Jetblue Airways IPO Valuation
19 PagesPosted: 21 Oct 2008Last revised: 11 Aug 2017
This case examines the April 2002 decision of JetBlue management to price the initial public offering of JetBlue stock during one of the worst periods in airline history. The case outlines JetBlue's innovative strategy and the associated strong financial performance over its initial two years.
Students can value the stock and take a position on whether the current $22 to $24 per share filing range is appropriate.
The case is designed to showcase corporate valuation using discounted cash flow and peer-company market multiples. A short video clip is available to registered faculty.
JetBlue Case Study
JetBlue Airways IPO Valuation
My neighbor called me the other day and she said, “You have an interesting little boy.” Turns out, the other day she asked my son Daniel what he wanted for Christmas. And he said, “I want some stock.” “Stock?” she said.
“Don't you want video games or anything?” “Nope,” he said. “I just want stock. JetBlue stock.”
CEO and Founder, JetBlue Airways
Keywords: corporate valuation, IPO underpricing
Suggested Citation:Suggested Citation
Schill, Michael J.
and Owen, John M. and Monroe, Garth and Cui, Cheng, Jetblue Airways IPO Valuation.
Jetblue Ipo Case Study Solution Case Solution
Darden Case No. UVA-F-1415. Available at SSRN: https://ssrn.com/abstract=909744
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