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NKE - Nike Inc Fair Value Calculator

Earnings Per Share : $
  
Default value for Earning per Share (without none-recurring items) is the TTM GAAP earning. Use the information at right side to adjust.
Growth Rate In the Next:
Years : %
  
The number of years in the growth stage, and the average annual growth rate. The default value for the growth rate is the average Earings Per Share (eps) growth rate of the past 10 years. If this growth rate is high than 20% a year, it is set to 20%.
Business Predictability  
Terminal Growth Rate: %
  
After the growth stage, it is more reasonable to set the terminal growth rate at the inflation rate. The terminal growth rate must be smaller than the discount rate to make the calculation converge.
Years of Terminal Growth:
  
The number of years for terminal value calculation. The value after this is considered zero. Default is 10.
Discount Rate:
%
  
A reasonable discount rate assumption should be at least the long term average return of the stock market, which is about 11%, because investors can always invest passively in an index fund and get an average return. Some investors use their expected rate of return, which is also reasonable. A typical discount rate can be anywhere between 10% - 20%.
Tangible Book Value:
$
  
Default Book Value is the tangible book value, which may underestimate or overestimate the real value
Growth Value:
 
  
Cumulative earnings during the growth stage discounted to current using the discount rate.
Terminal Value:
 
  
Cumulative earnings during the terminal stage discounted to current using the discount rate.
= Fair Value:
 
  
Intrinsic Value = Future Earnings at Growth Stage + Terminal Value.
 
Margin Of Safety:
 

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User Comments

PhilipCohen
ReplyPhilipCohen - 1 month ago
eBay’s Johnny Ho appointed to Nike board …

Seriously? Given the state of the eBay marketplace under Johnny Ho, and the fact that the Ho would now have to be the most despised person on the planet, this Nike appointment has to be some sort of delayed April Fools Day joke. Obviously, these guys must all live in gated communities, with their own atmospheres, and never venture outside into the real world.

Hasn’t Nike’s chairman Knight, or anyone else at Nike, perused the performance of eBay’s stock price over the past seven years? Then, maybe Knight is simply another Bain-connected sociopath, like the Ho. Who knows? But it is telling that anyone could listen to Johnny Ho drone on and yet still be so impressed.

The Ho’s 2007 Legg Mason “Thought Leader” ramble, where he laid out his plans for the future of eBay (pity eBay’s stockholders), is a classic that, for anyone seeking to understand the delusional thought processes of the Ho, should be read—or at least attempted—by those with sufficient staying power. And then there is his later short LinkedIn “Thinking Day” chat—Ho, Ho, Ho …

On second thought, for those inclined, it might be better to start with the brief, comical LinkedIn “Thinking Day” article first as the Legg Mason interview is extremely hard going—faster acting even than flunitrazepam …

http://www.linkedin.com/today/post/article/20130715110232-187399433-to-beat-the-chaos-take-a-thinking-day

http://www.leggmason.com/thoughtleaderforum/2007/conference/donahoe.html

"Even though people think I'm an expert at technological innovation, my own instinct for technology was frozen in place in 1982."—John Donahoe (26 Sep 2007) ...

eBay Inc, where the incompetent mingle with the malevolent and the outright criminal, and the just plain stupid ...
http://www.ecommercebytes.com/forums/vbulletin/showthread.php?24736-Shill-Bidding-on-eBay-Case-Study-5
Traderatwork
ReplyTraderatwork - 7 months ago
estimate EPS growth rate 7%, EPS 2013 is 3.13, 8.5 + 2G around 20X so 20 * 3 is around 60



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