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JetBlue Airways Corp (JBLU) — WACC Analysis

WACC Breakdown

JetBlue Airways Corp (JBLU) has a weighted average cost of capital (WACC) of 7.5%. The cost of equity is 10.6%, derived from a beta of 1.57 and a risk-free rate of 4.7%. The after-tax cost of debt is 6.8%. The capital structure is 17.5% equity and 82.5% debt.

Interpretation

A WACC of 7.5% suggests that the market views JetBlue Airways Corp as relatively low-risk, with a lower cost of financing.

Investors can compare JBLU's WACC of 7.5% against industry peers to gauge its relative financing costs. A beta of 1.57 reflects the stock's volatility relative to the broader market.

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VALUATION

JBLU WACC: 7.49% for JetBlue Airways Corp

Current inputs imply a 10.57% cost of equity and a 6.84% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
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[02]
WACC Calculation Process
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Market Data Loaded
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Company Data Fetched
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Beta Calculated (5Y)
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Inputs Auto-Populated
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WACC Calculated
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Step 2: Enter Ticker Symbol
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Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

JetBlue Airways Corp Common Stock (JBLU) WACC Results
Weighted Average Cost of Capital
7.49%
Cost of Equity
10.57%
Risk-Free Rate4.73%
Beta1.57
Market Risk Premium4.23%
Cost of Debt
6.84%
Pre-Tax Cost of Debt6.84%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 17.50%($1811.10M)
Debt: 82.50%($8537.00M)
Equity Component
1.85%
17.50% × 10.57%
Debt Component
5.64%
82.50% × 6.84%

JetBlue Airways Corp (JBLU) WACC in context

JetBlue Airways Corp (JBLU) currently screens with an estimated WACC of 7.49%. That blends a 10.57% cost of equity, a 6.84% pre-tax cost of debt, and a 17.50% equity weight into the discount rate you would typically use in a DCF model.

screens as a relatively low discount rate, which usually supports higher DCF values.

What JBLU WACC implies

A 7.49% discount rate screens as a relatively low discount rate, which usually supports higher DCF values.

How this page calculates JBLU

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.57 and equity accounts for 17.50% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.