Discounted Cash Flow (DCF) Analysis Levered
JetBlue Airways Corporation (JBLU)
$10.61
+0.35 (+3.41%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 7,015 | 7,658 | 8,094 | 2,957 | 6,037 | 6,875.42 | 7,830.29 | 8,917.76 | 10,156.27 | 11,566.78 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,398 | 1,217 | 1,449 | -683 | 1,642 | 795.13 | 905.56 | 1,031.32 | 1,174.55 | 1,337.67 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -1,202 | -1,114 | -1,156 | -791 | -995 | -1,226.51 | -1,396.85 | -1,590.85 | -1,811.79 | -2,063.41 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 196 | 103 | 293 | -1,474 | 647 | -431.39 | -491.30 | -559.53 | -637.24 | -725.74 |
Weighted Average Cost Of Capital
| Share price | $ 10.61 |
|---|---|
| Beta | 1.480 |
| Diluted Shares Outstanding | 319.60 |
| Cost of Debt | |
| Tax Rate | 30.80 |
| After-tax Cost of Debt | 2.77% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.743 |
| Total Debt | 4,802 |
| Total Equity | 3,390.96 |
| Total Capital | 8,192.96 |
| Debt Weighting | 58.61 |
| Equity Weighting | 41.39 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 7,015 | 7,658 | 8,094 | 2,957 | 6,037 | 6,875.42 | 7,830.29 | 8,917.76 | 10,156.27 | 11,566.78 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,398 | 1,217 | 1,449 | -683 | 1,642 | 795.13 | 905.56 | 1,031.32 | 1,174.55 | 1,337.67 |
| Capital Expenditure | -1,202 | -1,114 | -1,156 | -791 | -995 | -1,226.51 | -1,396.85 | -1,590.85 | -1,811.79 | -2,063.41 |
| Free Cash Flow | 196 | 103 | 293 | -1,474 | 647 | -431.39 | -491.30 | -559.53 | -637.24 | -725.74 |
| WACC | ||||||||||
| PV LFCF | -408.28 | -440.07 | -474.34 | -511.28 | -551.09 | |||||
| SUM PV LFCF | -2,385.06 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.66 |
| Free cash flow (t + 1) | -740.25 |
| Terminal Value | -20,225.45 |
| Present Value of Terminal Value | -15,358.37 |
Intrinsic Value
| Enterprise Value | -17,743.44 |
|---|---|
| Net Debt | 2,784 |
| Equity Value | -20,527.44 |
| Shares Outstanding | 319.60 |
| Equity Value Per Share | -64.23 |