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

Nike Inc. (NYSE:NKE)

Price to FCFE (P/FCFE)

Intermediate level

Free Cash Flow to Equity (FCFE)

Nike Inc., FCFE 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 
Additions to property, plant and equipment (1,086) (1,119) (1,028) (1,105) (1,143) (963)
Increase (decrease) in notes payable, net 49  (325) 13  327  (67) (63)
Proceeds from borrowings, net of debt issuance costs 6,134  —  —  1,482  981  — 
Repayment of borrowings —  (6) (6) (44) (106) (7)
Payments on capital lease and other financing obligations —  (27) (23) (17) (7) (19)
Free cash flow to equity (FCFE) 7,582  4,426  3,911  4,283  2,754  3,628 

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
FCFE Free cash flow to equity is the cash flow available to Nike Inc.’s equity holders after all operating expenses, interest, and principal payments have been paid and necessary investments in working and fixed capital have been made. Nike Inc.’s FCFE increased from 2018 to 2019 and from 2019 to 2020.

Price to FCFE Ratio, Current

Nike Inc., current P/FCFE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
No. shares of common stock outstanding 1,579,967,074
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions) 7,582 
FCFE per share 4.80
Current share price (P) 134.31
Valuation Ratio
P/FCFE 27.99
Benchmarks
P/FCFE, Competitors1
Colgate-Palmolive Co. 24.95
Estée Lauder Cos. Inc. 25.97
Kimberly-Clark Corp. 15.84
P/FCFE, Sector
Personal Goods 24.97
P/FCFE, Industry
Consumer Goods 23.46

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

1 Click competitor name to see calculations.

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


Price to FCFE Ratio, Historical

Nike Inc., historical P/FCFE 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
No. shares of common stock outstanding1 1,559,888,549 1,566,888,373 1,600,554,538 1,643,195,065 1,677,618,635 1,710,703,178
Selected Financial Data (US$)
Free cash flow to equity (FCFE) (in millions)2 7,582  4,426  3,911  4,283  2,754  3,628 
FCFE per share3 4.86 2.82 2.44 2.61 1.64 2.12
Share price1, 4 98.43 86.70 77.16 59.10 56.99 57.00
Valuation Ratio
P/FCFE5 20.25 30.69 31.58 22.67 34.72 26.88
Benchmarks
P/FCFE, Competitors6
Colgate-Palmolive Co. 24.33 15.36 23.55 25.22 24.23
Estée Lauder Cos. Inc. 18.44 44.37 25.74 14.77 17.72 17.36
Kimberly-Clark Corp. 15.03 23.89 17.67 19.95 19.29
P/FCFE, Sector
Personal Goods 19.56 26.05 25.71 20.91 24.80
P/FCFE, Industry
Consumer Goods 22.98 25.42 19.44 18.44 17.54

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 Data adjusted for splits and stock dividends.

2 See details »

3 2020 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 7,582,000,000 ÷ 1,559,888,549 = 4.86

4 Closing price as at the filing date of Nike Inc.’s Annual Report.

5 2020 Calculation
P/FCFE = Share price ÷ FCFE per share
= 98.43 ÷ 4.86 = 20.25

6 Click competitor name to see calculations.

Valuation ratio Description The company
P/FCFE Price to free cash flow to equity is cash valuation indicator of stockholders’ equity. Nike Inc.’s P/FCFE ratio decreased from 2018 to 2019 and from 2019 to 2020.