Nike

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker Analyst Analyst Email
DA Davidson Andrew Burns aburns@dadco.com
Canaccord Genuity Camilo Lyon clyon@canaccordgenuity.com
Credit Suisse Christian Buss christian.buss@credit-suisse.com
Susquehanna Financial Group Christopher Svezia christopher.svezia@sig.com
BB&T Capital Markets Corinna L. Freedman cfreedman@bbandtcm.com
Jefferies Edward Plank eplank@jefferies.com
Brean Capital, LLC Eric B. Tracy etracy@breancapital.com
Piper Jaffray Erinn E. Murphy erinn.e.murphy@pjc.com
Hilliard Lyons Jeffrey S. Thomison jthomison@hilliard.com
Stifel Nicolaus Jim Duffy jduffy@stifel.com
Cowen & Company John Kernan john.kernan@cowen.com
Telsey Advisory Group Kelly Chen kchen@telseygroup.com
B Riley & Co Mitch Kummetz mkummetz@brileyco.com
Evercore ISI Omar Saad omar.saad@evercoreisi.com
Nomura Research Robert S. Drbul robert.drbul@nomura.com
CRT Capital Group Sam Poser sposer@sterneageecrt.com
Buckingham Research Scott Krasik skrasik@buckresearch.com
FBR Capital Markets & Co Susan Anderson sanderson@fbr.com
Wells Fargo Securities Tom Nikic tom.nikic@wellsfargo.com

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Primary Input Data

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Derived Input Data

Derived Input

Label

2015 Value

2016
Value

Equational Form
Net Operating Profit Less Adjusted Taxes NOPLAT  2,688 2,701 NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)
Free Cash Flow FCF 2,964 2,775 FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS
Tax Shield TS 6 8 TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income
Invested Capital IC 16,717 17,578 IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital
Return on Invested Capital ROIC 16.08% 15.37% ROIC\,=\,\frac { NOPLAT }{ IC }
Net Investment NetInv 2,869 1,545 NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation
Investment Rate IR  106.75%  57.20% IR\,=\,\frac {NetInv}{NOPLAT}
Weighted Average Cost of Capital
 WACCMarket  22.80% 13.21% WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)
 WACCBook    8.52%  8.86%
Enterprise value
 EVMarket 132,600  80,309 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook  132,300   80,374
Long-Run Growth
 g = IR x ROIC
   17.16%   8.79% Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
g = % \Delta GDP    2.50%   2.50%
Margin from Operations M   13.08%  12.37% M\,\,=\,\,\frac{EBIT}{SALES}
Depreciation/Amortization Rate D   13.11%  14.13% D\,\,=\,\,\frac{D+A}{EBITDA}

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form

Observed Value

Single-stage

multiple g solution

Two-stage valuation

model g solution
12/31/2015 12/31/2016 12/31/2015 12/31/2016 12/31/2015 12/31/2016

EV/SALES 

\frac {EV}{Sales} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)

  4.19  2.39  23.77%  12.61%  23.23%  12.88%

EV/EBITDA

\frac {EV}{EBITDA} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)

 27.86 16.59 23.77% 12.61% 23.23% 12.88%

EV/NOPLAT

\frac {EV}{NOPLAT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}

 49.33 29.73 23.77% 12.61% 23.23% 12.88%

EV/FCFOPS

\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

 44.73 28.94 23.77% 12.61% 23.23% 12.88%

EV/EBIT

\frac {EV}{EBIT} \,= \,\frac{ROIC\,  -\,  g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)

 32.07 19.33 23.77% 12.61% 23.23%  12.88%

EV/IC

\frac {EV}{IC} \,= \,\frac{ROIC\,  -\,  g}{WACC\,-\,g}

 7.93 4.57 23.77% 12.61% 23.23% 12.88%

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