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Nike (NKE) Cyclically Adjusted Price-to-FCF : 33.61 (As of Apr. 27, 2024)


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What is Nike Cyclically Adjusted Price-to-FCF?

As of today (2024-04-27), Nike's current share price is $94.12. Nike's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 was $2.80. Nike's Cyclically Adjusted Price-to-FCF for today is 33.61.

The historical rank and industry rank for Nike's Cyclically Adjusted Price-to-FCF or its related term are showing as below:

NKE' s Cyclically Adjusted Price-to-FCF Range Over the Past 10 Years
Min: 31.73   Med: 49.52   Max: 87.72
Current: 33.59

During the past years, Nike's highest Cyclically Adjusted Price-to-FCF was 87.72. The lowest was 31.73. And the median was 49.52.

NKE's Cyclically Adjusted Price-to-FCF is ranked worse than
68.61% of 360 companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 18.385 vs NKE: 33.59

The Shiller PE Ratio was first used by professor Robert Shiller. He uses E10 for his Shiller PE Ratio calculation. E10 is the average of the inflation adjusted earnings per share of a company over the past 10 years. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF. The Cyclically Adjusted FCF per Share is the average of the inflation adjusted free cash flow per share of a company over the past 10 years.

Nike's adjusted free cash flow per share data for the three months ended in Feb. 2024 was $1.256. Add all the adjusted free cash flow per share for the past 10 years together and divide 10 will get our Cyclically Adjusted FCF per Share, which is $2.80 for the trailing ten years ended in Feb. 2024.

Shiller PE for Stocks: The True Measure of Stock Valuation


Nike Cyclically Adjusted Price-to-FCF Historical Data

The historical data trend for Nike's Cyclically Adjusted Price-to-FCF can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nike Cyclically Adjusted Price-to-FCF Chart

Nike Annual Data
Trend May14 May15 May16 May17 May18 May19 May20 May21 May22 May23
Cyclically Adjusted Price-to-FCF
Get a 7-Day Free Trial Premium Member Only Premium Member Only 46.01 61.74 69.33 50.84 40.92

Nike Quarterly Data
May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24
Cyclically Adjusted Price-to-FCF Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 47.51 40.92 39.90 40.68 37.17

Competitive Comparison of Nike's Cyclically Adjusted Price-to-FCF

For the Footwear & Accessories subindustry, Nike's Cyclically Adjusted Price-to-FCF, along with its competitors' market caps and Cyclically Adjusted Price-to-FCF data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Nike's Cyclically Adjusted Price-to-FCF Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nike's Cyclically Adjusted Price-to-FCF distribution charts can be found below:

* The bar in red indicates where Nike's Cyclically Adjusted Price-to-FCF falls into.



Nike Cyclically Adjusted Price-to-FCF Calculation

Like the Shiller PE Ratio, the Cyclically Adjusted Price-to-FCF takes the Free Cash Flow per Share from the past 10 years, adjusts it for inflation, and then calculates the average. This average is then used for the P/FCF calculation. Because it considers this 10-year average, it's often referred to as the CAPFCF Ratio.

The Shiller PE Ratio was first used by professor Robert Shiller to measure the valuation of the overall market. The similar calculation is applied by GuruFocus to calculate the Cyclically Adjusted Price-to-FCF.

Nike's Cyclically Adjusted Price-to-FCF for today is calculated as

Cyclically Adjusted Price-to-FCF=Share Price/ Cyclically Adjusted FCF per Share
=94.12/2.8
=33.61

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Nike's Cyclically Adjusted FCF per Share for the quarter that ended in Feb. 2024 is calculated as:

For example, Nike's adjusted Free Cash Flow per Share data for the three months ended in Feb. 2024 was:

Adj_FreeCashFlowPerShare=Free Cash Flow per Share/CPI of Feb. 2024 (Change)*Current CPI (Feb. 2024)
=1.256/129.4194*129.4194
=1.256

Current CPI (Feb. 2024) = 129.4194.

