Valuation of Nike Inc.
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/28294 |
Resumo: | Nike is one of the most well- known companies in the world and the leader in the sportswear and athletic footwear industry. Since it is such an important company in the industry, it is important to understand its value and whether it represents a good investment The valuation models used in this project are divided into two different approaches: absolute valuation using DCF model and EVA model, and relative valuation using multiples model. Analysing the financial ratios, we found that Nike has increased its debt and that the company's ROE has increased due to leverage. The company had a return on invested capital (ROIC) that exceeded WACC in all years analysed, creating value consistently. Nike also exhibits good liquidity as it is able to continuously pay its current liabilities. Through this analysis, it is clear that although the pandemic crisis had a strong negative impact on the industry and the company itself, Nike was able to respond excellently in the following year, unlike some of its competitors. The objective of this study was to estimate the value of Nike stock on May 31, 2021, with the market price at that time being $136. Using the DCF and EVA models, the same stock price of $136,41 was determined, which is quite close to the market price and indicates that the company is valued correctly. Based on the results obtained by the different models and the financial analysis performed, investors are recommended to hold the stock. |
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Valuation of Nike Inc.NikeDCF Discounted Cash Flow --EVAMultiplesSportswear and athletic footwearAvaliação de empresas -- Business valuationMúltiplosRoupa e calçado desportivoNike is one of the most well- known companies in the world and the leader in the sportswear and athletic footwear industry. Since it is such an important company in the industry, it is important to understand its value and whether it represents a good investment The valuation models used in this project are divided into two different approaches: absolute valuation using DCF model and EVA model, and relative valuation using multiples model. Analysing the financial ratios, we found that Nike has increased its debt and that the company's ROE has increased due to leverage. The company had a return on invested capital (ROIC) that exceeded WACC in all years analysed, creating value consistently. Nike also exhibits good liquidity as it is able to continuously pay its current liabilities. Through this analysis, it is clear that although the pandemic crisis had a strong negative impact on the industry and the company itself, Nike was able to respond excellently in the following year, unlike some of its competitors. The objective of this study was to estimate the value of Nike stock on May 31, 2021, with the market price at that time being $136. Using the DCF and EVA models, the same stock price of $136,41 was determined, which is quite close to the market price and indicates that the company is valued correctly. Based on the results obtained by the different models and the financial analysis performed, investors are recommended to hold the stock.A Nike é uma das empresas mais conhecidas do mundo e líder na indústria do vestuário e calçado desportivo. Sendo uma empresa tão importante no sector, é importante compreender o seu valor e se representa um bom investimento. Os modelos de avaliação utilizados neste projeto estão divididos em duas abordagens diferentes: avaliação absoluta utilizando o modelo DCF e o modelo EVA, e avaliação relativa utilizando o modelo dos múltiplos. Analisando os rácios financeiros, verificámos que a Nike aumentou a sua dívida e que o ROE da empresa aumentou devido ao efeito de alavancagem. A empresa teve um retorno do capital investido que excedeu o WACC em todos os anos analisados, criando valor de forma consistente. A Nike também apresenta boa liquidez, uma vez que é capaz de pagar continuamente o seu passivo corrente. Através desta análise verificou-se que apesar da crise pandémica ter causado um forte impacto negativo no setor e na empresa em si, a Nike foi capaz de responder de forma excelente no ano seguinte, ao contrário de alguns concorrentes. O objetivo deste estudo era estimar o valor das ações da Nike em 31 de maio de 2021, sendo o preço de mercado nessa altura de $136. Utilizando os modelos DCF e EVA, foi determinado o mesmo preço das ações de $136,41 o que está bastante próximo do preço de mercado e indica que a empresa estava avaliada corretamente. Com base nos resultados obtidos pelos diferentes modelos e na análise financeira realizada, recomenda-se aos investidores que detenham as ações.2023-03-14T10:53:16Z2023-01-25T00:00:00Z2023-01-252022-10info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10071/28294TID:203232151engFreixo, Miguel Carlosinfo: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:RCAAP2023-11-09T17:40:28Zoai:repositorio.iscte-iul.pt:10071/28294Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:18:43.529764Repositório 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 |
Valuation of Nike Inc. |
title |
Valuation of Nike Inc. |
spellingShingle |
Valuation of Nike Inc. Freixo, Miguel Carlos Nike DCF Discounted Cash Flow -- EVA Multiples Sportswear and athletic footwear Avaliação de empresas -- Business valuation Múltiplos Roupa e calçado desportivo |
title_short |
Valuation of Nike Inc. |
title_full |
Valuation of Nike Inc. |
title_fullStr |
Valuation of Nike Inc. |
title_full_unstemmed |
Valuation of Nike Inc. |
title_sort |
Valuation of Nike Inc. |
author |
Freixo, Miguel Carlos |
author_facet |
Freixo, Miguel Carlos |
author_role |
author |
dc.contributor.author.fl_str_mv |
Freixo, Miguel Carlos |
dc.subject.por.fl_str_mv |
Nike DCF Discounted Cash Flow -- EVA Multiples Sportswear and athletic footwear Avaliação de empresas -- Business valuation Múltiplos Roupa e calçado desportivo |
topic |
Nike DCF Discounted Cash Flow -- EVA Multiples Sportswear and athletic footwear Avaliação de empresas -- Business valuation Múltiplos Roupa e calçado desportivo |
description |
Nike is one of the most well- known companies in the world and the leader in the sportswear and athletic footwear industry. Since it is such an important company in the industry, it is important to understand its value and whether it represents a good investment The valuation models used in this project are divided into two different approaches: absolute valuation using DCF model and EVA model, and relative valuation using multiples model. Analysing the financial ratios, we found that Nike has increased its debt and that the company's ROE has increased due to leverage. The company had a return on invested capital (ROIC) that exceeded WACC in all years analysed, creating value consistently. Nike also exhibits good liquidity as it is able to continuously pay its current liabilities. Through this analysis, it is clear that although the pandemic crisis had a strong negative impact on the industry and the company itself, Nike was able to respond excellently in the following year, unlike some of its competitors. The objective of this study was to estimate the value of Nike stock on May 31, 2021, with the market price at that time being $136. Using the DCF and EVA models, the same stock price of $136,41 was determined, which is quite close to the market price and indicates that the company is valued correctly. Based on the results obtained by the different models and the financial analysis performed, investors are recommended to hold the stock. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-10 2023-03-14T10:53:16Z 2023-01-25T00:00:00Z 2023-01-25 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/28294 TID:203232151 |
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http://hdl.handle.net/10071/28294 |
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TID:203232151 |
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eng |
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eng |
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info:eu-repo/semantics/openAccess |
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openAccess |
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application/pdf |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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