Nike Inc., FCFE calculation

USD $ in millions

	12 months ended	May 31, 2018	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013
	Net income
	Net noncash charges
	Changes in certain working capital components and other assets and liabilities
	Cash provided by operations
	Additions to property, plant and equipment
	Disposals of property, plant and equipment
	Net proceeds from long-term debt issuance
	Long-term debt payments, including current portion
	Increase (decrease) in notes payable
	Payments on capital lease and other financing obligations
	Free cash flow to equity (FCFE)

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 2016 to 2017 but then slightly declined from 2017 to 2018.

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

No. shares of common stock outstanding
Selected Financial Data (USD $)
Free cash flow to equity (FCFE) (in millions)
FCFE per share
Current share price (P)
Ratio
P/FCFE
Benchmarks
P/FCFE, Competitors
Colgate-Palmolive Co.
Kimberly-Clark Corp.
P/FCFE, Sector
Personal Goods
P/FCFE, Industry
Consumer Goods

If company P/FCFE is lower then the P/FCFE of benchmark then company is relatively undervalued.

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

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

		May 31, 2018	May 31, 2017	May 31, 2016	May 31, 2015	May 31, 2014	May 31, 2013
	No. shares of common stock outstanding¹
	Selected Financial Data (USD $)
	Free cash flow to equity (FCFE) (in millions)²
	FCFE per share⁴
	Share price^1, 3
	Ratio
	P/FCFE⁵
	Benchmarks
	P/FCFE, Competitors
	Colgate-Palmolive Co.
	Kimberly-Clark Corp.
	P/FCFE, Sector
	Personal Goods
	P/FCFE, Industry
	Consumer Goods

¹ Data adjusted for splits and stock dividends.

³ Close price on the filing date of Nike Inc.’s Annual Report.

2018 Calculations

⁴ FCFE per share = FCFE ÷ No. shares of common stock outstanding
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⁵ P/FCFE = Share price ÷ FCFE per share
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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 declined from 2016 to 2017 but then increased from 2017 to 2018 not reaching 2016 level.

	Nike Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Nike Inc. (NKE)

Price to FCFE (P/FCFE)