Loading...

Discounted Cash Flow (DCF) Analysis Unlevered


Nike Inc.

Nike Inc. (NKE)

Consumer Cyclical

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 25,313.0027,798.7430,600.8532,375.7034,350.6236,397.9139,116.8442,066.2545,238.0448,648.9952,317.12
Revenue (%)
EBITDA 3,710.894,094.754,837.995,290.195,650.685,124.835,554.596,385.666,867.137,384.927,941.74
EBITDA (%)
EBIT 3,272.973,577.704,232.104,642.684,943.054,378.674,850.495,573.785,994.046,445.996,932.02
EBIT (%)
Depreciation 437.91517.06605.90647.51707.62746.16704.10811.88873.09938.931,009.72
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 5,963.745,142.775,924.325,458.546,179.685,244.944,662.737,365.807,921.188,518.449,160.73
Total Cash (%)
Account Receivables 3,116.033,433.143,356.913,240.813,675.523,497.844,271.564,618.874,967.145,341.665,744.42
Account Receivables (%)
Inventories 3,483.073,947.424,336.144,836.935,056.415,259.505,621.096,044.926,500.716,990.867,517.97
Inventories (%)
Accounts Payable 1,668.131,929.232,129.822,191.832,047.302,278.512,613.002,776.372,985.713,210.833,452.93
Accounts Payable (%)
Capital Expenditure -584.73-875.66-960.87-1,133.15-1,092.35-1,026.42-1,114.83-1,257.78-1,352.62-1,454.60-1,564.28
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 97.81
Diluted Shares Outstanding 1,579.70
Cost of Debt
Tax Rate 16.08
After-tax Cost of Debt -0.75
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.78
Total Debt 3,464.00
Total Equity 154,510.46
Total Capital 157,974.46
Debt Weighting 2.19
Equity Weighting 97.81
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 25,313.0027,798.7430,600.8532,375.7034,350.6236,397.9139,116.8442,066.2545,238.0448,648.9952,317.12
EBITDA 3,710.894,094.754,837.995,290.195,650.685,124.835,554.596,385.666,867.137,384.927,941.74
EBIT 3,272.973,577.704,232.104,642.684,943.054,378.674,850.495,573.785,994.046,445.996,932.02
Tax Rate 24.57%24.01%22.16%18.67%13.22%55.31%16.08%24.86%24.86%24.86%24.86%
EBIAT 2,468.962,718.613,294.093,776.004,289.511,956.994,070.534,188.164,503.954,843.555,208.75
Depreciation 437.91517.06605.90647.51707.62746.16704.10811.88873.09938.931,009.72
Accounts Receivable --317.1176.23116.11-434.71177.68-773.72-347.32-348.26-374.52-402.76
Inventories --464.35-388.72-500.79-219.48-203.09-361.59-423.83-455.79-490.15-527.11
Accounts Payable -261.11200.5962.02-144.54231.21334.50163.37209.34225.12242.10
Capital Expenditure -290.9385.21172.28-40.80-65.9388.41142.9594.84101.99109.68
UFCF 2,906.883,006.233,873.294,273.134,157.612,843.024,062.234,535.214,877.175,244.915,640.37
WACC
PV UFCF 3,909.913,904.103,898.303,892.51
SUM PV UFCF 28,674.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.70
Free cash flow (t + 1) 5,865.99
Terminal Value 158,540.17
Present Value of Terminal Value 109,410.95

Intrinsic Value

Enterprise Value 138,085.28
Net Debt -1,198.73
Equity Value 139,284.01
Shares Outstanding 1,579.70
Equity Value Per Share 88.17