Equity 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/10400.14/41387 |
Resumo: | With a leading position in the sportswear industry and one of the most valuable and reputable brands worldwide, Nike, Inc. is the world’s largest designer and manufacturer of athletic footwear and apparel company. Nike has kept its dominant market share position and its operations thriving despite the recent unfavorable macroeconomic situation, which was brought on by a global pandemic and escalating inflationary pressures. However, the stock market downturn of 2022 has had an impact on Nike's share price, with the company's shares declining by more than 38% since November of 2021. Therefore, the goal of this dissertation is to determine Nike, Inc.’s target share price for the end of the firm’s fiscal year of 2023 (31/05/2023) and provide a detailed investment recommendation based on the intrinsic value of Nike. A thorough research of Nike's industry, projections for the forthcoming macroeconomic environment, as well as a profound company research, were the pillars sustaining this valuation. Based on the conciliation of the author’s assumptions with the best firm valuation practices, the target value per Nike share was set at $108.68, derived from a WACCbased DCF approach, meaning a 2.6% upside potential. In the end, the results obtained were discussed through a sensitivity analysis and compared to other analyst’s forecasts, which, considering the uncertainty regarding the current economic context, supported a hold recommendation. |
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Equity valuation of Nike, Inc.NikeEquity valuationDCFApparel and footwearAvaliação de empresasRoupa e calçadoDomínio/Área Científica::Ciências Sociais::Economia e GestãoWith a leading position in the sportswear industry and one of the most valuable and reputable brands worldwide, Nike, Inc. is the world’s largest designer and manufacturer of athletic footwear and apparel company. Nike has kept its dominant market share position and its operations thriving despite the recent unfavorable macroeconomic situation, which was brought on by a global pandemic and escalating inflationary pressures. However, the stock market downturn of 2022 has had an impact on Nike's share price, with the company's shares declining by more than 38% since November of 2021. Therefore, the goal of this dissertation is to determine Nike, Inc.’s target share price for the end of the firm’s fiscal year of 2023 (31/05/2023) and provide a detailed investment recommendation based on the intrinsic value of Nike. A thorough research of Nike's industry, projections for the forthcoming macroeconomic environment, as well as a profound company research, were the pillars sustaining this valuation. Based on the conciliation of the author’s assumptions with the best firm valuation practices, the target value per Nike share was set at $108.68, derived from a WACCbased DCF approach, meaning a 2.6% upside potential. In the end, the results obtained were discussed through a sensitivity analysis and compared to other analyst’s forecasts, which, considering the uncertainty regarding the current economic context, supported a hold recommendation.Com uma posição de liderança na indústria de roupas desportivas e uma das marcas mais valiosas e reconhecidas do mundo, a Nike, Inc. é a maior designer e fabricante mundial de calçado e roupa desportiva. Apesar do recente contexto macroeconómico desfavorável, impulsionado por uma pandemia global e pressões inflacionárias crescentes, a Nike conseguiu defender sua posição de liderança no mercado e apresentar um forte desempenho operacional. No entanto, a queda do mercado de ações em 2022 afetou o preço das ações da Nike, desvalorizando as ações da empresa em mais de 38% desde novembro de 2021. Portanto, o objetivo desta dissertação é determinar o valor subjacente às ações da Nike, Inc. Uma análise minuciosa da indústria da Nike, projeções para o contexto macroeconómico futuro, bem como uma pesquisa profunda sobre a empresa, foram os pilares que sustentaram esta avaliação. Com base na conciliação das previsões do autor com as melhores práticas de avaliação de empresas, o valoralvo por ação da Nike foi fixado em $108,68, resultado de uma análise DCF baseada no WACC, apresentando um potencial de valorização de 2,6%. No final, os resultados obtidos foram discutidos através de uma análise de sensibilidade e comparados com as previsões de outros analistas, que, face à incerteza associada ao atual contexto económico, suportaram uma recomendação de manutenção.Martins, José Carlos TudelaVeritati - Repositório Institucional da Universidade Católica PortuguesaBalsinhas, Gonçalo Nuno Ferreira2023-12-30T01:30:33Z2023-02-012022-122023-02-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/41387TID:203278585enginfo: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:RCAAP2024-01-02T01:36:02Zoai:repositorio.ucp.pt:10400.14/41387Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:34:05.144549Repositório 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 of Nike, Inc. |
title |
Equity valuation of Nike, Inc. |
spellingShingle |
Equity valuation of Nike, Inc. Balsinhas, Gonçalo Nuno Ferreira Nike Equity valuation DCF Apparel and footwear Avaliação de empresas Roupa e calçado Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Equity valuation of Nike, Inc. |
title_full |
Equity valuation of Nike, Inc. |
title_fullStr |
Equity valuation of Nike, Inc. |
title_full_unstemmed |
Equity valuation of Nike, Inc. |
title_sort |
Equity valuation of Nike, Inc. |
author |
Balsinhas, Gonçalo Nuno Ferreira |
author_facet |
Balsinhas, Gonçalo Nuno Ferreira |
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 |
Balsinhas, Gonçalo Nuno Ferreira |
dc.subject.por.fl_str_mv |
Nike Equity valuation DCF Apparel and footwear Avaliação de empresas Roupa e calçado Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Nike Equity valuation DCF Apparel and footwear Avaliação de empresas Roupa e calçado Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
With a leading position in the sportswear industry and one of the most valuable and reputable brands worldwide, Nike, Inc. is the world’s largest designer and manufacturer of athletic footwear and apparel company. Nike has kept its dominant market share position and its operations thriving despite the recent unfavorable macroeconomic situation, which was brought on by a global pandemic and escalating inflationary pressures. However, the stock market downturn of 2022 has had an impact on Nike's share price, with the company's shares declining by more than 38% since November of 2021. Therefore, the goal of this dissertation is to determine Nike, Inc.’s target share price for the end of the firm’s fiscal year of 2023 (31/05/2023) and provide a detailed investment recommendation based on the intrinsic value of Nike. A thorough research of Nike's industry, projections for the forthcoming macroeconomic environment, as well as a profound company research, were the pillars sustaining this valuation. Based on the conciliation of the author’s assumptions with the best firm valuation practices, the target value per Nike share was set at $108.68, derived from a WACCbased DCF approach, meaning a 2.6% upside potential. In the end, the results obtained were discussed through a sensitivity analysis and compared to other analyst’s forecasts, which, considering the uncertainty regarding the current economic context, supported a hold recommendation. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-12 2023-12-30T01:30:33Z 2023-02-01 2023-02-01T00:00:00Z |
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info:eu-repo/semantics/publishedVersion |
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http://hdl.handle.net/10400.14/41387 TID:203278585 |
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