Nike Quarterly Data

Free Cash Flow per Share CPI Adj_FreeCashFlowPerShare
201405 0.624 100.373 0.805
201408 0.238 100.352 0.307
201411 0.361 99.635 0.469
201502 0.880 99.032 1.150
201505 0.625 100.333 0.806
201508 0.093 100.548 0.120
201511 0.147 100.135 0.190
201602 0.340 100.040 0.440
201605 0.722 101.355 0.922
201608 0.299 101.617 0.381
201611 0.441 101.829 0.560
201702 0.504 102.779 0.635
201705 0.377 103.256 0.473
201708 0.182 103.587 0.227
201711 0.659 104.072 0.820
201802 0.343 105.052 0.423
201805 1.128 106.148 1.375
201808 0.586 106.383 0.713
201811 0.763 106.338 0.929
201902 0.529 106.649 0.642
201905 1.079 108.048 1.292
201908 0.069 108.245 0.082
201911 0.423 108.519 0.504
202002 0.569 109.139 0.675
202005 -0.183 108.175 -0.219
202008 0.443 109.662 0.523
202011 1.432 109.793 1.688
202102 0.688 110.968 0.802
202105 1.138 113.576 1.297
202108 0.572 115.421 0.641
202111 1.595 117.269 1.760
202202 0.009 119.703 0.010
202205 0.570 123.323 0.598
202208 0.059 124.958 0.061
202211 0.487 125.607 0.502
202302 1.297 126.928 1.322
202305 1.275 128.314 1.286
202308 -0.207 129.538 -0.207
202311 1.705 129.548 1.703
202402 1.256 129.419 1.256

Add all the adjusted free cash flow per share together and divide 10 will get our Cyclically Adjusted FCF per Share.

Please note that we use the CPI data of the country/region where the company is headquartered. If the CPI data for that country/region is not available, then we will use the CPI data of the United States as default.


Nike  (NYSE:NKE) Cyclically Adjusted Price-to-FCF Explanation

Compared with the regular Price-to-Free-Cash-Flow, which works poorly for cyclical businesses, the Cyclically Adjusted Price-to-FCF smoothed out the fluctuations of free cash flow during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Cyclically Adjusted Price-to-FCF should give similar results to regular Price-to-Free-Cash-Flow.


Nike Cyclically Adjusted Price-to-FCF Related Terms

Thank you for viewing the detailed overview of Nike's Cyclically Adjusted Price-to-FCF provided by GuruFocus.com. Please click on the following links to see related term pages.


Nike (NKE) Business Description

Address
One Bowerman Drive, Beaverton, OR, USA, 97005-6453
Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
Executives
Mark G Parker officer: President ONE BOWERMAN DR, BEAVERTON OR 97005
Robert Holmes Swan director C/O EBAY INC., 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Monique S. Matheson officer: EVP: HR ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Johanna Nielsen officer: VP: CORP CONTROLLER ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Matthew Friend officer: EVP: CFO ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Craig A. Williams officer: PRES: GEOGRAPHIES & MRKTPLACE 1680 CAPITAL ONE DR., MCLEAN VA 22102
Maria Henry director C/O THE HILLSHIRE BRANDS COMPANY, 3500 LACEY ROAD, DOWNERS GROVE IL 60515
Peter B. Henry director C/O NEW YORK UNIVERSITY/KAUFMAN MGT CNT, 44 WEST 4TH STREET, SUITE 11-160, NEW YORK CITY NY 10012
Monica Gil director ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Andrew Campion officer: EVP: CFO, other: EVP: CFO ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Rogers John W Jr director ARIEL CAPITAL MANAGEMENT, INC., 200 EAST RANDOLPH DRIVE, SUITE 2900, CHICAGO IL 60601
Ann M Miller officer: EVP & General Counsel ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Hilary K Krane officer: VP General Counsel ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Heidi O'neill officer: PRES: CONSUMER AND MKTPLC C/O SKULLCANDY, INC., 1441 WEST UTE BOULEVARD, SUITE 250, PARK CITY UT 84098
Elizabeth J Comstock director GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210

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