1,849
  2,035
  2,228
  2,429
  3,245
  3,462
  3,688
  3,922
  4,166
  4,420
  4,684
  4,959
  5,245
  5,544
  5,855
  6,180
  6,519
  6,872
  7,242
  7,629
  8,033
  8,455
  8,898
  9,360

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $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
Total assets, $m
  11,659
  12,966
  14,339
  15,777
  17,280
  18,848
  20,482
  22,182
  23,950
  25,787
  27,697
  29,682
  31,744
  33,888
  36,118
  38,437
  40,850
  43,362
  45,980
  48,707
  51,551
  54,518
  57,614
  60,847
  64,225
  67,754
  71,444
  75,303
  79,340
  83,564
Adjusted assets (=assets-cash), $m
  11,659
  12,966
  14,339
  15,777
  17,280
  18,848
  20,482
  22,182
  23,950
  25,787
  27,697
  29,682
  31,744
  33,888
  36,118
  38,437
  40,850
  43,362
  45,980
  48,707
  51,551
  54,518
  57,614
  60,847
  64,225
  67,754
  71,444
  75,303
  79,340
  83,564
Revenue / Adjusted assets
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
  0.735
Average production assets, $m
  9,152
  10,178
  11,256
  12,385
  13,565
  14,795
  16,078
  17,412
  18,800
  20,243
  21,742
  23,300
  24,919
  26,602
  28,352
  30,172
  32,066
  34,039
  36,093
  38,234
  40,467
  42,796
  45,226
  47,764
  50,415
  53,186
  56,082
  59,111
  62,280
  65,596
Working capital, $m
  -1,765
  -1,963
  -2,171
  -2,389
  -2,616
  -2,854
  -3,101
  -3,359
  -3,626
  -3,904
  -4,194
  -4,494
  -4,806
  -5,131
  -5,469
  -5,820
  -6,185
  -6,566
  -6,962
  -7,375
  -7,805
  -8,255
  -8,723
  -9,213
  -9,724
  -10,259
  -10,817
  -11,402
  -12,013
  -12,652
Total debt, $m
  2,361
  3,090
  3,856
  4,659
  5,497
  6,372
  7,284
  8,232
  9,219
  10,244
  11,310
  12,417
  13,568
  14,765
  16,009
  17,303
  18,649
  20,051
  21,512
  23,034
  24,621
  26,276
  28,004
  29,808
  31,692
  33,662
  35,721
  37,874
  40,127
  42,484
Total liabilities, $m
  6,506
  7,235
  8,001
  8,804
  9,642
  10,517
  11,429
  12,377
  13,364
  14,389
  15,455
  16,562
  17,713
  18,910
  20,154
  21,448
  22,794
  24,196
  25,657
  27,179
  28,766
  30,421
  32,149
  33,953
  35,837
  37,807
  39,866
  42,019
  44,272
  46,629
Total equity, $m
  5,153
  5,731
  6,338
  6,973
  7,638
  8,331
  9,053
  9,804
  10,586
  11,398
  12,242
  13,119
  14,031
  14,979
  15,964
  16,989
  18,056
  19,166
  20,323
  21,529
  22,786
  24,097
  25,466
  26,895
  28,387
  29,947
  31,578
  33,284
  35,068
  36,936
Total liabilities and equity, $m
  11,659
  12,966
  14,339
  15,777
  17,280
  18,848
  20,482
  22,181
  23,950
  25,787
  27,697
  29,681
  31,744
  33,889
  36,118
  38,437
  40,850
  43,362
  45,980
  48,708
  51,552
  54,518
  57,615
  60,848
  64,224
  67,754
  71,444
  75,303
  79,340
  83,565
Debt-to-equity ratio
  0.460
  0.540
  0.610
  0.670
  0.720
  0.760
  0.800
  0.840
  0.870
  0.900
  0.920
  0.950
  0.970
  0.990
  1.000
  1.020
  1.030
  1.050
  1.060
  1.070
  1.080
  1.090
  1.100
  1.110
  1.120
  1.120
  1.130
  1.140
  1.140
  1.150
Adjusted equity ratio
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442
  0.442

