Nike, Inc.
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America. The company offers its p…
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America. The company offers its products under the NIKE, Jordan, Converse, Jumpman, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also provides a line of performance equipment and accessories, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities; and sports apparel, as well as sells products to wholesale customers and directly to consumers through NIKE Direct operations; distributes and licenses casual sneakers, apparel, and accessories; and markets apparel with licensed college and professional team and league logos. In addition, the company offers consumer services and experiences, including sport focused events and activations; fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other wholesale accounts through NIKE-owned retail stores, independent distributors, licensees, sales representatives, and digital platforms. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in May 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.Looks overvalued
Other models: USD 19.49–25.10 (median 22.29). The recommended value is in line with them.
Why: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Details and the full model are below.
Market price above modeled range
Free-cash-flow DCF using Fiscal year 2026 reported free cash flow, with cash, debt, and shares from the latest report. Base assumptions are 2.25% growth, 3.1% terminal growth, and 10.8% discount. Low/high cases vary growth by 2 and terminal growth/discount by 1 percentage point; this illustrative range is not a statistical confidence interval or investment advice.
Assumptions: growth 2.25%, discount rate 10.80%, terminal growth 3.10% (sector defaults). See a worked example.
Blended growth assumption: 2.2% (sector default 7.2%, own revenue history -0.2%, analyst revenue consensus 1.0%).
5-year outlook: relative outlook of about 5.4% a year (High confidence), anchored to a 7% market return and adjusted for how this company ranks against others. A ranking aid, not a prediction. See the full forecast.
Analyst consensus expects revenue growth of 1.0% a year; the growth assumption used is 2.3%.
Adjust assumptions
Why this model: Free cash flow is positive and in line with earnings, and the dividend is small, so a cash-flow DCF fits best.
Compare models- Recommended: Free-cash-flow DCF — USD 18.79 (-52.5%)
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EPS-based Gordon proxy
— USD 25.10 (-36.6%)
Not used: Treats all earnings as if paid out and ignores the cash kept for reinvestment, so it overstates value for companies that retain most profit.
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DCF (trailing free cash flow)
— USD 18.79 (-52.5%)
Not used: Not chosen: Free-cash-flow DCF ranks ahead of it for this company.
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FCFF (steady state)
— USD 19.49 (-50.7%)
Not used: Assumes only the long-run terminal growth rate from today, so it ignores the near-term growth expected.
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EV/EBITDA (12x)
— not applicable
Not used: Cannot be computed: EBITDA is missing, zero or negative.
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Fade DCF (10-year growth fade)
— USD 18.82 (-52.4%)
Not used: An alternative growth path (fading over 10 years) shown for comparison; the automatic choice does not use it.
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EV/Sales (Rule of 40)
— USD 31.07 (-21.5%)
Not used: Used only for technology and communication companies whose cash-flow value is far below the price.
| Bear USD 14.12 | -180.1% |
| Base USD 18.79 | -110.5% |
| Bull USD 26.85 | -47.3% |
Margin = (value − price) / value, so it is measured against the value and reads lower than the upside to value, which is measured against the price. Positive means the price is below that case.
At USD 39.56 the market implies about this annual free-cash-flow growth for 5 years (terminal 3.1%, discount 10.8%).
Compare: the market implies 20.6% a year, this model assumes 2.3%. The market expects more than this model does, which is why it reads as overvalued.
How the Free-cash-flow DCF value changes with growth (rows) and discount rate (columns). Green cells are above the current price.
| Growth \ Discount | 8.8% | 9.8% | 10.8% | 11.8% | 12.8% |
|---|---|---|---|---|---|
| -1.8% | 21.25 | 18.11 | 15.78 | 13.99 | 12.57 |
| 0.3% | 23.27 | 19.80 | 17.23 | 15.25 | 13.68 |
| 2.3% | 25.44 | 21.62 | 18.79 | 16.61 | 14.88 |
| 4.3% | 27.79 | 23.58 | 20.47 | 18.07 | 16.17 |
| 6.3% | 30.31 | 25.69 | 22.27 | 19.64 | 17.55 |
Track record: see the methodology page for how this model has performed historically, including its limits. Treat it as a screen, not a forecast.
Price history and fair value
No chartable saved daily price history is available for this range. The chart uses stored EODHD prices only and will appear after history is saved.
More detail: quality, peers, price history, dividends and financials
Quality score: 73 / 100
Five equal checks on reported history: profitability, cash generation, revenue growth, balance sheet and margins. It describes business quality, not whether the price is attractive.
| Profitability | 5 of 5 years profitable | 20 / 20 |
| Cash generation | free cash flow positive in 5 of 5 years | 20 / 20 |
| Growth | revenue -2.7% a year | 4 / 20 |
Peers in Consumer Discretionary
Same-sector companies with a valuation, most undervalued first. Compare the margin of safety, yield and quality score side by side.
| Company | Price | Margin of safety | P/E | P/B | Yield | Quality |
|---|---|---|---|---|---|---|
| NKE (this company) | USD 39.56 | -110.5% | 18.9 | 3.9 | 4.1% | 73 |
| KGF.L Kingfisher plc | GBP 3.72 | 45.2% | 27.0 | 1.1 | 3.3% | 74 |
| BWY.L Bellway p.l.c. | GBP 23.01 | 43.6% | 14.0 | 0.8 | 3.1% | 70 |
| INCH.L Inchcape plc | GBP 6.41 | 37.3% | 9.0 | 1.9 | 4.1% | 80 |
| ZAL.DE Zalando SE | EUR 27.49 | 36.6% | 108.5 | 2.6 | – | 80 |
| DECK Deckers Brands | USD 87.74 | 34.9% | 11.2 | 5.1 | – | 100 |
| LULU Lululemon Athletica | USD 111.77 | 33.3% | 8.9 | 2.6 | – | 100 |
| EXPE Expedia Group | USD 272.48 | 29.6% | 15.8 | 20.2 | 0.7% | 100 |
| BKNG Booking Holdings | USD 168.72 | 28.9% | 17.7 | – | 1.0% | 100 |
| Peer median | 14.9 | 2.6 | ||||
Dividends
Paid in the last 12 months: USD 1.64 per share · yield 4.15% at the current price.
| Year | Dividends per share |
|---|---|
| 2026 (so far) | 1.230 |
| 2025 | 1.610 |
| 2024 | 1.510 |
| 2023 | 1.390 |
| 2022 | 1.255 |
| 2021 | 1.130 |
Annual financial statement
Saved annual report · Fiscal year 2026 · SEC EDGAR annual filings · period ended 31 May 2026
| Revenue | USD 46,398,000,000 |
|---|---|
| EBITDA | USD |
| EBIT | USD |
| Net income | USD 3,108,000,000 |
| Free cash flow | USD 2,184,000,000 |
| Capital expenditures | USD -684,000,000 |
| Debt | USD 7,942,000,000 |
| Cash | USD 7,563,000,000 |
| Working capital | USD 12,056,000,000 |
| Shares outstanding | 1,481,000,000 |
| Reported dividends per share | USD 1.6300 |