Equity Valuation Nike Inc.
Autor(a) principal: | |
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Data de Publicação: | 2023 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/42489 |
Resumo: | This dissertation provides a comprehensive equity valuation analysis of Nike Inc., the renowned leader in the sportswear industry. The valuation was conducted using the FCFF and APV approach, which were deemed most suitable for determining the intrinsic value of Nike’s equity. Moreover, a comparable company and precedent transaction analysis was performed, incorporating multiples such as P/E, EV/EBITDA and EV/Sales, among others. Based on the valuation methods employed, the target price for Nike’s shares as of May 31st, 2023, was determined to be $118.1, using the FCFF, and $121.0 using the APV approach. Moreover, the twelve-month price target is calculated at $130.4, representing the average of the FCFF and APV methodologies for FY24. This target price implies an upside potential of 8.8% compared to the closing price of $119.9 on May 15th , 2023, and a hold recommendation. The analysis considered factors such as continuous revenue growth and anticipated the company’s ability for margin expansions in future periods. Furthermore, the results were compared with an equity report of Stifel Corp. To validate the findings, a sensitivity analysis was conducted, widening the range of the price target and indicating a hold recommendation in the majority of cases. Given the prevailing macroeconomic uncertainties, an upside and downside scenario was presented to compare them with the results of the analysis. |
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Equity Valuation Nike Inc.Equity valuationNikeDCFAPVIntrinsic valueRelative valuationSportswearSports apparel and footwearAvaliação de equidadeValor intrínsecoAvaliação relativaVestuário desportivoArtigos desportivos e calçados desportivosDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis dissertation provides a comprehensive equity valuation analysis of Nike Inc., the renowned leader in the sportswear industry. The valuation was conducted using the FCFF and APV approach, which were deemed most suitable for determining the intrinsic value of Nike’s equity. Moreover, a comparable company and precedent transaction analysis was performed, incorporating multiples such as P/E, EV/EBITDA and EV/Sales, among others. Based on the valuation methods employed, the target price for Nike’s shares as of May 31st, 2023, was determined to be $118.1, using the FCFF, and $121.0 using the APV approach. Moreover, the twelve-month price target is calculated at $130.4, representing the average of the FCFF and APV methodologies for FY24. This target price implies an upside potential of 8.8% compared to the closing price of $119.9 on May 15th , 2023, and a hold recommendation. The analysis considered factors such as continuous revenue growth and anticipated the company’s ability for margin expansions in future periods. Furthermore, the results were compared with an equity report of Stifel Corp. To validate the findings, a sensitivity analysis was conducted, widening the range of the price target and indicating a hold recommendation in the majority of cases. Given the prevailing macroeconomic uncertainties, an upside and downside scenario was presented to compare them with the results of the analysis.Esta dissertação fornece uma análise abrangente de avaliação de patrimônio da Nike Inc., renomada líder na indústria de artigos esportivos. A avaliação foi conduzida utilizando a abordagem FCFF e APV, consideradas as mais adequadas para determinar o valor intrínseco do patrimônio da Nike. Além disso, uma análise comparativa de empresas semelhantes e transações anteriores foi realizada, incorporando múltiplos como P/E, EV/EBITDA e EV/Sales, entre outros. Com base nos métodos de avaliação utilizados, o preço-alvo das ações da Nike em 31 de maio de 2023 foi determinado em $118,1 usando o FCFF e $121,0 usando a abordagem APV. Além disso, o preço-alvo para os próximos doze meses é calculado em $130,4, representando a média das metodologias FCFF e APV para o exercício fiscal de 2024. Esse preço-alvo implica um potencial de valorização de 8,8% em relação ao preço de fechamento de $119,9 em 15 de maio de 2023, e recomenda-se manter as ações. A análise considerou fatores como crescimento contínuo da receita e a expectativa de expansão da margem da empresa em períodos futuros. Além disso, os resultados foram comparados com um relatório de patrimônio da Stifel Corp. Para validar as descobertas, foi realizada uma análise de sensibilidade, ampliando a faixa do preço-alvo e indicando a recomendação de manter a maioria dos casos. Dadas as incertezas macroeconômicas prevalecentes, foram apresentados cenários otimista e pessimista para compará-los com os resultados da análise.Martins, José Carlos TudelaVeritati - Repositório Institucional da Universidade Católica PortuguesaDarmstadt, Paul Rudolf2024-05-29T00:30:52Z2023-06-292023-052023-06-29T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/42489TID:203328965enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-09-06T12:43:51Zoai:repositorio.ucp.pt:10400.14/42489Portal AgregadorONGhttps://www.rcaap.pt/oai/openairemluisa.alvim@gmail.comopendoar:71602024-09-06T12:43:51Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Equity Valuation Nike Inc. |
title |
Equity Valuation Nike Inc. |
spellingShingle |
Equity Valuation Nike Inc. Darmstadt, Paul Rudolf Equity valuation Nike DCF APV Intrinsic value Relative valuation Sportswear Sports apparel and footwear Avaliação de equidade Valor intrínseco Avaliação relativa Vestuário desportivo Artigos desportivos e calçados desportivos Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Equity Valuation Nike Inc. |
title_full |
Equity Valuation Nike Inc. |
title_fullStr |
Equity Valuation Nike Inc. |
title_full_unstemmed |
Equity Valuation Nike Inc. |
title_sort |
Equity Valuation Nike Inc. |
author |
Darmstadt, Paul Rudolf |
author_facet |
Darmstadt, Paul Rudolf |
author_role |
author |
dc.contributor.none.fl_str_mv |
Martins, José Carlos Tudela Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Darmstadt, Paul Rudolf |
dc.subject.por.fl_str_mv |
Equity valuation Nike DCF APV Intrinsic value Relative valuation Sportswear Sports apparel and footwear Avaliação de equidade Valor intrínseco Avaliação relativa Vestuário desportivo Artigos desportivos e calçados desportivos Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Equity valuation Nike DCF APV Intrinsic value Relative valuation Sportswear Sports apparel and footwear Avaliação de equidade Valor intrínseco Avaliação relativa Vestuário desportivo Artigos desportivos e calçados desportivos Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This dissertation provides a comprehensive equity valuation analysis of Nike Inc., the renowned leader in the sportswear industry. The valuation was conducted using the FCFF and APV approach, which were deemed most suitable for determining the intrinsic value of Nike’s equity. Moreover, a comparable company and precedent transaction analysis was performed, incorporating multiples such as P/E, EV/EBITDA and EV/Sales, among others. Based on the valuation methods employed, the target price for Nike’s shares as of May 31st, 2023, was determined to be $118.1, using the FCFF, and $121.0 using the APV approach. Moreover, the twelve-month price target is calculated at $130.4, representing the average of the FCFF and APV methodologies for FY24. This target price implies an upside potential of 8.8% compared to the closing price of $119.9 on May 15th , 2023, and a hold recommendation. The analysis considered factors such as continuous revenue growth and anticipated the company’s ability for margin expansions in future periods. Furthermore, the results were compared with an equity report of Stifel Corp. To validate the findings, a sensitivity analysis was conducted, widening the range of the price target and indicating a hold recommendation in the majority of cases. Given the prevailing macroeconomic uncertainties, an upside and downside scenario was presented to compare them with the results of the analysis. |
publishDate |
2023 |
dc.date.none.fl_str_mv |
2023-06-29 2023-05 2023-06-29T00:00:00Z 2024-05-29T00:30:52Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
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info:eu-repo/semantics/masterThesis |
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masterThesis |
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http://hdl.handle.net/10400.14/42489 TID:203328965 |
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