Case study 02 — Finance

Nike DCF Valuation

Estimating intrinsic value through a discounted cash flow model.

Independent finance project
2026

01

Objective

Estimate Nike's intrinsic value using a five-year FCFF discounted cash flow model.

02

Model

01Revenue forecast
02EBIT forecast
03NOPAT
04FCFF
05Discount at WACC
06Terminal value
07Enterprise value
08Equity value
09Implied share price

03

Key assumptions

9.2%
WACC: 2.5%
Terminal growth: $43.55
Base-case implied value / share

04

Scenarios

Case	Implied value / share	Notes
Bear	—	—
Base	$43.55	WACC 9.2%, terminal growth 2.5%
Bull	—	—

Sensitivity analysis — WACC × terminal growth

Implied share price sensitivity table by WACC and terminal growth rate

Valuation summary

Nike valuation summary including market price, base value and scenario values

Model screenshots

Nike DCF key assumptions and five-year financial forecast

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