NIKE, Inc.

: equity valuation

Abstract

The value of a company in the stock market is influenced by several factors. Some of them are the macroeconomic scenario in which the company operates, the stakeholders’ expectations, the market sentiment and totally uncontrolled external events and shocks (such as Covid-19). The purpose of this dissertation is to perform a fair evaluation of the price of NIKE, Inc. (Nike ed.) in the stock market on June 1st, 2020, keeping in mind drivers such as those listed above. After the evaluation was performed, the results were compared with the results of an Equity Research Report of the leading investment managements company Zacks. After a deep research on the company fundamentals, the Sporting Goods industry and overall economic scenario, the models considered more suitable for this valuation were two really diffused models: Discounted Cash Flow and a Multiples valuation. The value yielded by the application of these two models was a share price of $100,21. Comparing this result with the market share price of NIKE, Inc. on June 1st, 2020, which equaled $98,11, the outcome of this dissertation is a HOLD/BUY recommendation to Nike’s share.

Date of Award	12 Oct 2020
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	José Carlos Tudela Martins (Supervisor)