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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 7.4%. The cost of equity is 11.0%, derived from a beta of 1.60 and a risk-free rate of 5.1%. The after-tax cost of debt is 6.8%. The capital structure is 12.2% equity and 87.8% debt.

Interpretation

A WACC of 7.4% 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 7.4% against industry peers to gauge its relative financing costs. A beta of 1.60 reflects the stock's volatility relative to the broader market.

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VALUATION

JBLU WACC: 7.35% for JetBlue Airways Corp

Current inputs imply a 11.02% 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
7.35%
Cost of Equity
11.02%
Risk-Free Rate5.10%
Beta1.60
Market Risk Premium4.23%
Cost of Debt
6.84%
Pre-Tax Cost of Debt6.84%
Tax Rate0.00%
Tax Shield0.00%
Capital Structure
Equity: 12.22%($1188.53M)
Debt: 87.78%($8537.00M)
Equity Component
1.35%
12.22% × 11.02%
Debt Component
6.00%
87.78% × 6.84%

JetBlue Airways Corp (JBLU) WACC in context

JetBlue Airways Corp (JBLU) currently screens with an estimated WACC of 7.35%. That blends a 11.02% cost of equity, a 6.84% pre-tax cost of debt, and a 12.22% 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 7.35% 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 1.60 and equity accounts for 12.22% 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.