Nike Inc., FCFF calculation

US$ in millions

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Net income	5,700)	5,070)	6,046)	5,727)	2,539)	4,029)
Net noncash charges	1,013)	1,284)	802)	885)	1,191)	1,312)
Changes in certain working capital components and other assets and liabilities	716)	(513)	(1,660)	45)	(1,245)	562)
Cash provided by operations	7,429)	5,841)	5,188)	6,657)	2,485)	5,903)
Cash paid during the year for interest, net of capitalized interest, net of tax¹	324)	284)	264)	241)	112)	128)
Additions to property, plant and equipment	(812)	(969)	(758)	(695)	(1,086)	(1,119)
Free cash flow to the firm (FCFF)	6,941)	5,156)	4,694)	6,203)	1,511)	4,912)

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

¹ See details »

Download chart

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Nike Inc. suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Nike Inc. FCFF increased from 2022 to 2023 and from 2023 to 2024.

Nike Inc., interest paid, net of tax calculation

US$ in millions

12 months ended:	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Effective Income Tax Rate (EITR)
EITR¹	14.90%	18.20%	9.10%	17.70%	20.20%	16.10%
Interest Paid, Net of Tax
Cash paid during the year for interest, net of capitalized interest, before tax	381)	347)	290)	293)	140)	153)
Less: Cash paid during the year for interest, net of capitalized interest, tax²	57)	63)	26)	52)	28)	25)
Cash paid during the year for interest, net of capitalized interest, net of tax	324)	284)	264)	241)	112)	128)

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

¹ See details »

² 2024 Calculation
Cash paid during the year for interest, net of capitalized interest, tax = Cash paid during the year for interest, net of capitalized interest × EITR
= 381 × 14.90% = 57

Download chart

Nike Inc., current EV/FCFF calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	107,342)
Free cash flow to the firm (FCFF)	6,941)
Valuation Ratio
EV/FCFF	15.46
Benchmarks
EV/FCFF, Competitors¹
lululemon athletica inc.	21.17
EV/FCFF, Sector
Consumer Durables & Apparel	26.34
EV/FCFF, Industry
Consumer Discretionary	40.30

Based on: 10-K (reporting date: 2024-05-31).

¹ Click competitor name to see calculations.

If the company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.
Otherwise, if the company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Nike Inc., historical EV/FCFF calculation, comparison to benchmarks

	May 31, 2024	May 31, 2023	May 31, 2022	May 31, 2021	May 31, 2020	May 31, 2019
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	104,396)	162,776)	171,515)	248,616)	154,410)	134,665)
Free cash flow to the firm (FCFF)²	6,941)	5,156)	4,694)	6,203)	1,511)	4,912)
Valuation Ratio
EV/FCFF³	15.04	31.57	36.54	40.08	102.21	27.41
Benchmarks
EV/FCFF, Competitors⁴
lululemon athletica inc.	35.33	120.71	42.97	69.99	64.80	35.42
EV/FCFF, Sector
Consumer Durables & Apparel	—	36.97	37.72	42.57	94.28	28.19
EV/FCFF, Industry
Consumer Discretionary	—	32.71	50.20	59.78	45.72	30.57

Based on: 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31), 10-K (reporting date: 2019-05-31).

¹ See details »

² See details »

³ 2024 Calculation
EV/FCFF = EV ÷ FCFF
= 104,396 ÷ 6,941 = 15.04

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Nike Inc. EV/FCFF ratio decreased from 2022 to 2023 and from 2023 to 2024.

Nike Inc. (NYSE:NKE)

Enterprise Value to FCFF (EV/FCFF)

Free Cash Flow to The Firm (FCFF)

Interest Paid, Net of Tax

Enterprise Value to FCFF Ratio, Current

Enterprise Value to FCFF Ratio, Historical