Price to FCFE (P/FCFE)
Free Cash Flow to Equity (FCFE)
Nike Inc., FCFE calculation
US$ in millions
Based on: 10-K (reporting date: 2026-05-31), 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).
Analysis of the financial trajectories from 2021 to 2026 indicates a period of volatility followed by a projected sharp contraction in liquidity generation. Both cash provided by operations and free cash flow to equity exhibit a correlated movement, peaking in 2024 before experiencing significant declines in the subsequent years.
- Operational Cash Flow Trends
- Cash provided by operations experienced a decline from 6,657 million US$ in 2021 to 5,188 million US$ in 2022, followed by a recovery phase that culminated in a peak of 7,429 million US$ in 2024. However, a substantial downward shift is projected for the final two periods, with values dropping to 3,698 million US$ in 2025 and 2,868 million US$ in 2026.
- Free Cash Flow to Equity (FCFE) Dynamics
- FCFE mirrored the operational trend, starting at 5,765 million US$ in 2021 and reaching a peak of 6,617 million US$ in 2024. A sharp contraction is observed in the projections for 2025 and 2026, where FCFE falls to 2,268 million US$ and 2,184 million US$, respectively. This represents a significant reduction in the cash available to equity holders compared to the 2024 peak.
- Correlation and Cash Conversion
- A strong positive correlation is maintained between operational cash flow and FCFE throughout the analyzed period. The variance between these two metrics remains relatively stable, suggesting that capital expenditures and net debt movements have not deviated drastically in proportion to operating cash flow, despite the overall decline in absolute values projected for 2025 and 2026.
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Price to FCFE Ratio, Current
Nike Inc., current P/FCFE calculation, comparison to benchmarks
| No. shares of common stock outstanding | 1,483,498,703 |
| Selected Financial Data (US$) | |
| Free cash flow to equity (FCFE) (in millions) | 2,184) |
| FCFE per share | 1.47 |
| Current share price (P) | 41.53 |
| Valuation Ratio | |
| P/FCFE | 28.21 |
| Benchmarks | |
| P/FCFE, Competitors1 | |
| lululemon athletica inc. | 15.16 |
| P/FCFE, Sector | |
| Consumer Durables & Apparel | 19.62 |
| P/FCFE, Industry | |
| Consumer Discretionary | 49.68 |
Based on: 10-K (reporting date: 2026-05-31).
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, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| No. shares of common stock outstanding1 | 1,483,498,703 | 1,476,903,492 | 1,499,358,944 | 1,529,971,608 | 1,568,555,905 | 1,581,801,224 | |
| Selected Financial Data (US$) | |||||||
| Free cash flow to equity (FCFE) (in millions)2 | 2,184) | 2,268) | 6,617) | 4,372) | 4,430) | 5,765) | |
| FCFE per share3 | 1.47 | 1.54 | 4.41 | 2.86 | 2.82 | 3.64 | |
| Share price1, 4 | 42.77 | 72.98 | 71.41 | 107.53 | 111.62 | 159.74 | |
| Valuation Ratio | |||||||
| P/FCFE5 | 29.05 | 47.52 | 16.18 | 37.63 | 39.52 | 43.83 | |
| Benchmarks | |||||||
| P/FCFE, Competitors6 | |||||||
| lululemon athletica inc. | 19.98 | 26.02 | 36.70 | 124.26 | 44.24 | 72.00 | |
| P/FCFE, Sector | |||||||
| Consumer Durables & Apparel | — | 38.68 | 20.26 | 43.67 | 40.39 | 46.38 | |
| P/FCFE, Industry | |||||||
| Consumer Discretionary | — | 46.02 | 39.73 | 30.88 | 36.45 | 83.41 | |
Based on: 10-K (reporting date: 2026-05-31), 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).
1 Data adjusted for splits and stock dividends.
3 2026 Calculation
FCFE per share = FCFE ÷ No. shares of common stock outstanding
= 2,184,000,000 ÷ 1,483,498,703 = 1.47
4 Closing price as at the filing date of Nike Inc. Annual Report.
5 2026 Calculation
P/FCFE = Share price ÷ FCFE per share
= 42.77 ÷ 1.47 = 29.05
6 Click competitor name to see calculations.
An analysis of valuation metrics from 2021 to 2026 indicates a significant decline in equity value accompanied by substantial volatility in free cash flow to equity (FCFE) per share. The valuation profile has transitioned from a period of high premiums to an erratic state, reflecting a decoupling between market pricing and cash flow generation in the latter years of the period.
- Share Price Trend
- A consistent and severe downward trajectory is observed, with the share price falling from 159.74 in 2021 to 42.77 in 2026. The most pronounced declines occurred between 2023 and 2024 and again between 2025 and 2026, resulting in an overall reduction of approximately 73% of the share value.
- FCFE per Share Performance
- Cash flow generation exhibits significant instability. Following a decrease from 3.64 in 2021 to 2.82 in 2022, a temporary peak was reached in 2024 at 4.41. This was followed by a sharp contraction in 2025 and 2026, where values dropped to 1.54 and 1.47 respectively, indicating a marked deterioration in the capacity to generate surplus cash for equity holders.
- Price to FCFE (P/FCFE) Ratio Dynamics
- The P/FCFE ratio demonstrates high volatility and inconsistent valuation multiples. A steady decline is noted from 2021 (43.83) to 2023 (37.63), followed by a sharp compression to 16.18 in 2024, driven by the convergence of a falling share price and peak FCFE. In 2025, the ratio spiked to its highest level of 47.52, as FCFE per share collapsed while the share price remained relatively flat. By 2026, the ratio moderated to 29.05, as the market price further corrected downward to reflect the diminished cash flow levels.
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