Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Nike Inc., FCFE calculation
US$ in millions
Based on: 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), 10-K (reporting date: 2019-05-31).
Over the observed period, cash provided by operations exhibits significant fluctuations. Initially, there is a notable decrease from 5,903 million US dollars in May 31, 2019 to 2,485 million US dollars in May 31, 2020. Subsequently, the figure increases sharply to 6,657 million US dollars by May 31, 2021, followed by a decline to 5,188 million in 2022. The value then rises again to 5,841 million in 2023 and continues its upward trend to reach 7,429 million US dollars in May 31, 2024.
Free cash flow to equity (FCFE) demonstrates a different pattern. From May 31, 2019 to May 31, 2020, FCFE increases substantially from 4,453 million to 7,576 million US dollars. After this peak, it declines over the next two years, reaching 4,445 million in 2022. In 2023, the FCFE remains relatively stable at 4,368 million, before rising again to 6,617 million US dollars by May 31, 2024.
Overall, the data indicates volatility in cash flow metrics with noticeable periods of recovery following declines. The cash provided by operations shows a recovery trend post-2020 with peaks in 2021 and 2024. FCFE, while initially increasing sharply in 2020, reflects a more variable pattern with declines and rebounds, ending on an upward trajectory in 2024. This may suggest effective management of cash flows and equity returns in recent periods despite earlier disruptions.
Price to FCFE Ratio, Current
Nike Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,475,990,487 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 6,617) |
| FCFE per share | 4.48 |
| Current share price (P) | 73.56 |
| Valuation Ratio | |
| P/FCFE | 16.41 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| lululemon athletica inc. | 17.85 |
| P/FCFE, Sector | |
| Consumer Durables & Apparel | 16.56 |
| P/FCFE, Industry | |
| Consumer Discretionary | 36.46 |
Based on: 10-K (reporting date: 2024-05-31).
1 Click competitor name to see calculations.
If the company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.
Otherwise, if the company P/FCFE is higher then the P/FCFE of benchmark then company is relatively overvalued.
Price to FCFE Ratio, Historical
Nike Inc., historical P/FCFE calculation, comparison to benchmarks
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | May 31, 2019 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,499,358,944 | 1,529,971,608 | 1,568,555,905 | 1,581,801,224 | 1,559,888,549 | 1,566,888,373 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 6,617) | 4,368) | 4,445) | 5,713) | 7,576) | 4,453) | |
| FCFE per share3 | 4.41 | 2.85 | 2.83 | 3.61 | 4.86 | 2.84 | |
| Share price1, 4 | 71.41 | 107.53 | 111.62 | 159.74 | 98.43 | 86.70 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 16.18 | 37.66 | 39.39 | 44.23 | 20.27 | 30.51 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| lululemon athletica inc. | 36.70 | 124.26 | 44.24 | 72.00 | 67.67 | — | |
| P/FCFE, Sector | |||||||
| Consumer Durables & Apparel | 20.26 | 43.71 | 40.28 | 46.76 | 22.57 | — | |
| P/FCFE, Industry | |||||||
| Consumer Discretionary | 39.60 | 30.84 | 36.19 | 82.92 | 32.04 | — | |
Based on: 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), 10-K (reporting date: 2019-05-31).
1 Data adjusted for splits and stock dividends.
3 2024 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 6,617,000,000 ÷ 1,499,358,944 = 4.41
4 Closing price as at the filing date of Nike Inc. Annual Report.
5 2024 Calculation
P/FCFE = Share price ÷ FCFE per share
= 71.41 ÷ 4.41 = 16.18
6 Click competitor name to see calculations.
- Share Price Trend
- The share price exhibited variability over the analyzed period. Beginning at $86.7 in May 2019, it experienced a moderate increase to $98.43 in May 2020 and then surged significantly to a peak of $159.74 in May 2021. However, post-2021, the share price declined steadily, dropping to $111.62 in May 2022, further to $107.53 in May 2023, and reaching a low of $71.41 by May 2024.
- Free Cash Flow to Equity (FCFE) per Share
- The FCFE per share showed fluctuations but a generally stable trend with some volatility. Starting at $2.84 in May 2019, it nearly doubled to $4.86 in May 2020, then declined to $3.61 in May 2021 and further down to $2.83 in May 2022. It stabilized slightly at $2.85 in May 2023 and rose again to $4.41 in May 2024.
- Price to Free Cash Flow to Equity (P/FCFE) Ratio
- This ratio displayed significant variation corresponding largely to changes in both share price and FCFE. It decreased markedly from 30.51 in May 2019 to 20.27 in May 2020, then surged to a high of 44.23 in May 2021, reflecting the peak share price at that time. Subsequently, it declined gradually to 39.39 in May 2022 and 37.66 in May 2023, before dropping sharply to 16.18 in May 2024. This decline suggests a relatively more attractive valuation in later periods when considering FCFE.
- Overall Insights
- The data indicates a peak in market valuation around May 2021, followed by a downturn. Despite fluctuations, the FCFE per share maintained a degree of stability with a rebound in the most recent period. The sharp decrease in the P/FCFE ratio by May 2024 suggests that the share price has fallen disproportionately compared to the free cash generated for equity holders, possibly signaling a more favorable investment valuation or market concerns affecting share price beyond operational cash flow performance.