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: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
- Cash provided by operations
- The cash generated from operational activities demonstrated a significant increase from 2020 to 2021, rising sharply from $2,485 million to $6,657 million. In the following year, 2022, this figure declined to $5,188 million but then recovered in 2023 to $5,841 million. A further increase occurred in 2024, peaking at $7,429 million, before falling considerably to $3,698 million in 2025. Overall, the trend fluctuates with notable peaks in 2021 and 2024, indicating variability in operational cash flow generation over the period.
- Free cash flow to the firm (FCFF)
- This metric followed a similar pattern to cash provided by operations, with a sharp rise from $1,511 million in 2020 to $6,203 million in 2021. It then decreased to $4,694 million in 2022, slightly increased to $5,156 million in 2023, and grew again in 2024 to $6,941 million. In 2025, FCFF dropped to $3,590 million. The overall trajectory shows volatility, with strong increases followed by declines, mirroring operational cash flow trends and implying corresponding fluctuations in the company's capacity to generate free cash flow.
Interest Paid, Net of Tax
Nike Inc., interest paid, net of tax calculation
US$ in millions
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
2 2025 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
= 389 × 17.10% = 67
- Effective Income Tax Rate (EITR)
- The effective income tax rate exhibited considerable fluctuations over the six-year period. It started at 20.2% in 2020, then declined to 17.7% in 2021, followed by a significant drop to 9.1% in 2022. After this low point, it rose sharply to 18.2% in 2023, decreased again to 14.9% in 2024, and finally increased to 17.1% in 2025. The pattern suggests variability possibly influenced by changes in taxable income, tax regulations, or the impact of tax planning strategies throughout this timeframe.
- Cash Paid During the Year for Interest, Net of Capitalized Interest, Net of Tax (US$ in millions)
- The cash paid for interest showed a consistent upward trend from 2020 through 2024, beginning at 112 million USD and increasing to 324 million USD over five years. In 2025, this figure slightly decreased to 322 million USD, indicating a stabilization after years of growth. This steady increase over time could indicate rising debt levels, increased interest rates, or both, reflecting changes in the company's financing activities or capital structure.
Enterprise Value to FCFF Ratio, Current
Nike Inc., current EV/FCFF calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 7,119,647) |
| Free cash flow to the firm (FCFF) | 3,590) |
| Valuation Ratio | |
| EV/FCFF | 1,982.92 |
| Benchmarks | |
| EV/FCFF, Competitors1 | |
| lululemon athletica inc. | 16.13 |
| EV/FCFF, Sector | |
| Consumer Durables & Apparel | 833.28 |
| EV/FCFF, Industry | |
| Consumer Discretionary | 92.78 |
Based on: 10-K (reporting date: 2025-05-31).
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, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 7,169,759) | 104,396) | 162,776) | 171,515) | 248,616) | 154,410) | |
| Free cash flow to the firm (FCFF)2 | 3,590) | 6,941) | 5,156) | 4,694) | 6,203) | 1,511) | |
| Valuation Ratio | |||||||
| EV/FCFF3 | 1,996.88 | 15.04 | 31.57 | 36.54 | 40.08 | 102.21 | |
| Benchmarks | |||||||
| EV/FCFF, Competitors4 | |||||||
| lululemon athletica inc. | 24.76 | 35.33 | 120.71 | 42.97 | 69.99 | 64.80 | |
| EV/FCFF, Sector | |||||||
| Consumer Durables & Apparel | — | 18.95 | 36.97 | 37.72 | 42.57 | 94.28 | |
| EV/FCFF, Industry | |||||||
| Consumer Discretionary | — | 41.92 | 33.08 | 50.80 | 60.24 | 46.23 | |
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 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).
3 2025 Calculation
EV/FCFF = EV ÷ FCFF
= 7,169,759 ÷ 3,590 = 1,996.88
4 Click competitor name to see calculations.
- Enterprise Value (EV)
- Over the observed periods, enterprise value exhibited considerable fluctuations. Initially, EV increased sharply from 154,410 million USD in 2020 to a peak of 248,616 million USD in 2021. This was followed by a notable decline over the next three years, reaching 104,396 million USD in 2024. However, a dramatic surge occurred in 2025, with EV increasing exponentially to approximately 7,169,759 million USD, representing an extraordinary rise that significantly deviates from prior trends.
- Free Cash Flow to the Firm (FCFF)
- Free cash flow generally trended upward from 2020 through 2024, increasing from 1,511 million USD to a peak of 6,941 million USD in 2024. This growth indicates improving cash generation capability within the period. Despite this positive trend, there was a decline in 2025, where FCFF fell to 3,590 million USD, showing a substantial reduction compared to the previous year.
- EV/FCFF Ratio
- The EV to FCFF ratio decreased consistently from 102.21 in 2020 to 15.04 in 2024, reflecting an improving valuation in terms of cash flow generation. This trend suggests that the enterprise value was becoming more reasonable relative to the free cash flow. However, in 2025, the ratio surged dramatically to 1,996.88, a stark reversal indicating either a disproportionate increase in EV relative to FCFF or an anomaly in the underlying data.
- Overall Insights
- The data reveals a stable improvement in free cash flow generation alongside a declining EV/FCFF ratio through 2024, suggesting enhanced operational performance and valuation efficiency. The sudden and significant increase in enterprise value and the accompanying spike in the EV/FCFF ratio in 2025 are striking departures from previous trends. This divergence may warrant further investigation to ascertain underlying causes, as it reflects unusual market valuation or potential data irregularities. Additionally, the decrease in free cash flow in the final year adds complexity to the financial profile, highlighting potential challenges or shifts in operational cash flow dynamics.