Nike designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The company offers products in eight categories, including running, basketball, football, mens training, womens training, sportswear, action sports, and golf under the NIKE and Jordan brand names. The company was founded in 1964 and is based in Beaverton, Oregon.
NKE Price Forecast Based on DCF Valuation
DCF Fair Value Target:
We started the process of determining a valid price forecast for NIKE Inc with a discounted cash flow analysis -- the results of which can be found in the table below. To summarize, we found that NIKE Inc ranked in the 5th percentile in terms of potential gain offered. We should note, though, that the most conservative analysis suggests this stock will yield negative results -- and thus may be a potential short opportunity. In terms of the factors that were most noteworthy in this DCF analysis for NKE, they are:
The company's compound free cash flow growth rate over the past 5.8 years comes in at -0.07%; that's greater than just 17% of US stocks we're applying DCF forecasting to.
The business' balance sheet suggests that 6% of the company's capital is sourced from debt; this is greater than merely 16.13% of the free cash flow producing stocks we're observing.
The company's cost of debt, derived from its interest coverage, tax rate, and market capitalization, is greater than just 0% of stocks in its sector (Consumer Cyclical).
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
Want more companies with a valuation profile/forecast similar to that of NIKE Inc? See BLL, BYD, DBI, MLCO, and PLCE.
Nike (NYSE: NKE) shares experienced unusual options activity on Friday. The stock price moved down to $124.78 following the option alert. * Sentiment: BULLISH * Option Type: TRADE * Trade Type: PUT * Expiration Date: 2020-09-25 * Strike Price: $124.00 * Volume: 501 * Open Interest: 927Three Indications Of Unusual Options Activity Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. The number of unsettled contracts that have been traded, but not yet closed, is called open interest. These contracts are not yet closed because a buyer has not purchased the contract, or a seller has not sold it.The trading...