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This is like comparing apples to apples, or in this case, airlines to airlines. The analysts identify publicly traded companies that are similar to JetBlue in terms of size, business model, geographic focus, and growth prospects. They then look at these comparable companies' financial metrics, such as revenue, earnings, and cash flow. They use financial ratios like the price-to-earnings ratio (P/E), price-to-sales ratio (P/S), and enterprise value-to-EBITDA (EV/EBITDA) to calculate valuation multiples. They apply these multiples to JetBlue's financial data to estimate its value. So, if similar airlines are trading at, say, 10 times their earnings, the analysts might apply the same multiple to JetBlue's earnings. This gives a valuation range.
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