Intrinsic value of Nike, Inc. - NKE

Previous Close

$83.44

  Intrinsic Value

$42.49

stock screener

  Rating & Target

sell

-49%

Previous close

$83.44

 
Intrinsic value

$42.49

 
Up/down potential

-49%

 
Rating

sell

We calculate the intrinsic value of NKE stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 131.3

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  9.60
  9.14
  8.73
  8.35
  8.02
  7.72
  7.44
  7.20
  6.98
  6.78
  6.60
  6.44
  6.30
  6.17
  6.05
  5.95
  5.85
  5.77
  5.69
  5.62
  5.56
  5.50
  5.45
  5.41
  5.37
  5.33
  5.30
  5.27
  5.24
  5.22
Revenue, $m
  39,891
  43,537
  47,336
  51,290
  55,403
  59,678
  64,121
  68,738
  73,535
  78,523
  83,708
  89,102
  94,715
  100,558
  106,644
  112,986
  119,599
  126,496
  133,694
  141,210
  149,060
  157,263
  165,839
  174,807
  184,189
  194,006
  204,283
  215,044
  226,314
  238,120
Variable operating expenses, $m
  34,382
  37,520
  40,791
  44,194
  47,734
  51,414
  55,239
  59,213
  63,343
  67,636
  72,056
  76,699
  81,530
  86,560
  91,799
  97,258
  102,950
  108,887
  115,083
  121,553
  128,310
  135,371
  142,753
  150,473
  158,549
  167,000
  175,846
  185,109
  194,810
  204,972
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  34,382
  37,520
  40,791
  44,194
  47,734
  51,414
  55,239
  59,213
  63,343
  67,636
  72,056
  76,699
  81,530
  86,560
  91,799
  97,258
  102,950
  108,887
  115,083
  121,553
  128,310
  135,371
  142,753
  150,473
  158,549
  167,000
  175,846
  185,109
  194,810
  204,972
Operating income, $m
  5,509
  6,017
  6,546
  7,096
  7,669
  8,264
  8,882
  9,525
  10,193
  10,887
  11,653
  12,404
  13,185
  13,998
  14,846
  15,728
  16,649
  17,609
  18,611
  19,657
  20,750
  21,892
  23,086
  24,334
  25,640
  27,007
  28,437
  29,935
  31,504
  33,148
EBITDA, $m
  6,338
  6,917
  7,521
  8,149
  8,803
  9,482
  10,188
  10,921
  11,684
  12,476
  13,300
  14,157
  15,049
  15,977
  16,944
  17,952
  19,002
  20,098
  21,242
  22,436
  23,683
  24,987
  26,349
  27,774
  29,265
  30,824
  32,457
  34,167
  35,958
  37,833
Interest expense (income), $m
  98
  206
  272
  341
  413
  488
  565
  646
  730
  817
  908
  1,002
  1,100
  1,202
  1,308
  1,418
  1,533
  1,653
  1,778
  1,908
  2,044
  2,186
  2,335
  2,490
  2,652
  2,821
  2,998
  3,184
  3,378
  3,581
  3,794
Earnings before tax, $m
  5,303
  5,744
  6,204
  6,683
  7,181
  7,698
  8,236
  8,795
  9,375
  9,979
  10,651
  11,304
  11,983
  12,690
  13,427
  14,195
  14,996
  15,831
  16,703
  17,613
  18,564
  19,557
  20,596
  21,683
  22,819
  24,009
  25,254
  26,558
  27,923
  29,354
Tax expense, $m
  1,432
  1,551
  1,675
  1,804
  1,939
  2,079
  2,224
  2,375
  2,531
  2,694
  2,876
  3,052
  3,235
  3,426
  3,625
  3,833
  4,049
  4,274
  4,510
  4,755
  5,012
  5,280
  5,561
  5,854
  6,161
  6,482
  6,819
  7,171
  7,539
  7,925
Net income, $m
  3,872
  4,193
  4,529
  4,879
  5,242
  5,620
  6,012
  6,420
  6,844
  7,285
  7,775
  8,252
  8,748
  9,264
  9,802
  10,362
  10,947
  11,557
  12,193
  12,857
  13,552
  14,277
  15,035
  15,828
  16,658
  17,526
  18,435
  19,387
  20,384
  21,428

