DCF Tool

NKE

Nike, Inc. – Footwear Manufacturing
NIKE, Inc., based near Beaverton, Oregon, is the world's leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Converse, a wholly-owned NIKE, Inc. subsidiary brand, designs, markets and distributes athletic lifestyle footwear, apparel and accessories.
Analysis Results
Intrinsic Value $72.87
Latest Price $107.51
Relative Value 48% overvalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 13.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.1%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 7.11 6.45
2024 8.04 6.61
2025 9.1 6.78
2026 10.3 6.96
2027 11.7 7.14
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 143 billion. This corresponds to a present value of 79.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 33.9 billion. Adding in the terminal value gives a total present value of 114 billion.

There are presently 1.56 billion outstanding shares, so the intrinsic value per share is 72.87.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 28,213,000,000
Current Cash 12,997,000,000
Current Liabilities 10,730,000,000
Current Debt 510,000,000
Non-Cash Working Capital (NCWC) 4,996,000,000
Change in NCWC 1,853,000,000
EBIT 6,675,000,000
Tax Provision 605,000,000
Depreciation and Amortization 717,000,000
Capital Expenditure -758,000,000
Unlevered Free Cash Flow 7,879,816,869
Current Assets 26,291,000,000
Current Cash 13,476,000,000
Current Liabilities 9,674,000,000
Current Debt 2,000,000
Non-Cash Working Capital (NCWC) 3,143,000,000
Change in NCWC -593,000,000
EBIT 6,937,000,000
Tax Provision 934,000,000
Depreciation and Amortization 744,000,000
Capital Expenditure -695,000,000
Unlevered Free Cash Flow 5,420,299,504
Current Assets 20,556,000,000
Current Cash 8,787,000,000
Current Liabilities 8,284,000,000
Current Debt 251,000,000
Non-Cash Working Capital (NCWC) 3,736,000,000
Change in NCWC -275,000,000
EBIT 3,115,000,000
Tax Provision 348,000,000
Depreciation and Amortization 721,000,000
Capital Expenditure -1,086,000,000
Unlevered Free Cash Flow 2,099,516,799
Current Assets 16,525,000,000
Current Cash 4,663,000,000
Current Liabilities 7,866,000,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 4,011,000,000
Change in NCWC -180,000,000
EBIT 4,772,000,000
Tax Provision 772,000,000
Depreciation and Amortization 705,000,000
Capital Expenditure -1,119,000,000
Unlevered Free Cash Flow 3,410,663,195
Current Assets 15,134,000,000
Current Cash 5,245,000,000
Current Liabilities 6,040,000,000
Current Debt 342,000,000
Non-Cash Working Capital (NCWC) 4,191,000,000
Change in NCWC -548,000,000
EBIT 4,445,000,000
Tax Provision 2,392,000,000
Depreciation and Amortization 747,000,000
Capital Expenditure -1,028,000,000
Unlevered Free Cash Flow 1,157,632,369
Current Assets 16,061,000,000
Current Cash 6,179,000,000
Current Liabilities 5,474,000,000
Current Debt 331,000,000
Non-Cash Working Capital (NCWC) 4,739,000,000
Change in NCWC 484,000,000
EBIT 4,749,000,000
Tax Provision 646,000,000
Depreciation and Amortization 706,000,000
Capital Expenditure -1,105,000,000
Unlevered Free Cash Flow 4,206,113,385
Current Assets 15,025,000,000
Current Cash 5,457,000,000
Current Liabilities 5,358,000,000
Current Debt 45,000,000
Non-Cash Working Capital (NCWC) 4,255,000,000
Change in NCWC 356,000,000
EBIT 4,502,000,000
Tax Provision 863,000,000
Depreciation and Amortization 649,000,000
Capital Expenditure -1,143,000,000
Unlevered Free Cash Flow 3,523,587,713
Current Assets 15,976,000,000
Current Cash 5,924,000,000
Current Liabilities 6,334,000,000
Current Debt 181,000,000
Non-Cash Working Capital (NCWC) 3,899,000,000
Change in NCWC 198,000,000
EBIT 4,175,000,000
Tax Provision 932,000,000
Depreciation and Amortization 606,000,000
Capital Expenditure -963,000,000
Unlevered Free Cash Flow 3,090,649,227
Current Assets 13,696,000,000
Current Cash 5,142,000,000
Current Liabilities 5,027,000,000
Current Debt 174,000,000
Non-Cash Working Capital (NCWC) 3,701,000,000
Change in NCWC -212,000,000
EBIT 3,680,000,000
Tax Provision 851,000,000
Depreciation and Amortization 518,000,000
Capital Expenditure -880,000,000
Unlevered Free Cash Flow 2,222,343,115
Current Assets 13,626,000,000
Current Cash 5,965,000,000
Current Liabilities 3,926,000,000
Current Debt 178,000,000
Non-Cash Working Capital (NCWC) 3,913,000,000
Change in NCWC -153,000,000
EBIT 3,254,000,000
Tax Provision 808,000,000
Depreciation and Amortization 438,000,000
Capital Expenditure -636,000,000
Unlevered Free Cash Flow 2,099,444,987
Current Assets 11,531,000,000
Current Cash 3,757,000,000
Current Liabilities 3,865,000,000
Current Debt 157,000,000
Non-Cash Working Capital (NCWC) 4,066,000,000
Change in NCWC 878,000,000
EBIT 3,040,000,000
Tax Provision 760,000,000
Depreciation and Amortization 373,000,000
Capital Expenditure -597,000,000
Unlevered Free Cash Flow 2,919,477,707

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