Question 1

What is JetBlue Airways Corp's WACC?

Accepted Answer

JetBlue Airways Corp (JBLU) has a Weighted Average Cost of Capital (WACC) of 7.50%. This is calculated using a Cost of Equity of 10.28% (via CAPM with a beta of 1.56) and a pre-tax Cost of Debt of 6.88%, with an equity weight of 18.40% in the capital structure.

Question 2

Is JetBlue Airways Corp's WACC high or low?

Accepted Answer

JetBlue Airways Corp's WACC of 7.50% is below the typical range of 8-12% for most companies, indicating relatively low cost of capital and lower risk. WACC is used as the discount rate in DCF valuations — a lower WACC results in higher present values of future cash flows.

Question 3

How is JetBlue Airways Corp's WACC calculated?

Accepted Answer

JetBlue Airways Corp's WACC is calculated using the formula: WACC = (E/V × Re) + (D/V × Rd × (1-T)). The Cost of Equity (Re) of 10.28% is derived from the CAPM model using a beta of 1.56. The pre-tax Cost of Debt (Rd) is 6.88%. The capital structure is 18.40% equity and 81.60% debt.

JetBlue Airways Corp (JBLU) — WACC 分析

WACC 构成

解读

JetBlue Airways Corp（JBLU）WACC：7.50%

WACC计算器

JetBlue Airways Corp（JBLU） WACC 解读

JBLU 公司分析

JBLU DCF 估值

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