JetBlue Airways IPO Valuation

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JetBlue Airways: IPO Valuation

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JetBlue Airways: IPO Valuation
Prepared for:
M. Sadiqul Islam
Professor
Department of Finance
Faculty of Business Studies
University of Dhaka
Prepared by:
Group No:
Section: A
BBA 23rd Batch
Serial Name ID Marks
1 Minhajur Rahman Joy 23-106
2 Md. Foyez Alam 23-155
3 H. M. Rahat Fida 23-187
4 Md. Riaj Morshed 23-197
Date of Submission: Aug 16, 2020

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Letter of Transmittal
Aug 16, 2020
M. Sadiqul Islam
Professor
Department of Finance,
Faculty of Business Studies
University of Dhaka.
Subject: Submission of the semester term paper.
Dear Sir:
It is our pleasure to submit the term paper of our 7 th semester course Investment Banking &
Lease Financing (F-403). It has been a privilege for us to have this opportunity to apply our
academic knowledge in real life situations through this case study.
We tried our level best to put sincere effort for the preparation of this term paper. As
undergraduate students, it is usual that inadequacy or error may arise and it may lack
professionalism in some cases. For any unintentional inadequacy in the term paper, your
sympathetic consideration would be highly appreciated. In addition, we will enthusiastically
welcome any clarification and suggestion about any view and conception disseminated in the
report.
We, therefore, pray that you would be kind enough to accept our report for evaluation and
oblige thereby.
Sincerely,
....................................
Minhajur Rahman Joy
On behalf of Group no.
Section: A
Department of Finance
University of Dhaka

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Table of Contents
Executive Summary ................................................................................................................. 5
Chapter 01: Introduction ........................................................................................................ 6
1.1 Scope of the study: ............................................................................................................... 6
1.2 Methodology of the study: ................................................................................................... 6
Primary Data: ......................................................................................................................... 6
Secondary Data: ..................................................................................................................... 6
Chapter 02: Analysis of Economy .......................................................................................... 7
Chapter 03: Industry Analysis ................................................................................................ 8
Porters Five Forces............................................................................................................... 8
PESTEL Analysis ................................................................................................................... 9
Chapter 04: Company Analysis ............................................................................................ 10
SWOT Analysis .................................................................................................................. 10
Ratio Analysis ..................................................................................................................... 10
Profitability Ratio ............................................................................................................. 10
Liquidity Ratio .................................................................................................................. 10
Risk Analysis ....................................................................................................................... 10
Probability of Financial Distress ...................................................................................... 10
DuPont Analysis ................................................................................................................. 11
Decompose ROE ................................................................................................................. 11
Chapter 05: Problem Statement ........................................................................................... 12
Chapter 07: Analysis of Each Alternatives .......................................................................... 14
Alternative Evaluation: Over Pricing....................................................................................... 14
Alternative Evaluation: Under Pricing..................................................................................... 14
Chapter 08: Valuation ........................................................................................................... 15
Discounted Cash Flow Approach ............................................................................................ 15
Multiple Valuation ................................................................................................................... 16
Chapter 09: Recommendation .............................................................................................. 18