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ABSTRACT

THIS RESEARCH FOCUSES ON NIKE, INC., AN AMERICAN MULTINATIONAL CORPORATION AND GLOBAL  LEADER IN THE DESIGN, MARKETING, AND SALE OF ATHLETIC FOOTWEAR, APPAREL, AND EQUIPMENT.  THE STUDY EXECUTES A FINANCIAL VALUATION OF NIKE WITH THE OBJECTIVE OF ESTIMATING ITS  INTRINSIC VALUE AND COMPARING IT WITH THE MARKET VALUE AS OF MAY 31ST, 2023. THE  ANALYSIS COMBINES A REVIEW OF THE COMPANY'S OVERALL STRATEGIC POSITIONING IN THE  INDUSTRY AND ITS HISTORICAL FINANCIAL PERFORMANCE.  THE METHODOLOGY INVOLVED THE REORGANIZATION OF FINANCIAL STATEMENTS, THE CALCULATION  OF KEY FINANCIAL METRICS (NOPLAT, FCF, ROIC), THE ESTIMATION OF THE COST OF CAPITAL  (WACC) USING CAPM, AND THE APPLICATION OF VALUATION MODELS BASED ON DISCOUNTED  CASH FLOWS (ENTERPRISE DCF, APV, DEP).  THE RESULTS IMPLY THAT, AS OF MAY 31ST, 2023, NIKE'S ESTIMATED INTRINSIC VALUE WAS  BETWEEN $54.94 AND $59.23 PER SHARE. COMPARING THIS TO THE MARKET PRICE OF $105.26  ON THE SAME DATE, THE ANALYSIS CONCLUDES THAT NIKE SHARES WERE SIGNIFICANTLY OVERVALUED.  THE SENSITIVITY ANALYSIS HIGHLIGHTED THE VULNERABILITY OF THE VALUATION TO CHANGES IN THE  MARKET RISK PREMIUM AND THE PERPETUAL GROWTH RATE. IT IS CONCLUDED THAT, DESPITE NIKE'S  STRONG MARKET POSITION, EFFECTIVE MANAGEMENT OF EXTERNAL RISKS, AND MAINTENANCE OF  FINANCIAL DISCIPLINE ARE CRUCIAL TO ITS FUTURE VALUE.