NKE Relative Valuation
NKE's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, NKE is overvalued; if below, it's undervalued.
Historical Valuation
Nike Inc (NKE) is now in the Fair zone, suggesting that its current forward PE ratio of 33.27 is considered Fairly compared with the five-year average of 34.54. The fair price of Nike Inc (NKE) is between 51.14 to 69.38 according to relative valuation methord.
Relative Value
Fair Zone
51.14-69.38
Current Price：62.21
Fair
33.27
PE
1Y
3Y
5Y
Trailing
Forward
23.35
EV/EBITDA
Nike Inc. (NKE) has a current EV/EBITDA of 23.35. The 5-year average EV/EBITDA is 25.72. The thresholds are as follows: Strongly Undervalued below 17.60, Undervalued between 17.60 and 21.66, Fairly Valued between 29.78 and 21.66, Overvalued between 29.78 and 33.84, and Strongly Overvalued above 33.84. The current Forward EV/EBITDA of 23.35 falls within the Historic Trend Line -Fairly Valued range.
28.19
EV/EBIT
Nike Inc. (NKE) has a current EV/EBIT of 28.19. The 5-year average EV/EBIT is 29.45. The thresholds are as follows: Strongly Undervalued below 19.72, Undervalued between 19.72 and 24.59, Fairly Valued between 34.31 and 24.59, Overvalued between 34.31 and 39.18, and Strongly Overvalued above 39.18. The current Forward EV/EBIT of 28.19 falls within the Historic Trend Line -Fairly Valued range.
62.90
PS
Nike Inc. (NKE) has a current PS of 62.90. The 5-year average PS is 4.21. The thresholds are as follows: Strongly Undervalued below -9.11, Undervalued between -9.11 and -2.45, Fairly Valued between 10.87 and -2.45, Overvalued between 10.87 and 17.52, and Strongly Overvalued above 17.52. The current Forward PS of 62.90 falls within the Strongly Overvalued range.
32.57
P/OCF
Nike Inc. (NKE) has a current P/OCF of 32.57. The 5-year average P/OCF is 29.07. The thresholds are as follows: Strongly Undervalued below 8.04, Undervalued between 8.04 and 18.55, Fairly Valued between 39.58 and 18.55, Overvalued between 39.58 and 50.09, and Strongly Overvalued above 50.09. The current Forward P/OCF of 32.57 falls within the Historic Trend Line -Fairly Valued range.
55.67
P/FCF
Nike Inc. (NKE) has a current P/FCF of 55.67. The 5-year average P/FCF is 36.89. The thresholds are as follows: Strongly Undervalued below 8.31, Undervalued between 8.31 and 22.60, Fairly Valued between 51.18 and 22.60, Overvalued between 51.18 and 65.47, and Strongly Overvalued above 65.47. The current Forward P/FCF of 55.67 falls within the Overvalued range.
Nike Inc (NKE) has a current Price-to-Book (P/B) ratio of 6.90. Compared to its 3-year average P/B ratio of 9.76 , the current P/B ratio is approximately -29.36% higher. Relative to its 5-year average P/B ratio of 12.26, the current P/B ratio is about -43.73% higher. Nike Inc (NKE) has a Forward Free Cash Flow (FCF) yield of approximately 0.03%. Compared to its 3-year average FCF yield of 3.63%, the current FCF yield is approximately -99.11% lower. Relative to its 5-year average FCF yield of 3.10% , the current FCF yield is about -98.96% lower.
6.90
P/B
Median3y
9.76
Median5y
12.26
0.03
FCF Yield
Median3y
3.63
Median5y
3.10
Competitors Valuation Multiple
The average P/S ratio for NKE's competitors is 120.28, providing a benchmark for relative valuation. Nike Inc Corp (NKE) exhibits a P/S ratio of 62.90, which is -47.70% above the industry average. Given its robust revenue growth of 1.13%, this premium appears unsustainable.
P/S
P/E
EV/EBITDA
EV/EBIT
P/S
Revenue Growth
Market Cap
Performance Decomposition
1Y
3Y
5Y
Market capitalization of NKE decreased by 20.15% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 29.26 to 32.29.
The secondary factor is the Revenue Growth, contributed 1.13%to the performance.
Overall, the performance of NKE in the past 1 year is driven by P/E Change. Which is more unsustainable.
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