Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 7.27%, higher than industry average of -1.18%.

Growth Trajectory

Profitability

In the growth phase company makes 9.15% profit on every dollar of sales, lower than industry average of 11.10%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.07% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
48.37B USD
Equity Value
46.50B USD
FCF Yield
33.37%
Average ROIC
20.64%
Cost of Capital
9.61%
P/E Ratio
34.82x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues46.31B USD51.36B USD
Operating Income or EBIT3.70B USD6.31B USD
Interest Expense----
Book Value Of Equity13.21B USD14.43B USD
Book Value Of Debt11.02B USD11.95B USD
Cash and Marketable Securities9.15B USD11.58B USD
Number of Shares Outstanding1.48B--
Minority interests0 USD0 USD
Current Stock Price74.25 USD--
Effective Tax Rate15.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-8.65%
-9.84%Company
vs
-1.19%Industry
Below Industry
Operating Margin
-3.11%
7.99%Company
vs
11.10%Industry
Below Industry
NIKE, Inc. faces challenges in both growth and profitability compared to industry peers, which may indicate competitive pressures or operational inefficiencies.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 62% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 29.76B USD Add
Present Value (Cash Flow Over Next 10 Years) 18.61B USD Add
Value of Operating Assets 48.37B USD Sub-total
Debt 11.01B USD Subtract
Minority Interests — Subtract
Cash 9.15B USD Add
Value of Equity 46.50B USD Sub-total
Number of Shares 1.48B shares Divisor
Estimated Value per Share (Fair Value) 31.51 USD Total
Current Market Price 74.25 USD Reference

Financial Projections

Total FCF Present Value
18.61B USD
Avg Revenue Growth
5.62%
Avg Operating Margin
9.40%
Avg ROIC
20.64%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue48.83B USD52.38B USD56.19B USD60.27B USD64.65B USD69.01B USD73.29B USD77.44B USD81.42B USD85.16B USD89.08B USD
Growth Rate 5.46% 7.26% 7.26% 7.26% 7.26% 6.73% 6.20% 5.66% 5.13% 4.59% 4.59%
PROFITABILITY
Operating Income3.90B USD4.59B USD5.14B USD5.74B USD6.41B USD6.84B USD7.27B USD7.68B USD8.08B USD8.45B USD8.84B USD
Operating Margin 7.99% 8.76% 9.15% 9.53% 9.92% 9.92% 9.92% 9.92% 9.92% 9.92% 9.92%
EBIT (1-tax)3.31B USD3.90B USD4.37B USD4.88B USD5.45B USD5.68B USD5.89B USD6.07B USD6.22B USD6.33B USD6.63B USD
CASH FLOW
Reinvestment1.90B USD2.04B USD2.19B USD2.35B USD2.33B USD1.68B USD1.63B USD1.56B USD1.47B USD1.54B USD3.45B USD
Free Cash Flow1.41B USD1.85B USD2.17B USD2.53B USD3.11B USD3.99B USD4.25B USD4.50B USD4.74B USD4.79B USD3.17B USD
Terminal Value--------------------75.09B USD
Present Value1.28B USD1.53B USD1.63B USD1.72B USD1.92B USD2.25B USD2.18B USD2.11B USD2.04B USD1.90B USD—
EFFICIENCY
ROIC 22.00% 22.98% 22.97% 23.02% 23.13% 21.93% 21.34% 20.76% 20.19% 19.63% 8.83%
Cost of Capital 10.07% 10.07% 10.07% 10.07% 10.07% 9.82% 9.57% 9.32% 9.07% 8.83% 8.83%
Sales/Capital 1.86x 1.86x 1.86x 1.86x 1.86x 2.53x 2.53x 2.53x 2.53x 2.53x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($B)
Reinvestment ($B)