Discounted Cash Flow (DCF) Analysis Unlevered

NIKE, Inc. (NKE)

$110.11

-3.89 (-3.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 56.40 | 110.11 | overvalue

Operating Data

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 (%)
EBITDA 5,0995,5214,0067,4587,2867,098.977,578.938,091.358,638.409,222.45
EBITDA (%)
EBIT 4,3254,8012,8876,6616,4466,047.086,455.926,892.417,358.417,855.91
EBIT (%)
Depreciation 7747201,1197978401,051.891,123.011,198.941,2801,366.54
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 5,2454,6638,78713,47612,99710,762.1411,489.7812,266.6013,095.9513,981.38
Total Cash (%)
Account Receivables 3,4984,2722,7494,4634,6674,776.725,099.675,444.465,812.576,205.56
Account Receivables (%)
Inventories 5,2615,6227,3676,8548,4208,172.218,724.739,314.629,944.3810,616.73
Inventories (%)
Accounts Payable 2,2792,6122,2482,8363,3583,2423,461.193,695.203,945.044,211.76
Accounts Payable (%)
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 (%)

Weighted Average Cost Of Capital

Share price $ 110.11
Beta 1.024
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 7.628
Total Debt 12,627
Total Equity 177,365.19
Total Capital 189,992.19
Debt Weighting 6.65
Equity Weighting 93.35
Wacc

Build Up Free Cash

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
EBITDA 5,0995,5214,0067,4587,2867,098.977,578.938,091.358,638.409,222.45
EBIT 4,3254,8012,8876,6616,4466,047.086,455.926,892.417,358.417,855.91
Tax Rate 55.31%16.08%12.05%14.02%9.10%21.31%21.31%21.31%21.31%21.31%
EBIAT 1,9334,0292,5395,7275,859.654,758.345,080.055,423.525,790.206,181.68
Depreciation 7747201,1197978401,051.891,123.011,198.941,2801,366.54
Accounts Receivable --7741,523-1,714-204-109.72-322.96-344.79-368.10-392.99
Inventories --361-1,745513-1,566247.79-552.53-589.88-629.76-672.34
Accounts Payable -333-364588522-116219.19234.01249.83266.73
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
UFCF 1,6792,8281,9865,2164,693.654,658.234,293.324,583.594,893.495,224.34
WACC
PV UFCF 4,352.673,748.553,739.483,730.433,721.40
SUM PV UFCF 19,292.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.02
Free cash flow (t + 1) 5,328.83
Terminal Value 106,151.93
Present Value of Terminal Value 75,614.17

Intrinsic Value

Enterprise Value 94,906.70
Net Debt 4,053
Equity Value 90,853.70
Shares Outstanding 1,610.80
Equity Value Per Share 56.40