A Financial Valuation of Nike, Inc.

This research focuses on Nike, Inc., an American multinational corporation and global
leader in the design, marketing, and sale of athletic footwear, apparel, and equipment.
The study executes a financial valuation of Nike with the objective of estimating its
intrinsic value and comparing it with the market value as of May 31st, 2023. The
analysis combines a review of the company's overall strategic positioning in the
industry and its historical financial performance.
The methodology involved the reorganization of financial statements, the calculation
of key financial metrics (NOPLAT, FCF, ROIC), the estimation of the cost of capital
(WACC) using CAPM, and the application of valuation models based on discounted
cash flows (Enterprise DCF, APV, DEP).
The results imply that, as of May 31st, 2023, Nike's estimated intrinsic value was
between $54.94 and $59.23 per share. Comparing this to the market price of $105.26
on the same date, the analysis concludes that Nike shares were significantly overvalued.
The sensitivity analysis highlighted the vulnerability of the valuation to changes in the
market risk premium and the perpetual growth rate. It is concluded that, despite Nike's
strong market position, effective management of external risks, and maintenance of
financial discipline are crucial to its future value.