A Portfolio Manager's Analysis of Nike Inc.

Analysts expect that long-term revenue growth targets will be 8 to 10% and revenue growth targets will exceed 15%. Kimi reviewed all the reports of the meeting on July 28, but failed to find a clear recommendation to make a clear decision. For that reason she asked me to make discounted cash flow projections to make clear decisions to my funds. Moreover, sensitivity analysis was carried out, and it was found that the discount rate of Nike is less than 11.17%. She had an important meeting and had to calculate Nike Inc., so Kimi's time is running short.

Economic Analysis - Today, Nike plays an important role in the business world In the economic world, the economic crisis is the biggest threat to any company, including Nike. Before the economic recession Nike's economy will influence the impact of the previous Nike and the US recession. At the moment Nike products customers want to purchase will fall to low standards and Nike has worked poorly during the economic crisis. Since the Asian economy is based on the US economy, Asia is affected by the crisis and the product and manufacturing industries are mainly based in Asia in China, so the recession facing Asia will have an impact on Nike. In the economic crisis, labor costs and material expenses will increase. Nike will face low sales before the euro and Asian recession, although Nike's turnover may be low, Nike sneaker's turnover is stable. (Gwendolycizon 2009)

Technical analysis - Nike is the leader in the world of sports. It is a technology that uses a high-tech system to lead Nike to the highest peak. The marketing information system Nike uses is highly effective for the company; Nike uses IT for three categories of economics: marketing information systems in innovation, segmentation, and differentiation from Nike business. Nike's leadership system technology plays an important role in the value of the company and IT, from product to development to sales. Nike is the top seller and manufacturer of the world's sports industry, can influence the environment and strengthen marketing. This strategy has increased sales of Nike products. (Gwendolycizon 2009)