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Relatively Low EV/EBITDA Ratio Detected in Shares of Jetblue Airways in the Airlines Industry (JBLU, DAL, AAL, ALK, SAVE)

By Amy Schwartz

Below are the three companies in the Airlines industry with the lowest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Jetblue Airways ranks lowest with a an EV/EBITDA ratio of 4.70. Following is Delta Air Li with a an EV/EBITDA ratio of 5.65. American Airline ranks third lowest with a an EV/EBITDA ratio of 5.77.

Alaska Air Group follows with a an EV/EBITDA ratio of 6.55, and Spirit Airlines rounds out the bottom five with a an EV/EBITDA ratio of 7.46.

SmarTrend recommended that subscribers consider buying shares of American Airline on October 16th, 2019 as our technology indicated a new Uptrend was in progress when shares hit $28.57. Since that recommendation, shares of American Airline have risen 7.7%. We continue to monitor American Airline for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest ev/ebitda ratio JetBlue Airways delta air li american airline alaska air group spirit airlines