Discounted Cash Flow (DCF) Analysis Unlevered

NIKE, Inc. (NKE)

$105.63

+0.55 (+0.52%)
All numbers are in Millions, Currency in USD
Stock DCF: 53.77 | 105.63 | 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 39,11737,40344,53846,71051,21754,958.3958,973.0963,281.0667,903.7372,864.08
Revenue (%)
EBITDA 4,7723,1156,9376,6755,9156,808.487,305.847,839.538,412.219,026.72
EBITDA (%)
EBIT 4,0521,9966,1405,8355,0565,698.626,114.906,561.597,040.917,555.25
EBIT (%)
Depreciation 7201,1197978408591,109.871,190.951,277.941,371.301,471.47
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 4,6638,78713,47612,99710,67512,567.7013,485.7614,470.9015,527.9916,662.31
Total Cash (%)
Account Receivables 4,2722,7494,4634,6674,1315,094.485,466.635,865.976,294.486,754.29
Account Receivables (%)
Inventories 5,6227,3676,8548,4208,4549,231.919,906.3010,629.9511,406.4712,239.71
Inventories (%)
Accounts Payable 2,6122,2482,8363,3582,8623,498.903,754.494,028.764,323.064,638.85
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 $ 105.63
Beta 1.109
Diluted Shares Outstanding 1,569.80
Cost of Debt
Tax Rate 18.24
After-tax Cost of Debt 3.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.519
Total Debt 12,144
Total Equity 165,817.97
Total Capital 177,961.97
Debt Weighting 6.82
Equity Weighting 93.18
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 39,11737,40344,53846,71051,21754,958.3958,973.0963,281.0667,903.7372,864.08
EBITDA 4,7723,1156,9376,6755,9156,808.487,305.847,839.538,412.219,026.72
EBIT 4,0521,9966,1405,8355,0565,698.626,114.906,561.597,040.917,555.25
Tax Rate 16.08%12.05%14.02%9.10%18.24%13.90%13.90%13.90%13.90%13.90%
EBIAT 3,400.441,755.405,279.055,304.234,133.844,906.615,265.035,649.646,062.356,505.20
Depreciation 7201,1197978408591,109.871,190.951,277.941,371.301,471.47
Accounts Receivable -1,523-1,714-204536-963.48-372.15-399.34-428.51-459.81
Inventories --1,745513-1,566-34-777.91-674.39-723.65-776.52-833.24
Accounts Payable --364588522-496636.90255.59274.26294.30315.80
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 3,001.441,202.404,768.054,138.234,029.843,720.554,386.574,707.015,050.865,419.82
WACC
PV UFCF 3,409.913,684.653,623.693,563.753,504.79
SUM PV UFCF 17,786.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.11
Free cash flow (t + 1) 5,636.61
Terminal Value 110,305.53
Present Value of Terminal Value 71,330.37

Intrinsic Value

Enterprise Value 89,117.16
Net Debt 4,703
Equity Value 84,414.16
Shares Outstanding 1,569.80
Equity Value Per Share 53.77