Discounted Cash Flow (DCF) Analysis Levered

NIKE, Inc. (NKE)

$126.37

-1.16 (-0.91%)
All numbers are in Millions, Currency in USD
Stock DCF: 56.67 | 126.37 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 36,39739,11737,40344,53846,71049,868.0853,239.6856,839.2460,682.1664,784.91
Revenue (%)
Operating Cash Flow 4,9555,9032,4856,6575,1886,123.996,538.036,980.077,451.997,955.83
Operating Cash Flow (%)
Capital Expenditure -1,028-1,119-1,086-695-758-1,174.08-1,253.45-1,338.20-1,428.68-1,525.27
Capital Expenditure (%)
Free Cash Flow 3,9274,7841,3995,9624,4304,949.915,284.585,641.876,023.326,430.56

Weighted Average Cost Of Capital

Share price $ 126.37
Beta 1.087
Diluted Shares Outstanding 1,610.80
Cost of Debt
Tax Rate 9.10
After-tax Cost of Debt -1.47%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.679
Total Debt 12,627
Total Equity 203,556.80
Total Capital 216,183.80
Debt Weighting 5.84
Equity Weighting 94.16
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 36,39739,11737,40344,53846,71049,868.0853,239.6856,839.2460,682.1664,784.91
Operating Cash Flow 4,9555,9032,4856,6575,1886,123.996,538.036,980.077,451.997,955.83
Capital Expenditure -1,028-1,119-1,086-695-758-1,174.08-1,253.45-1,338.20-1,428.68-1,525.27
Free Cash Flow 3,9274,7841,3995,9624,4304,949.915,284.585,641.876,023.326,430.56
WACC
PV LFCF 4,579.434,523.134,467.524,412.594,358.34
SUM PV LFCF 22,341.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.09
Free cash flow (t + 1) 6,559.17
Terminal Value 107,703.89
Present Value of Terminal Value 72,996.80

Intrinsic Value

Enterprise Value 95,337.81
Net Debt 4,053
Equity Value 91,284.81
Shares Outstanding 1,610.80
Equity Value Per Share 56.67