Publicação
Nike, Inc. equity valuation
| Resumo: | This dissertation consist in the development of an appropriate valuation methodology with the purpose to assess properly the company Nike, Inc. and determine a price target as of 31st May of 2022 that correspond to the end of the fiscal year 2022. The share price obtained would be used to make an investment recommendation such as hold, sell or buy Nike’s shares. Therefore, this dissertation would answer this question: “Should I buy, hold or sell Nike, Inc. stocks?”. For this purpose and after a profound research in respect to valuation models, I used two different valuation metholdologies: Discounted Cash-Flow model and Relative Valuation. The main conclusion is that Nike, Inc is slightly overvalued, since the results obtained from DCF methodology ($116,29) and Relative Valuation ($111,47) registered, in average, lower fair values compared to the market price ($118,50). I considered the DCF valuation more appropriate to determine a fair value for a company like Nike since take in account more significant variables that contributes with great relevance for the performance of the company. For the Relative Valuation, I have to consider companies from other industries that were more similar to Nike in important financial indicators. My valuation is compared with a coporate valuation report published by Zacks Investment, where determine the fair value by using Relative Valuation method. The main diferences was based on peer group selection and the mutiples applied for the valuation. |
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| Autores principais: | Milheiro, Carlos Rafael de Guimarães |
| Assunto: | Nike Inc DCF Relative valuation |
| Ano: | 2023 |
| País: | Portugal |
| Tipo de documento: | dissertação de mestrado |
| Tipo de acesso: | acesso aberto |
| Instituição associada: | Universidade Católica Portuguesa |
| Idioma: | inglês |
| Origem: | Veritati - Repositório Institucional da Universidade Católica Portuguesa |
| Resumo: | This dissertation consist in the development of an appropriate valuation methodology with the purpose to assess properly the company Nike, Inc. and determine a price target as of 31st May of 2022 that correspond to the end of the fiscal year 2022. The share price obtained would be used to make an investment recommendation such as hold, sell or buy Nike’s shares. Therefore, this dissertation would answer this question: “Should I buy, hold or sell Nike, Inc. stocks?”. For this purpose and after a profound research in respect to valuation models, I used two different valuation metholdologies: Discounted Cash-Flow model and Relative Valuation. The main conclusion is that Nike, Inc is slightly overvalued, since the results obtained from DCF methodology ($116,29) and Relative Valuation ($111,47) registered, in average, lower fair values compared to the market price ($118,50). I considered the DCF valuation more appropriate to determine a fair value for a company like Nike since take in account more significant variables that contributes with great relevance for the performance of the company. For the Relative Valuation, I have to consider companies from other industries that were more similar to Nike in important financial indicators. My valuation is compared with a coporate valuation report published by Zacks Investment, where determine the fair value by using Relative Valuation method. The main diferences was based on peer group selection and the mutiples applied for the valuation. |
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