Nike Inc., FCFE calculation

US$ in millions

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.

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

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.

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

	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 price^1, 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.

Nike Inc. (NYSE:NKE)

Price to FCFE (P/FCFE)

Free Cash Flow to Equity (FCFE)

Price to FCFE Ratio, Current

Price to FCFE Ratio, Historical