Stock Analysis on Net

Nike Inc. (NYSE:NKE)

Enterprise Value to EBITDA (EV/EBITDA) 

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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Nike Inc., EBITDA calculation

US$ in millions

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12 months ended: May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Net income 5,727  2,539  4,029  1,933  4,240  3,760 
Add: Income tax expense 934  348  772  2,392  646  863 
Earnings before tax (EBT) 6,661  2,887  4,801  4,325  4,886  4,623 
Add: Interest expense 296  151  131  124  86  31 
Earnings before interest and tax (EBIT) 6,957  3,038  4,932  4,449  4,972  4,654 
Add: Depreciation 744  721  705  747  706  649 
Add: Amortization, impairment and other 53  398  15  27  10  13 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,754  4,157  5,652  5,223  5,688  5,316 

Based on: 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), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

Item Description The company
EBITDA To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital. Nike Inc. EBITDA decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

Enterprise Value to EBITDA Ratio, Current

Nike Inc., current EV/EBITDA calculation, comparison to benchmarks

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Selected Financial Data (US$ in millions)
Enterprise value (EV) 178,339 
Earnings before interest, tax, depreciation and amortization (EBITDA) 7,754 
Valuation Ratio
EV/EBITDA 23.00
Benchmarks
EV/EBITDA, Industry
Consumer Discretionary 16.46

Based on: 10-K (reporting date: 2021-05-31).

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.


Enterprise Value to EBITDA Ratio, Historical

Nike Inc., historical EV/EBITDA calculation, comparison to benchmarks

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 248,616  154,410  134,665  122,064  94,736  92,205 
Earnings before interest, tax, depreciation and amortization (EBITDA)2 7,754  4,157  5,652  5,223  5,688  5,316 
Valuation Ratio
EV/EBITDA3 32.06 37.14 23.83 23.37 16.66 17.34
Benchmarks
EV/EBITDA, Industry
Consumer Discretionary 20.17 26.12 17.24 15.01 14.87

Based on: 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), 10-K (reporting date: 2017-05-31), 10-K (reporting date: 2016-05-31).

1 See details »

2 See details »

3 2021 Calculation
EV/EBITDA = EV ÷ EBITDA
= 248,616 ÷ 7,754 = 32.06

Valuation ratio Description The company
EV/EBITDA Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock. Nike Inc. EV/EBITDA ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021.