Question: JetBlue Airways Market Value Analysis Beta: 0.59 rf: 1.52 rm: 0.0776 rd: 3.67% t: 38% We: 84.73% Wd: 15.27% rs: 3.04% WACC: 2.92% Growth Rate

JetBlue Airways Market Value Analysis
Beta: 0.59
rf: 1.52
rm: 0.0776
rd: 3.67%
t: 38%
We: 84.73%
Wd: 15.27%
rs: 3.04%
WACC: 2.92%
Growth Rate
Next Year -6.50%
Next 5 Years 3.38%
DCF: 252,551,504
Discounted Cash Flows This Year (DCF0) Year 1 (DCF1) Year 2 (DCF2) Year 3 (DCF3) Terminal Value (TV)
Growth 0 3.00% 4.00% 5.00% 3.50%
$ 252,551,504 $ 260,128,049 $ 270,533,171 $ 284,059,830 $ 10,638,870,455
JetBlue's Value: 10,638,870,455
V= 8,795,870,455
# Outstanding Shares 341,800,000
Intrinsic Value: 25.73
Market Value: 7.74

Explain and analyze why the market value of JetBlue Airways is less than the intrinsic value.

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