Tuesday, February 22, 2005
Valuation for Jet Airways
While on the topic of civil aviation in India, this post from Sepia Mutiny is worth a read. They have some interesting stats on Jet Airways' recent IPO in India.
An Indian airline is now worth more than American Airlines and United Airlines combined. Jet Airways’ IPO on the Bombay stock exchange last Friday was like a hipster concert: sold out in ten minutes and 50% oversubscribed. The ~$400M IPO (~$1.2B in buying power) values the company at ~$2.2B at a price-to-earnings multiple of 21.5. That’s a higher valuation than NASDAQ darling JetBlue ($1.9B), American Airlines ($1.5B), Delta ($653M) and the bankrupt United ($142M), but lower than Southwest ($11B).
Hopefully, the IPO will provide Jet with the requisite funds for expanding its fleet, its flight routes and so on. I, for one, cannot wait for Jet to start services to JFK.
An Indian airline is now worth more than American Airlines and United Airlines combined. Jet Airways’ IPO on the Bombay stock exchange last Friday was like a hipster concert: sold out in ten minutes and 50% oversubscribed. The ~$400M IPO (~$1.2B in buying power) values the company at ~$2.2B at a price-to-earnings multiple of 21.5. That’s a higher valuation than NASDAQ darling JetBlue ($1.9B), American Airlines ($1.5B), Delta ($653M) and the bankrupt United ($142M), but lower than Southwest ($11B).
Hopefully, the IPO will provide Jet with the requisite funds for expanding its fleet, its flight routes and so on. I, for one, cannot wait for Jet to start services to JFK.
