DCF valuation of Nike (Simplified)

Nike
Revenue Growth (5 year) 10.89%
year 0 1 2 3 4 5
growth rate 10.89% 10.89% 10.89% 10.89% 10.89%
revenue 33917.00 37610.56 41706.35 46248.17 51284.60 56869.49
operatingmargin 13.60% 13.60% 13.60% 13.60% 13.60% 13.60%
operating income (EBIT)  4612.71 5115.04 5672.06 6289.75 6974.71 7734.25
tax rate 20% 20% 20% 20% 20% 20%
tax adjusted EBIT 3690.17 4092.03 4537.65 5031.80 5579.76 6187.40
"+Depreciation and Amortization" 691.00 760.10 836.11 919.72 1011.69 1112.86
"-Capex" 1018.00 1119.80 1231.78 1354.96 1490.45 1639.50
"-working capital" 599.00 658.90 724.79 797.27 877.00 964.70
Free Cash flow 2764.17 3073.43 3417.19 3799.30 4224.01 4696.07
PV of free cash flow 2598.64 2889.38 3020.17 3156.79 3299.50 3448.57
　
Total PV of cash flows 18413.03444
WACC 　
Discount rate 6.37%
　 Calculating the WACC 　
　 　
RFR 10 year US government bond 2.14%
beta According to NASDAQ.com 0.75
Equity Market Risk Premium 5.75%
　 　
CAPM 6.45% cost of equity
　 　
　 　
cost of debt
interest rate 3.70% (annual report)
tax rate 14.88% 　
　 　
　 3.15% cost of debt 
　 　
WACC 6.37% 　
Calculating the Perpetuity Value  　
Final Year FCF 4190
GDP growth rate 2.60%
Discount rate 6.37%
　 　
Perpetuity value 114030.24
Terminal Value 83738.32
Enterprise Value 102151.35
Fair Value of Nike 　
Enterprise value  102151.35
Debt 2055.00
Cash equivalents 5457.00
　 　
Fair Value 105553.35
calculating intrinsic value per share
Fair Value 105553.35
Shares Outstanding  1650.00
Intrinsic value per share  63.97
　 　
Current share value 51.42
Therefore UNDERVALUED  　
Upside 20%

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