Discounted Cash Flow (DCF) Analysis Unlevered

NIKE, Inc. (NKE)

$110.27

-0.10 (-0.09%)

All numbers are in Millions, Currency in USD

Stock DCF: 40.74 | 110.27 | overvalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	39,117	37,403	44,538	46,710	51,217	54,958.39	58,973.09	63,281.06	67,903.73	72,864.08
Revenue (%)
EBITDA	4,772	3,115	6,937	6,675	5,915	6,808.48	7,305.84	7,839.53	8,412.21	9,026.72
EBITDA (%)
EBIT	4,052	1,996	6,140	5,835	5,056	5,698.62	6,114.90	6,561.59	7,040.91	7,555.25
EBIT (%)
Depreciation	720	1,119	797	840	859	1,109.87	1,190.95	1,277.94	1,371.30	1,471.47
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	4,663	8,787	13,476	12,997	10,675	12,567.70	13,485.76	14,470.90	15,527.99	16,662.31
Total Cash (%)
Account Receivables	4,272	2,749	4,463	4,667	4,131	5,094.48	5,466.63	5,865.97	6,294.48	6,754.29
Account Receivables (%)
Inventories	5,622	7,367	6,854	8,420	8,454	9,231.91	9,906.30	10,629.95	11,406.47	12,239.71
Inventories (%)
Accounts Payable	2,612	2,248	2,836	3,358	2,862	3,498.90	3,754.49	4,028.76	4,323.06	4,638.85
Accounts Payable (%)
Capital Expenditure	-1,119	-1,086	-695	-758	-969	-1,191.43	-1,278.46	-1,371.85	-1,472.07	-1,579.60
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 110.27
Beta	1.088
Diluted Shares Outstanding	1,569.80
Cost of Debt
Tax Rate	18.24
After-tax Cost of Debt	3.51%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.433
Total Debt	12,144
Total Equity	173,101.85
Total Capital	185,245.85
Debt Weighting	6.56
Equity Weighting	93.44
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	39,117	37,403	44,538	46,710	51,217	54,958.39	58,973.09	63,281.06	67,903.73	72,864.08
EBITDA	4,772	3,115	6,937	6,675	5,915	6,808.48	7,305.84	7,839.53	8,412.21	9,026.72
EBIT	4,052	1,996	6,140	5,835	5,056	5,698.62	6,114.90	6,561.59	7,040.91	7,555.25
Tax Rate	16.08%	12.05%	14.02%	9.10%	18.24%	13.90%	13.90%	13.90%	13.90%	13.90%
EBIAT	3,400.44	1,755.40	5,279.05	5,304.23	4,133.84	4,906.61	5,265.03	5,649.64	6,062.35	6,505.20
Depreciation	720	1,119	797	840	859	1,109.87	1,190.95	1,277.94	1,371.30	1,471.47
Accounts Receivable	-	1,523	-1,714	-204	536	-963.48	-372.15	-399.34	-428.51	-459.81
Inventories	-	-1,745	513	-1,566	-34	-777.91	-674.39	-723.65	-776.52	-833.24
Accounts Payable	-	-364	588	522	-496	636.90	255.59	274.26	294.30	315.80
Capital Expenditure	-1,119	-1,086	-695	-758	-969	-1,191.43	-1,278.46	-1,371.85	-1,472.07	-1,579.60
UFCF	3,001.44	1,202.40	4,768.05	4,138.23	4,029.84	3,720.55	4,386.57	4,707.01	5,050.86	5,419.82
WACC
PV UFCF						3,411.79	3,688.70	3,629.68	3,571.60	3,514.44
SUM PV UFCF										17,816.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.05
Free cash flow (t + 1)	5,528.22
Terminal Value	78,414.41
Present Value of Terminal Value	50,847.26

Intrinsic Value

Enterprise Value	68,663.47
Net Debt	4,703
Equity Value	63,960.47
Shares Outstanding	1,569.80
Equity Value Per Share	40.74