The Intrinsic Value of NikeTo determine the intrinsic value of Nike we’ll begin by looking at the company’s history of free cash flow. Below is a chart of Nike's free cash flow for the past ten years. To determine Nike’s intrinsic value, an estimate must be made of its potential future free cash flows. To build this estimate, there is an array of potential outcomes for future free cash flows in the graph below. The lower bound line represents a -3% growth rate in free cash flow growth and has been assigned a 15% probability of occurrence.

Source: Forbes October 22, 2017 02:03 UTC