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  24,700
  26,958
  29,310
  31,759
  34,305
  36,952
  39,703
  42,562
  45,533
  48,621
  51,832
  55,172
  58,647
  62,265
  66,034
  69,961
  74,055
  78,326
  82,783
  87,436
  92,297
  97,377
  102,687
  108,240
  114,049
  120,128
  126,491
  133,154
  140,132
  147,443
Adjusted assets (=assets-cash), $m
  24,700
  26,958
  29,310
  31,759
  34,305
  36,952
  39,703
  42,562
  45,533
  48,621
  51,832
  55,172
  58,647
  62,265
  66,034
  69,961
  74,055
  78,326
  82,783
  87,436
  92,297
  97,377
  102,687
  108,240
  114,049
  120,128
  126,491
  133,154
  140,132
  147,443
Revenue / Adjusted assets
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
  1.615
Average production assets, $m
  4,867
  5,312
  5,775
  6,257
  6,759
  7,281
  7,823
  8,386
  8,971
  9,580
  10,212
  10,870
  11,555
  12,268
  13,011
  13,784
  14,591
  15,433
  16,311
  17,228
  18,185
  19,186
  20,232
  21,326
  22,471
  23,669
  24,923
  26,235
  27,610
  29,051
Working capital, $m
  4,587
  5,007
  5,444
  5,898
  6,371
  6,863
  7,374
  7,905
  8,457
  9,030
  9,626
  10,247
  10,892
  11,564
  12,264
  12,993
  13,754
  14,547
  15,375
  16,239
  17,142
  18,085
  19,071
  20,103
  21,182
  22,311
  23,493
  24,730
  26,026
  27,384
Total debt, $m
  5,042
  6,317
  7,646
  9,030
  10,468
  11,964
  13,518
  15,133
  16,812
  18,557
  20,371
  22,258
  24,222
  26,266
  28,395
  30,614
  32,927
  35,340
  37,858
  40,488
  43,234
  46,104
  49,104
  52,241
  55,524
  58,958
  62,554
  66,318
  70,261
  74,391
Total liabilities, $m
  13,956
  15,231
  16,560
  17,944
  19,382
  20,878
  22,432
  24,047
  25,726
  27,471
  29,285
  31,172
  33,136
  35,180
  37,309
  39,528
  41,841
  44,254
  46,772
  49,402
  52,148
  55,018
  58,018
  61,155
  64,438
  67,872
  71,468
  75,232
  79,175
  83,305
Total equity, $m
  10,745
  11,727
  12,750
  13,815
  14,923
  16,074
  17,271
  18,514
  19,807
  21,150
  22,547
  24,000
  25,511
  27,085
  28,725
  30,433
  32,214
  34,072
  36,011
  38,035
  40,149
  42,359
  44,669
  47,084
  49,611
  52,256
  55,024
  57,922
  60,958
  64,138
Total liabilities and equity, $m
  24,701
  26,958
  29,310
  31,759
  34,305
  36,952
  39,703
  42,561
  45,533
  48,621
  51,832
  55,172
  58,647
  62,265
  66,034
  69,961
  74,055
  78,326
  82,783
  87,437
  92,297
  97,377
  102,687
  108,239
  114,049
  120,128
  126,492
  133,154
  140,133
  147,443
Debt-to-equity ratio
  0.470
  0.540
  0.600
  0.650
  0.700
  0.740
  0.780
  0.820
  0.850
  0.880
  0.900
  0.930
  0.950
  0.970
  0.990
  1.010
  1.020
  1.040
  1.050
  1.060
  1.080
  1.090
  1.100
  1.110
  1.120
  1.130
  1.140
  1.140
  1.150
  1.160
Adjusted equity ratio
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435
  0.435

