CASE : JetBlue Airways IPO Valuation

1. Strategy: What are the key advantages and challenges for JetBlue considering an IPO?

2. IPO process: What are the key steps in IPO process for JetBlue?

3. Valuation assumptions: What should be taken into consideration when valuing JetBlue compared to other established companies on the market?

4. What are the key assumptions for the financial forecast in Exhibit 13? Do they seem reasonable?

5. Discount rate: What discount rate should be used to value JetBlue? Use Exhibits 5 and 6 and other relevant information in the case to determine the appropriate WACC for JetBlue.

6. Terminal value: What are the methods to estimate the terminal value for JetBlue? Evaluate each method taking into account other issues applicable to JetBllue situation?

7. IPO price: What are the pros and cons of management filing an increase in IPO price compared to that from the first roadshow?