Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Nike Inc. (NYSE:NKE)

Enterprise Value to FCFF (EV/FCFF)

Intermediate level

Free Cash Flow to The Firm (FCFF)

Nike Inc., FCFF calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Net income 2,539  4,029  1,933  4,240  3,760  3,273 
Net noncash charges 1,191  1,312  1,540  541  916  1,151 
Changes in certain working capital components and other assets and liabilities (1,245) 562  1,482  (1,141) (1,580) 256 
Cash provided by operations 2,485  5,903  4,955  3,640  3,096  4,680 
Cash paid during the year for interest, net of capitalized interest, net of tax1 112  128  115  85  57  41 
Additions to property, plant and equipment (1,086) (1,119) (1,028) (1,105) (1,143) (963)
Non-cash additions to property, plant and equipment (121) (160) (294) (266) (252) (206)
Free cash flow to the firm (FCFF) 1,390  4,752  3,748  2,354  1,758  3,552 

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

Item Description The company
FCFF Free cash flow to the firm is the cash flow available to the Nike Inc.’s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made. Nike Inc.’s FCFF increased from 2018 to 2019 but then decreased significantly from 2019 to 2020.

Interest Paid, Net of Tax

Nike Inc., interest paid, net of tax calculation

US$ in millions

Microsoft Excel LibreOffice Calc
12 months ended: May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Effective Income Tax Rate (EITR)
EITR1 20.20% 16.10% 8.30% 13.20% 18.70% 22.20%
Interest Paid, Net of Tax
Cash paid during the year for interest, net of capitalized interest, before tax 140  153  125  98  70  53 
Less: Cash paid during the year for interest, net of capitalized interest, tax2 28  25  10  13  13  12 
Cash paid during the year for interest, net of capitalized interest, net of tax 112  128  115  85  57  41 

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 See details »

2 2020 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
= 140 × 20.20% = 28


Enterprise Value to FCFF Ratio, Current

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

Microsoft Excel LibreOffice Calc
Selected Financial Data (US$ in millions)
Enterprise value (EV) 201,700 
Free cash flow to the firm (FCFF) 1,390 
Valuation Ratio
EV/FCFF 145.14
Benchmarks
EV/FCFF, Competitors1
Colgate-Palmolive Co. 22.01
Estée Lauder Cos. Inc. 64.55
Kimberly-Clark Corp. 20.68
EV/FCFF, Sector
Personal Goods 47.80
EV/FCFF, Industry
Consumer Goods 33.50

Based on: 10-K (filing date: 2020-07-24).

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

Microsoft Excel LibreOffice Calc
May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016 May 31, 2015
Selected Financial Data (US$ in millions)
Enterprise value (EV)1 154,410  134,665  122,064  94,736  92,205  92,846 
Free cash flow to the firm (FCFF)2 1,390  4,752  3,748  2,354  1,758  3,552 
Valuation Ratio
EV/FCFF3 111.11 28.34 32.57 40.24 52.45 26.14
Benchmarks
EV/FCFF, Competitors4
Colgate-Palmolive Co. 21.37 24.70 22.90 25.95 26.72
Estée Lauder Cos. Inc. 46.44 38.44 24.87 29.94 26.27 20.41
Kimberly-Clark Corp. 19.40 28.96 19.61 19.26 18.75
EV/FCFF, Sector
Personal Goods 38.75 29.13 26.23 28.54 29.40
EV/FCFF, Industry
Consumer Goods 33.36 26.56 25.20 39.29 39.41

Based on: 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21), 10-K (filing date: 2015-07-23).

1 See details »

2 See details »

3 2020 Calculation
EV/FCFF = EV ÷ FCFF
= 154,410 ÷ 1,390 = 111.11

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.’s EV/FCFF ratio decreased from 2018 to 2019 but then increased from 2019 to 2020 exceeding 2018 level.