Enterprise Value to FCFF (EV/FCFF)
Free Cash Flow to The Firm (FCFF)
Nike Inc., FCFF calculation
US$ in millions
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
| Item | Description | The company |
|---|---|---|
| FCFF | Free cash flow to the firm is the cash flow available to the Nike Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. | Nike Inc. FCFF decreased from 2021 to 2022 but then slightly increased from 2022 to 2023. |
Interest Paid, Net of Tax
Nike Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
2 2023 Calculation
Cash paid during the year for interest, net of capitalized interest, tax = Cash paid during the year for interest, net of capitalized interest × EITR
= 347 × 18.20% = 63
Enterprise Value to FCFF Ratio, Current
Nike Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 141,406) |
| Free cash flow to the firm (FCFF) | 5,156) |
| Valuation Ratio | |
| EV/FCFF | 27.43 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| Deckers Outdoor Corp. | 43.78 |
| lululemon athletica inc. | 23.99 |
| EV/FCFF, Sector | |
| Consumer Durables & Apparel | 34.06 |
| EV/FCFF, Industry | |
| Consumer Discretionary | 32.35 |
Based on: 10-K (reporting date: 2023-05-31).
1 Click competitor name to see calculations.
If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.
Enterprise Value to FCFF Ratio, Historical
Nike Inc., historical EV/FCFF calculation, comparison to benchmarks
| May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | May 31, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 162,776) | 171,515) | 248,616) | 154,410) | 134,665) | 122,064) | |
| Free cash flow to the firm (FCFF)2 | 5,156) | 4,694) | 6,203) | 1,511) | 4,912) | 4,042) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 31.57 | 36.54 | 40.08 | 102.21 | 27.41 | 30.20 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| Deckers Outdoor Corp. | 24.43 | 52.43 | 14.55 | 18.97 | 11.58 | 10.02 | |
| lululemon athletica inc. | 120.71 | 42.97 | 69.99 | 64.80 | 35.42 | — | |
| EV/FCFF, Sector | |||||||
| Consumer Durables & Apparel | 36.01 | 38.04 | 40.42 | 85.35 | 27.23 | — | |
| EV/FCFF, Industry | |||||||
| Consumer Discretionary | 32.34 | 55.69 | 66.32 | 52.28 | 30.93 | — | |
Based on: 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31), 10-K (reporting date: 2018-05-31).
3 2023 Calculation
EV/FCFF = EV ÷ FCFF
= 162,776 ÷ 5,156 = 31.57
4 Click competitor name to see calculations.
| Valuation ratio | Description | The company |
|---|---|---|
| EV/FCFF | Enterprise value to free cash flow to the firm is whole company valuation indicator. | Nike Inc. EV/FCFF ratio decreased from 2021 to 2022 and from 2022 to 2023. |