Skip to content

Nike, Inc. (NKE) — WACC Analysis

WACC Breakdown

Nike, Inc. (NKE) has a weighted average cost of capital (WACC) of 8.3%. The cost of equity is 9.2%, derived from a beta of 1.07 and a risk-free rate of 4.7%. The after-tax cost of debt is 1.6%. The capital structure is 88.4% equity and 11.6% debt.

Interpretation

A WACC of 8.3% is moderate, reflecting the market's balanced risk assessment of Nike, Inc..

Investors can compare NKE's WACC of 8.3% against industry peers to gauge its relative financing costs. A beta of 1.07 reflects the stock's volatility relative to the broader market.

DeepViews
VALUATION

NKE WACC: 8.29% for Nike, Inc.

Current inputs imply a 9.17% cost of equity and a 2.00% pre-tax cost of debt. Use this discount rate as a starting point for DCF validation.

[01]Current Market Data
Loading market data...
[02]
WACC Calculation Process
1
Market Data Loaded
2
Company Data Fetched
3
Beta Calculated (5Y)
4
Inputs Auto-Populated
5
WACC Calculated
[03]
Step 2: Enter Ticker Symbol
Quick search:
Step 4: Review Auto-Populated WACC Inputs

Values are automatically populated from real data. You can adjust them manually if needed.

4.30%
1.000
4.23%
5.00%
21.00%
70.00%
Debt: 30.00%Equity: 70.00%

Please enter a valid company ticker to calculate WACC

Nike, Inc. Common Stock (NKE) WACC Results
Weighted Average Cost of Capital
8.29%
Cost of Equity
9.17%
Risk-Free Rate4.74%
Beta1.07
Market Risk Premium4.23%
Cost of Debt
1.58%
Pre-Tax Cost of Debt2.00%
Tax Rate21.00%
Tax Shield0.42%
Capital Structure
Equity: 88.39%($60.47B)
Debt: 11.61%($7942.00M)
Equity Component
8.10%
88.39% × 9.17%
Debt Component
0.18%
11.61% × 1.58%

Nike, Inc. (NKE) WACC in context

Nike, Inc. (NKE) currently screens with an estimated WACC of 8.29%. That blends a 9.17% cost of equity, a 2.00% pre-tax cost of debt, and a 88.39% equity weight into the discount rate you would typically use in a DCF model.

falls into a common range for established public companies and is a practical DCF starting point.

What NKE WACC implies

A 8.29% discount rate falls into a common range for established public companies and is a practical DCF starting point.

How this page calculates NKE

This page combines CAPM-based cost of equity with SEC-derived debt and capital structure inputs. The current beta is 1.07 and equity accounts for 88.39% of capital.

What to do next

Validate business quality on the company page, then carry the same discount-rate assumptions into the DCF page to test fair value sensitivity.

Disclaimer: This is not financial advice. Data sourced from SEC EDGAR and Polygon.io. Past performance does not guarantee future results. Always conduct your own research before making investment decisions.