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  3,872
  4,193
  4,529
  4,879
  5,242
  5,620
  6,012
  6,420
  6,844
  7,285
  7,775
  8,252
  8,748
  9,264
  9,802
  10,362
  10,947
  11,557
  12,193
  12,857
  13,552
  14,277
  15,035
  15,828
  16,658
  17,526
  18,435
  19,387
  20,384
  21,428
Depreciation, amort., depletion, $m
  829
  901
  975
  1,053
  1,134
  1,218
  1,306
  1,396
  1,491
  1,589
  1,647
  1,753
  1,864
  1,979
  2,098
  2,223
  2,353
  2,489
  2,631
  2,779
  2,933
  3,095
  3,263
  3,440
  3,624
  3,818
  4,020
  4,232
  4,453
  4,686
Funds from operations, $m
  4,700
  5,094
  5,505
  5,932
  6,376
  6,838
  7,318
  7,817
  8,335
  8,874
  9,422
  10,005
  10,611
  11,243
  11,900
  12,586
  13,300
  14,046
  14,824
  15,636
  16,485
  17,371
  18,299
  19,268
  20,282
  21,344
  22,455
  23,619
  24,837
  26,114
Change in working capital, $m
  402
  419
  437
  455
  473
  492
  511
  531
  552
  574
  596
  620
  645
  672
  700
  729
  760
  793
  828
  864
  903
  943
  986
  1,031
  1,079
  1,129
  1,182
  1,237
  1,296
  1,358
Cash from operations, $m
  4,299
  4,675
  5,068
  5,477
  5,903
  6,346
  6,807
  7,286
  7,783
  8,300
  8,826
  9,385
  9,966
  10,571
  11,200
  11,856
  12,540
  13,253
  13,996
  14,772
  15,582
  16,428
  17,312
  18,237
  19,203
  20,215
  21,273
  22,381
  23,541
  24,756
Maintenance CAPEX, $m
  -716
  -785
  -857
  -931
  -1,009
  -1,090
  -1,174
  -1,262
  -1,353
  -1,447
  -1,545
  -1,647
  -1,753
  -1,864
  -1,979
  -2,098
  -2,223
  -2,353
  -2,489
  -2,631
  -2,779
  -2,933
  -3,095
  -3,263
  -3,440
  -3,624
  -3,818
  -4,020
  -4,232
  -4,453
New CAPEX, $m
  -430
  -445
  -463
  -482
  -502
  -522
  -542
  -563
  -585
  -608
  -633
  -658
  -685
  -713
  -743
  -774
  -807
  -841
  -878
  -917
  -958
  -1,001
  -1,046
  -1,094
  -1,145
  -1,198
  -1,254
  -1,313
  -1,375
  -1,440
Cash from investing activities, $m
  -1,146
  -1,230
  -1,320
  -1,413
  -1,511
  -1,612
  -1,716
  -1,825
  -1,938
  -2,055
  -2,178
  -2,305
  -2,438
  -2,577
  -2,722
  -2,872
  -3,030
  -3,194
  -3,367
  -3,548
  -3,737
  -3,934
  -4,141
  -4,357
  -4,585
  -4,822
  -5,072
  -5,333
  -5,607
  -5,893
Free cash flow, $m
  3,153
  3,445
  3,748
  4,063
  4,392
  4,735
  5,091
  5,461
  5,845
  6,245
  6,648
  7,079
  7,528
  7,994
  8,479
  8,984
  9,510
  10,058
  10,629
  11,224
  11,846
  12,494
  13,172
  13,879
  14,619
  15,393
  16,202
  17,048
  17,935
  18,862
Issuance/(repayment) of debt, $m
  1,232
  1,276
  1,329
  1,383
  1,439
  1,496
  1,554
  1,615
  1,679
  1,745
  1,814
  1,887
  1,964
  2,044
  2,129
  2,219
  2,313
  2,413
  2,518
  2,629
  2,746
  2,870
  3,000
  3,137
  3,282
  3,435
  3,595
  3,765
  3,943
  4,130
Issuance/(repurchase) of shares, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  1,232
  1,276
  1,329
  1,383
  1,439
  1,496
  1,554
  1,615
  1,679
  1,745
  1,814
  1,887
  1,964
  2,044
  2,129
  2,219
  2,313
  2,413
  2,518
  2,629
  2,746
  2,870
  3,000
  3,137
  3,282
  3,435
  3,595
  3,765
  3,943
  4,130
Total cash flow (excl. dividends), $m
  4,385
  4,721
  5,077
  5,447
  5,831
  6,230
  6,645
  7,076
  7,524
  7,990
  8,462
  8,966
  9,491
  10,038
  10,608
  11,203
  11,823
  12,471
  13,147
  13,853
  14,592
  15,364
  16,172
  17,017
  17,901
  18,827
  19,797
  20,813
  21,877
  22,993
Retained Cash Flow (-), $m
  -933
  -982
  -1,023
  -1,065
  -1,108
  -1,151
  -1,197
  -1,244
  -1,292
  -1,343
  -1,397
  -1,453
  -1,512
  -1,574
  -1,639
  -1,708
  -1,781
  -1,858
  -1,939
  -2,024
  -2,114
  -2,210
  -2,310
  -2,416
  -2,527
  -2,644
  -2,768
  -2,898
  -3,036
  -3,180
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  3,452
  3,738
  4,053
  4,382
  4,723
  5,079
  5,448
  5,832
  6,232
  6,646
  7,065
  7,514
  7,980
  8,464
  8,969
  9,495
  10,042
  10,613
  11,208
  11,829
  12,477
  13,154
  13,862
  14,601
  15,374
  16,183
  17,029
  17,915
  18,842
  19,813
Discount rate, %
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
  3,310
  3,422
  3,527
  3,608
  3,661
  3,686
  3,681
  3,645
  3,580
  3,484
  3,355
  3,206
  3,034
  2,842
  2,633
  2,413
  2,185
  1,954
  1,726
  1,503
  1,291
  1,091
  909
  744
  598
  472
  365
  277
  206
  149
Current shareholders' claim on cash, %
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0
  100.0

NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. The Company's operating segments include North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets. Its portfolio brands include the NIKE Brand, Jordan Brand, Hurley and Converse. As of May 31, 2016, the Company focused its NIKE brand product offerings in nine categories: Running, NIKE Basketball, the Jordan Brand, Football (Soccer), Men's Training, Women's Training, Action Sports, Sportswear (its sports-inspired lifestyle products) and Golf. Men's Training includes its baseball and American football product offerings. It also markets products designed for kids, as well as for other athletic and recreational uses, such as cricket, lacrosse, tennis, volleyball, wrestling, walking and outdoor activities. The Company sells a range of performance equipment and accessories under the NIKE Brand name.

FINANCIAL RATIOS  of  Nike, Inc. (NKE)

Valuation Ratios
P/E Ratio 32.3
Price to Sales 4
Price to Book 11
Price to Tangible Book
Price to Cash Flow 37.7
Price to Free Cash Flow 54.1
Growth Rates
Sales Growth Rate 6.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate -3.3%
Cap. Spend. - 3 Yr. Gr. Rate 4.7%
Financial Strength
Quick Ratio 19
Current Ratio 0
LT Debt to Equity 28%
Total Debt to Equity 30.6%
Interest Coverage 51
Management Effectiveness
Return On Assets 19.4%
Ret/ On Assets - 3 Yr. Avg. 17.9%
Return On Total Capital 27.8%
Ret/ On T. Cap. - 3 Yr. Avg. 26.5%
Return On Equity 34.4%
Return On Equity - 3 Yr. Avg. 30.8%
Asset Turnover 1.5
Profitability Ratios
Gross Margin 44.6%
Gross Margin - 3 Yr. Avg. 45.6%
EBITDA Margin 16.6%
EBITDA Margin - 3 Yr. Avg. 16.4%
Operating Margin 13.8%
Oper. Margin - 3 Yr. Avg. 13.8%
Pre-Tax Margin 14.2%
Pre-Tax Margin - 3 Yr. Avg. 14.1%
Net Profit Margin 12.3%
Net Profit Margin - 3 Yr. Avg. 11.6%
Effective Tax Rate 13.2%
Eff/ Tax Rate - 3 Yr. Avg. 18%
Payout Ratio 26.7%

NKE stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the NKE stock intrinsic value calculation we used $36397 million for the last fiscal year's total revenue generated by Nike, Inc.. The default revenue input number comes from 0001 income statement of Nike, Inc.. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our NKE stock valuation model: a) initial revenue growth rate of 9.6% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for NKE is calculated based on our internal credit rating of Nike, Inc., is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Nike, Inc..
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of NKE stock the variable cost ratio is equal to 86.2%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for NKE stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Nike, Inc..

Corporate tax rate of 27% is the nominal tax rate for Nike, Inc.. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the NKE stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for NKE are equal to 12.2%.

Life of production assets of 6.2 years is the average useful life of capital assets used in Nike, Inc. operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for NKE is equal to 11.5%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $9812 million for Nike, Inc. - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 1573.848 million for Nike, Inc. is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Nike, Inc. at the current share price and the inputted number of shares is $131.3 billion.

RELATED COMPANIES Price Int.Val. Rating
DECK Deckers Outdoo 174.37 7.46  str.sell

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

Copyright © X-FIN.com 2005-2019. All rigths reserved.