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Nike, Inc.
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== '''Valuation Summary''' == {| class="wikitable" |'''Comparable Trading Analysis''' | colspan="2" | | | | | | |- | colspan="3" | ''All figures in USD millions unless statedย '' | | | | | |- | | colspan="2" |'''Enterprise''' |'''Market''' |'''EBITDA''' |'''Net Income''' |'''EV / EBITDA''' |'''P / E''' |- |'''Peer Companies''' | colspan="2" |'''Value''' |'''Cap''' | '''LTM''' |'''LTM''' |'''LTM''' |'''LTM''' |- |Adidas AG | colspan="2" |40,840 |34,380 |730 |794.4 |55.95x |43.3x |- |Puma SE | colspan="2" |12,200 |10,330 |793 |347.2 |15.39x |29.8x |- |Under Armour, Inc | colspan="2" |4,090 |3,300 |412 |243.4 |9.92x |13.6x |- |Lululemon Athletica Inc | colspan="2" |48,520 |48,370 |2,179 |1,382.4 |22.27x |35.0x |- |Anta Sports Products Limited | colspan="2" |30,280 |31,210 |1,755 |931.6 |17.25x |33.5x |- |Columbia Sportswear Company | colspan="2" |4,800 |4,730 |521 |319.2 |9.21x |14.8x |- |Skechers U.S.A., Inc. | colspan="2" |9,530 |8,470 |826 |336.3 |11.53x |25.2x |- |Steven Madden, Ltd. | colspan="2" |2,540 |2,670 |222 |132.6 |11.44x |20.1x |- |Li Ning Company Limited | colspan="2" |13,400 |14,250 |798 |588.4 |16.79x |24.2x |- |VF Corporation | colspan="2" |14,670 |7,610 |1,228 |116.5 |11.95x |65.3x |- | | colspan="2" | | | | | | |- |Target Company Valuation | colspan="2" | | | | | | |- |Average | colspan="2" |123,082 |118,122 |6,774 |3,876 |18.2x |30.5x |- |Median | colspan="2" |92,601 |106,455 |6,774 |3,876 |13.7x |27.5x |- |Maximum | colspan="2" |379,005 |253,232 |6,774 |3,876 |56.0x |65.3x |- |Minimum | colspan="2" |62,389 |52,553 |6,774 |3,876 |9.2x |13.6x |- | | colspan="2" | | | | | | |- | | colspan="2" | | | | | | |- |'''Valuation Summary''' | colspan="2" | | | | | | |- | | colspan="2" | | | | | | |- | colspan="2" |'''Median Enterprise Value''' | '''92,601''' | | | | | |- | colspan="2" |Less: Total Debt |12,140 | | | | | |- | colspan="2" |Pluss: Cash |10,680 | | | | | |- | colspan="2" |'''Equity Value''' | '''91,141''' | | | | | |- | colspan="2" | | | | | | | |- | colspan="2" |Nike's Stock Outstanding, Billions |1.23 | | | | | |- | colspan="2" |Equity Value Per Share, USD |74.1 | | | | | |- | colspan="2" | | | | | | | |- | colspan="2" |Current Market Price per Share, USD |109.3 | | | | | |- | colspan="2" |''Downside, %'' |''-32%'' | | | | | |} The provided table presents a Comparative Trading Analysis of peer companies in the athletic footwear and apparel industry alongside Nike's valuation metrics. The analysis offers a comprehensive view of various financial ratios and enterprise values (EV) for each company, facilitating a comparative assessment of their relative performance and valuation. Key insights from the analysis include: * '''EV/EBITDA as a Feasible Metric:''' Among the valuation metrics, EV/EBITDA (Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization) is widely used in financial analysis. It provides a clearer picture of a company's operating performance and financial structure by factoring in both debt and equity. This is especially relevant in capital-intensive industries like sportswear, where debt levels can significantly impact valuation. * '''Use of Median vs. Average:''' The median values are often preferred over averages in comparative analysis, as they mitigate the impact of extreme values, or outliers, that can distort the results. In this case, the median Enterprise Value of $92,601 million provides a more representative midpoint compared to the average of $123,082 million. * '''Valuation Range Insights:''' The analysis indicates a wide valuation range among the peer companies, with Nike's Enterprise Value falling within the range of $62,389 million to $379,005 million. This variability reflects differences in market perception, financial health, and growth prospects among the peers. * '''Nike's Valuation:''' Nike's median Enterprise Value of $92,601 million suggests that the market is valuing the company in line with its industry peers. The Equity Value per Share of $74.1 indicates the implied value attributed to each outstanding share of Nike stock. The downside of -32% highlights the potential for stock price decline from the current market price. In conclusion, EV/EBITDA is a robust metric for evaluating companies in the athletic footwear and apparel industry due to its consideration of both operational performance and financial structure. Median values are preferable for comparison purposes, offering a more stable representation of the data. Nike's valuation appears aligned with industry norms, and the analysis provides investors with valuable insights for making informed decisions based on relative valuation metrics.
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