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General information
NIKE, Inc. designs, develops, and markets athletic footwear, apparel, equipment, and accessory products for men, women, and children. The Company sells its products worldwide to retail stores, through its own stores, subsidiaries, and distributors.
  • Bad financial results growth rate -5.1% (average between last period year over year growth for revenue and EBITDA), there is slowdown compared to average historical growth rates (-2.0%)
  • Dividend yield for the last twelve months 0.8%
  • Free cash flow yield 1.1% (LTM)
  • Share price is 122.0% higher than minimum and 6.8% lower than maximum for the last 3 years
  • The company is overvalued by EV / LTM EBITDA multiple compared to target level (48.4x vs 25.7x)
  • Fundamental value created in LTM (estimate) -5.4%
Key Financials
Ticker: NKE
Share price, USD: 122.08
Common stocks: 1 561 052 333

Dividend Yield:  0.8%
FCF Yield LTM: 1.1%
EV / LTM EBITDA: 48.4x
Last revenue growth (y/y):  -0.6%
Last growth of EBITDA (y/y):  -9.6%
Historical revenue growth:  3.2%
Historical growth of EBITDA:  -7.2%
Target EV / EBITDA (hist 75% percentile): 25.7x
Fundamental value created in LTM: -5.4%
EV / LTM EBITDA mutiple calculation
Market Cap ($m): 190 573
Net Debt ($m): 3 486
EV (Enterprise Value): 194 059
EBITDA LTM ($m): 4 009
EV / LTM EBITDA: 48.4x

Revenue and EBITDA

Quarterly values ($m)

Change (y/y)

Cash Flow

Free Cash Flow ($m)

Net Debt / Cash and Equivalents ($m)

Share price and dividends

Share price

Payment USD per share

Multiple and potential

EV / LTM EBITDA and 75% percentile

Potential dynamics

Value Creation

Fundamental Value Creation is calculated as ratio of value created in the last period to current market cap of the company.

The fundamental value can be created in two ways:
• cash generation in form of dividend payments or debt reduction or share buybacks
growth of the company enterprise value through improving financial results

The growth of enterprise value in the last period is estimated as product of:
• annualized increase of EBITDA in the last reporting period year over year
• relevant EV/EBITDA multiple (average between actual EV/EBITDA for the company and average general level of 10.0x is applied)

Parameter
#
Formula
Value
    
    
            EBITDA (pre LTM Q)
(1)
1 858
            EBITDA (last Q)
(2)
1 680
            EBITDA LTM
(3)
4 009
    
    
        EBITDA LTM / last Q
(4)
(3) / (2)
2.386
    Gain of EBITDA (mln $)
(5)
( (2)-(1) ) * (4)
-425
    
    
            EV
(6)
194 059
        Mult
(7)
(6) / (3)
48.4x
        Mult common
(8)
const
10.0x
    Mult avg
(9)
avgerage
29.2x
    
    
    Equity+
(10)
(5) * (9)
-12 404
    FCF LTM
(11)
2 131
    
    
Value+
(12)
(10) + (11)
-10 273
Cap
(13)
190 573
    
    
Fundamental value creation
(14)
(12) / (13)
-5.4%

Potential

EBITDA LTM       4 009
 
EBITDA E       3 965
Mult aim       25.7x
 
EV E       101 746
NetDebt corr       3 317
 
Cap E       98 429
Cap       190 573
Growth potential            -48.4%