NIKE, INC. 'B' NYSE-NKE TIMELINESS 3 SAFETY TECHNICAL BETA 1.10 (100-M 15-Month Target Price Range Low-High Midpoint to d High Low LEGENDS 102 174 40 Cash Flo Shtet w poc PRICE 136.64 40.8 Median: 24.0 PE RATIO 1.84 YLD 24.6 2087 40.1 409 66.2 05.4 66.2 06.0 1018 148.0 147.1 25.9 340 45.3 400 50.3 62.1 71.2 60.0 125.4 0.8% VALUE LINE Target Price Range 2024 2025 2026 801-8212 152 (1) Low 2004-26 PROJECTIONS An To Price Gan Return (30%) (+5% Institutional Decisione 200 180 100 89 299 $ STOT RETURN 3/21 THE NOLA Bay 904 700 Percent 1065 289 42.0 907 21.0 5.07 882 66 30 6 104 1.06 1.15 36 46 7 AR 80 397 1.10 112 12 15 118 16 122 25 27 30 23 29 A 25 2.69 305 340 3.38 440 5.18 5.67 2100 2072.0 20152 19644 1942 1836.0 1002.0 18320 179 160 165 128 15.3 164 162 95 86 88 1.07 1.02 1.04 1.2% 14% 15% 145 18% 1.7% CAPITAL STRUCTURE as of 22821 St 5.04 ARS 10.07 13.17 14.16 1.30 1.42 1.02 1.18 1.36 41 Hv100101000772 10 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 654 7.22 8.10 5.45 100.0 VALUE LINE PUB LLC 24-26 35 1.35 54 33 794 15.98 17.06 10.25 20.91 22.73 24.95 24.01 27.4 1.45 226 202 301 2.95 3.02 2.35 3.00 1.49 2.16 251 41 82 20 78 36 31 56 68 67 64 624 6.22 741 129 7.56 6.13 1788.0 1740.0 17140 1682.0 1643.0 1601.0 1568.0 1568.0 20.4 194 242 244 275 21.6 320 456 1.14 1.30 1.09 127 120 1.44 1.09 1.37 1.70 249 1.5 % 1.4% 1.5% 1.3% 1.2% 1.0% 1.3% 13% 1.1% 1.0% 2.40 2.49 5398 21.10 Sales per sh 41.45 4.45 Cash Flow per sh 1.25 1.85 3.15 3.95 Eaming 8.00 1.04 1.12 Div'ds Dec'd per sh co 1.86 71 70 50 50 Cap Spe 577 517 7.75 8.30 Book Valus p per sh sh 85 10.65 15800 1565.0 Common Shs Outst'g 1500.0 25.3 Bold figures are Avg Ann' PE Ratio 200 Value Line Relative PIE Ratio 1.10 states Avg Ann1 Div'd Yield 1.0% Total Debt 50416 mill Duin & You com mill 20852 24128 25313 27799 30601 32376 34350 38397 39117 37403 43350 48680 Sales (Smill) 62750 % TOT. RETURN 3/21 30 20 THIS STOCK VLANTIL INDEX 1 y 62.0 99.7 3 yr. 106.1 51.6 5 yr 128.6 100.0 2019 2020 2021 2022 24.95 24.01 27.45 VALUE LINE PUB. LLC 31.10 Sales per sh A 24-26 41.85 3.02 2.35 3.60 4.45 "Cash Flow" per sh 2.49 1.85 3.15 3.95 Earnings per sh An 86 .93 1.04 71 70 50 7.75 9.25 8.00 5.77 5.17 1.12 Div'ds Decl'd per sh coa 60 Cap'l Spending per sh 8.30 Book Value per sh 1568.0 1558.0 1580.0 1565.0 Common Shs Outst'g 32.0 48.6 Bold figures are Avg Ann'l P/E Ratio 1.66 85 10.65 1500.0 20.0 1.70 2.49 Value Line estimates Relative P/E Ratio 1.10 4029.0 2937.0 1.1% 1.0% 39117 37403 43350 14.0% 11.3% 14.7% 705.0 721.0 725 4975 Avg Ann'l Div'd Yield 1.0% 48680 Sales (Smill) A 62750 15.5 % Operating Margin 20.0% 770 Depreciation (Smill) 975 6200 Net Profit (Smill) 12000 16.1% 10.6 % 17.0% 20.0% Income Tax Rate 21.0% 10.3% 7.9% 13.3% 12.7% Net Profit Margin 24.3% 3659.0 12272 15500 16000 Working Cap'l ($mill) 18000 $464.0 9406.0 9300 8500 Long-Term Debt ($mill) 5000 1040.0 8055.0 12200 13000 Shr. Equity (Smill) 16000 32.7% 17.6% 24.5% 30.0% Return on Total Cap'l 58.0% 41.0% 47.5% Return on Shr. Equity 75.0% 34.0% Retained to Com Eq 59.5% 21% $4.6% 36.5% 29.8% 18.4% 27.5% 33% 49% 33% 28% All Div'ds to Net Prof another product line for kids. Has about 76,700 employees (in- uding part-timers). Swoosh, LLC, owns 74.9% Cl. A shares, 5.9% Cl. B; offs./dirs., 3.8% of Cl. B; Vanguard, 8.6%; BlackRock, 2% (7/20 proxy). Chairman: Mark G. Parker, CEO: John onahoe. Inc.: Oregon. Addr.: One Bowerman Drive, Beaverton, R 97005. Tel.: 503-671-6453. Internet: www.nikeinc.com. ould be an all-time record for the swoosh, nd quite the accomplishment given the ackdrop of the world's largest health risis in a century. The company's digital resence shined brightly given the lock- own conditions around the globe, and its IKE Direct plan, where sales go directly consumers and avoid third-party tailers, have margins heading north. introducing a fiscal 2022 are 1005 439 720 00 10 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2011 840 15.87 880 109 1317 1436 15 1785 102 1.0 1.00 1.15 130 10 100 22 37 1.10 138 1.36 226 23 180 2 22 25 29 30 3 4 54 25 29 57 31 S 2. 