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  883
  1,026
  1,176
  1,334
  1,499
  1,670
  1,849
  2,035
  2,228
  2,429
  3,245
  3,462
  3,688
  3,922
  4,166
  4,420
  4,684
  4,959
  5,245
  5,544
  5,855
  6,180
  6,519
  6,872
  7,242
  7,629
  8,033
  8,455
  8,898
  9,360
Depreciation, amort., depletion, $m
  1,380
  1,441
  1,505
  1,573
  1,644
  1,717
  1,794
  1,874
  1,957
  2,044
  1,302
  1,395
  1,492
  1,593
  1,698
  1,807
  1,920
  2,038
  2,161
  2,289
  2,423
  2,563
  2,708
  2,860
  3,019
  3,185
  3,358
  3,540
  3,729
  3,928
Funds from operations, $m
  2,262
  2,467
  2,682
  2,907
  3,142
  3,388
  3,643
  3,909
  4,186
  4,473
  4,547
  4,857
  5,180
  5,515
  5,864
  6,227
  6,604
  6,997
  7,406
  7,833
  8,278
  8,742
  9,227
  9,733
  10,261
  10,814
  11,391
  11,995
  12,627
  13,288
Change in working capital, $m
  -188
  -198
  -208
  -218
  -228
  -237
  -247
  -257
  -268
  -278
  -289
  -300
  -312
  -325
  -338
  -351
  -365
  -380
  -396
  -413
  -431
  -449
  -469
  -490
  -511
  -534
  -559
  -584
  -611
  -640
Cash from operations, $m
  2,450
  2,665
  2,890
  3,125
  3,370
  3,625
  3,891
  4,167
  4,453
  4,751
  4,836
  5,158
  5,492
  5,840
  6,201
  6,578
  6,969
  7,377
  7,803
  8,246
  8,709
  9,191
  9,695
  10,222
  10,772
  11,348
  11,950
  12,579
  13,238
  13,928
Maintenance CAPEX, $m
  -490
  -548
  -609
  -674
  -742
  -812
  -886
  -963
  -1,043
  -1,126
  -1,212
  -1,302
  -1,395
  -1,492
  -1,593
  -1,698
  -1,807
  -1,920
  -2,038
  -2,161
  -2,289
  -2,423
  -2,563
  -2,708
  -2,860
  -3,019
  -3,185
  -3,358
  -3,540
  -3,729
New CAPEX, $m
  -970
  -1,026
  -1,078
  -1,129
  -1,180
  -1,231
  -1,282
  -1,334
  -1,388
  -1,443
  -1,499
  -1,558
  -1,619
  -1,683
  -1,750
  -1,820
  -1,894
  -1,972
  -2,054
  -2,141
  -2,232
  -2,329
  -2,431
  -2,538
  -2,651
  -2,770
  -2,896
  -3,029
  -3,169
  -3,316
Cash from investing activities, $m
  -1,460
  -1,574
  -1,687
  -1,803
  -1,922
  -2,043
  -2,168
  -2,297
  -2,431
  -2,569
  -2,711
  -2,860
  -3,014
  -3,175
  -3,343
  -3,518
  -3,701
  -3,892
  -4,092
  -4,302
  -4,521
  -4,752
  -4,994
  -5,246
  -5,511
  -5,789
  -6,081
  -6,387
  -6,709
  -7,045
Free cash flow, $m
  990
  1,091
  1,203
  1,322
  1,448
  1,582
  1,722
  1,869
  2,023
  2,183
  2,125
  2,298
  2,478
  2,665
  2,858
  3,060
  3,268
  3,485
  3,710
  3,944
  4,187
  4,439
  4,702
  4,976
  5,261
  5,559
  5,869
  6,192
  6,530
  6,882
Issuance/(repayment) of debt, $m
  691
  729
  766
  803
  839
  875
  912
  949
  987
  1,025
  1,066
  1,107
  1,151
  1,196
  1,244
  1,294
  1,347
  1,402
  1,460
  1,522
  1,587
  1,655
  1,728
  1,804
  1,885
  1,969
  2,059
  2,153
  2,253
  2,357
Issuance/(repurchase) of shares, $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 from financing (excl. dividends), $m  
  691
  729
  766
  803
  839
  875
  912
  949
  987
  1,025
  1,066
  1,107
  1,151
  1,196
  1,244
  1,294
  1,347
  1,402
  1,460
  1,522
  1,587
  1,655
  1,728
  1,804
  1,885
  1,969
  2,059
  2,153
  2,253
  2,357
Total cash flow (excl. dividends), $m
  1,680
  1,820
  1,969
  2,124
  2,287
  2,457
  2,634
  2,818
  3,009
  3,208
  3,191
  3,406
  3,629
  3,861
  4,102
  4,354
  4,615
  4,887
  5,170
  5,466
  5,774
  6,095
  6,430
  6,780
  7,146
  7,528
  7,927
  8,345
  8,782
  9,240
Retained Cash Flow (-), $m
  -542
  -578
  -607
  -636
  -664
  -693
  -722
  -751
  -781
  -812
  -844
  -877
  -912
  -948
  -985
  -1,025
  -1,067
  -1,111
  -1,157
  -1,206
  -1,257
  -1,311
  -1,369
  -1,429
  -1,493
  -1,560
  -1,631
  -1,706
  -1,784
  -1,867
Prev. year cash balance distribution, $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 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
  1,138
  1,242
  1,362
  1,489
  1,623
  1,764
  1,912
  2,067
  2,228
  2,396
  2,347
  2,528
  2,717
  2,913
  3,117
  3,329
  3,548
  3,776
  4,014
  4,260
  4,517
  4,784
  5,061
  5,351
  5,653
  5,968
  6,297
  6,640
  6,998
  7,372
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
  1,091
  1,137
  1,185
  1,226
  1,258
  1,280
  1,292
  1,292
  1,280
  1,256
  1,114
  1,079
  1,033
  978
  915
  846
  772
  695
  618
  541
  467
  397
  332
  273
  220
  174
  135
  103
  76
  56
Current shareholders' claim on cash, %
  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 Corporation (JBLU)

Valuation Ratios
P/E Ratio 8.6
Price to Sales 1
Price to Book 1.6
Price to Tangible Book
Price to Cash Flow 4
Price to Free Cash Flow 10.5
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 $7658 million for the last fiscal year's total revenue generated by JetBlue Airways Corporation. The default revenue input number comes from 0001 income statement of JetBlue Airways Corporation. 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 11.9% 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 Corporation, 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 Corporation.
    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 85.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 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 6.4% for JetBlue Airways Corporation.

Corporate tax rate of 27% is the nominal tax rate for JetBlue Airways Corporation. 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 106.8%.

Life of production assets of 16.7 years is the average useful life of capital assets used in JetBlue Airways Corporation 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 -20.6%. 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 - $4611 million for JetBlue Airways Corporation - 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 300.478 million for JetBlue Airways Corporation 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 Corporation at the current share price and the inputted number of shares is $5.8 billion.

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