Apparel - Footwear & Accessories · NYSE
Current Price
$44.39
Intrinsic Value
Use the calculator below to estimate
Run a full DCF analysis on NIKE, Inc. with auto-filled fundamentals, adjustable assumptions, and sensitivity heatmap.
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells men's, women's, and kids athletic footwear, apparel, equipment, and accessories worldwide. The company provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. In addition, it sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities under the NIKE brand; and various plastic products to other manufacturers. The company markets apparel with licensed college and professional team, and league logos, as well as sells sports apparel. Additionally, it licenses unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. The company sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
ROIC (TTM)
7.9%
ROE (TTM)
16.4%
FCF Yield
1.60%
Based on trailing twelve-month data, NKE shows a free cash flow per share of N/A and a ROIC of 7.9%, key inputs for stock valuation using the DCF method. The P/FCF ratio of N/A and FCF yield of 1.60% are important context metrics when evaluating NKE's stock valuation relative to peers.
The intrinsic value of NKE depends on assumptions about future growth rate, discount rate (WACC), and terminal value. A DCF model discounts projected free cash flows back to present value — small changes in WACC can shift the estimate by 20% or more, which is why sensitivity analysis is essential.
Whether NKE is undervalued depends on comparing the DCF-derived intrinsic value to the current market price of $44.39. A positive margin of safety (intrinsic value above market price) suggests potential undervaluation, but the degree of confidence depends on the reliability of your growth and discount rate assumptions.
To perform a DCF valuation on NIKE, Inc.: (1) Start with the trailing free cash flow per share as the base, (2) project future FCF growth over 5-10 years based on Apparel - Footwear & Accessories industry trends and company fundamentals, (3) apply a discount rate (WACC) reflecting NKE's risk profile, and (4) add a terminal value for cash flows beyond the projection period.
DCF (Discounted Cash Flow) estimates what a company is worth today based on its future cash generation. For NIKE, Inc., this means projecting how much free cash flow the Apparel - Footwear & Accessories will produce over the next 5-10 years, then discounting those amounts to today's dollars. NKE's ROIC of 7.9% suggests the company may face challenges generating returns above its cost of capital.
WACC (Weighted Average Cost of Capital) is the discount rate in a DCF model — it reflects the minimum return investors require. For NKE, the capital structure and equity risk premium determine WACC. A 1% increase in WACC typically reduces the intrinsic value by 10-15%.