303 30 LO 5,01 10 604 741 21008 072 152 641945 60 1150 1750 1700 17140168 160 105 175 155 HEA 102 200 A 343 2h+ M 1.0 100 5:04 134 130 121 121 129 145 14% 13% 12% 1.9% 15 15% 126 12% 2009 24 14% RSS CARTAL STRUCTURE as of 20 Total Debt 50410 LY Debt 12 mil Que in 5 Yrs 54500 m LT Interest $515 mill 14% of Cap Leases, Uncapalland Annual rentals $563 m No Defined Benefit Pension Plan Preferred Stock None Common Stock 15736774 are Class A shares 106,011252 Class 9 shares 1274,966822 MARKET CAP: $216 billion (Large Cap) CURRENT POSITION 2019 1810 0 34700 2251 2248 CARLE Cash Assets 4603 6767 2020 2/20/21 12528 Recorvaties 274 overstory LIFO) 5622 Other 1066 7307 1663 Current Assets 1652 Accts Payable 2612 Debt Due 15 Other 251 5766 Current Liab ANNUAL RATES Past of change per 10 5 24-2 Salea 0.5% 85% 100% Cash Flow 100% 25% 21.0% Earnings 9.5% 24.0% Dividends 13.5% 150% Book Valu 28% 30% 11.0% Past Est'd 18-20 Fiscal QUARTERLY SALESIA End Aug 31 Nov 30 Feb-28 May 21 Year 12.0% Full Fiscal year 2018 9070 8554 84 9789 36307 2019 8948 8374 9611 10184 39117 2020 10660 1032 10104 6313 37403 2021 10594 11243 10357 11156 2022 12325 12495 11650 12210 Fiscal EARNINGS PER SHARE Year Ends Aug 31 Nov 30 Feb 25 May 31 66 69 2016 57 2019 67 32 68 62 2020 36 70 78 51 2021 95 78 90 52 2022 1.15 1.00 1.10 970 Cal- QUARTERLY DIVIDENDS PAID ender Mac31 Jun 30 Sep 30 Dec 31 2017 38 18 18 18 2018 20 20 20 201 22 22 22 2019 2020 2021 43350 48600 Full 185 1515 25313 277 300 250 3/50 00 1100 1000 210 22230 246402 20 250% 25% 24% 20% 10.2% 92% 97% 0.7% 70660 97000 90 7339 26.0 220 1210011990 2 le 10.7% 20 070 01038131156 ( 12707 21.1% 21.0% 200% 26% 28% 21.7% 21.4% 22.1% 49% 25.8% 18.0% 15.0% 150% 17.3% 87% 20% 20% 29% 30% BUSINESS: NIKE designs, develops, and counts, through NIKE-owned stores and the m of independent distributors and Sce tries, Offerings are focused in the categor The Jordan brand football (soccer), mining NIKE's fiscal third-qu (years end May 31st) dic with the investment Shares of the footwear ti trending higher in the day the release of February-pe and so too were expectation and earnings. This likely the selloff that followed the of results that were a mixe $10.4 billion missed the ma lion, while earnings came share versus a consensus c sales continued to rise sha step back from the feverish at this fiscal year. Too, supp Yar tied to problems at ports 240 receipts in the North An 249 Wall Street follows this ke and the quotation started 3.95 reading did not meet exp the stock had been up i Our earnings estimate year, so profit taking playe 72 is up by a dime per After factoring in the $t February quarter and ou the May quarter, we land change in sham count Next ogs report due Sate June 3.15 Full Year 88 22 245 375 245 245 275 245 98 Duned (A) Fiscal years and May 31st (B) namings Excludes nonrecuming 07, 208, Se 109, (134) 13. 16:18, ($1.23) due to tax law change, 20, (25e), May not sum due to (C) Dividends historically paid in early January Aprit July, and October Panvestment plan 2021 VW LIA get Fatal material and ham sources bed to be a THE PUBUSHER IS NOT RESPONSIBLE FOR ANY ERRORS OR OMISSIONS HEREIN The publication to of my tedd o tad any pri donc or other bin, or ad bir ging Risk Free Rate 3% Market Return 8% ERP Market return - Rf = 5% Perpetuity Growth Rates Dividend Growth Rate 3% FCFF Growth Rate 3% FCFE Growth Rate 3% Tax rate 20%. Assuming that the market risk premium is 5% and the risk free rate is 3%. What is NIKE's weighted average cost of capital? 9.12% 4.42% 5.19% 7.09% 14 NIKE's P/E ratio using 2022 earnings per share estimate and current stock price is closest to: (Hint: check the stock price as of today) 30 10 2 93