Equity Valuation Nike Inc.

• Autor(a) principal: Darmstadt, Paul Rudolf
• 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
• 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

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.