NKE PE Ratio & Valuation,Is NKE Overvalued

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 32.91 is considered Fairly compared with the five-year average of 34.34. The fair price of Nike Inc (NKE) is between 55.20 to 74.25 according to relative valuation methord.

Relative Value

Fair Zone

55.20-74.25

Current Price：65.26

Fair

32.91

22.97

EV/EBITDA

Nike Inc. (NKE) has a current EV/EBITDA of 22.97. The 5-year average EV/EBITDA is 25.52. The thresholds are as follows: Strongly Undervalued below 17.52, Undervalued between 17.52 and 21.52, Fairly Valued between 29.52 and 21.52, Overvalued between 29.52 and 33.52, and Strongly Overvalued above 33.52. The current Forward EV/EBITDA of 22.97 falls within the Historic Trend Line -Fairly Valued range.

27.04

EV/EBIT

Nike Inc. (NKE) has a current EV/EBIT of 27.04. The 5-year average EV/EBIT is 29.25. The thresholds are as follows: Strongly Undervalued below 19.73, Undervalued between 19.73 and 24.49, Fairly Valued between 34.01 and 24.49, Overvalued between 34.01 and 38.77, and Strongly Overvalued above 38.77. The current Forward EV/EBIT of 27.04 falls within the Historic Trend Line -Fairly Valued range.

1.98

Nike Inc. (NKE) has a current PS of 1.98. The 5-year average PS is 3.37. The thresholds are as follows: Strongly Undervalued below 1.29, Undervalued between 1.29 and 2.33, Fairly Valued between 4.41 and 2.33, Overvalued between 4.41 and 5.45, and Strongly Overvalued above 5.45. The current Forward PS of 1.98 falls within the Undervalued range.

37.22

P/OCF

Nike Inc. (NKE) has a current P/OCF of 37.22. The 5-year average P/OCF is 28.71. The thresholds are as follows: Strongly Undervalued below 9.07, Undervalued between 9.07 and 18.89, Fairly Valued between 38.53 and 18.89, Overvalued between 38.53 and 48.34, and Strongly Overvalued above 48.34. The current Forward P/OCF of 37.22 falls within the Historic Trend Line -Fairly Valued range.

65.86

P/FCF

Nike Inc. (NKE) has a current P/FCF of 65.86. The 5-year average P/FCF is 37.32. The thresholds are as follows: Strongly Undervalued below 8.12, Undervalued between 8.12 and 22.72, Fairly Valued between 51.93 and 22.72, Overvalued between 51.93 and 66.53, and Strongly Overvalued above 66.53. The current Forward P/FCF of 65.86 falls within the Overvalued range.

Nike Inc (NKE) has a current Price-to-Book (P/B) ratio of 6.65. Compared to its 3-year average P/B ratio of 9.57 , the current P/B ratio is approximately -30.55% higher. Relative to its 5-year average P/B ratio of 11.88, the current P/B ratio is about -44.04% higher. Nike Inc (NKE) has a Forward Free Cash Flow (FCF) yield of approximately 2.64%. Compared to its 3-year average FCF yield of 3.71%, the current FCF yield is approximately -28.71% lower. Relative to its 5-year average FCF yield of 3.14% , the current FCF yield is about -15.81% lower.

6.65

P/B

Median3y

9.57

Median5y

11.88

2.64

FCF Yield

Median3y

3.71

Median5y

3.14

Competitors Valuation Multiple

The average P/S ratio for NKE's competitors is 2.48, providing a benchmark for relative valuation. Nike Inc Corp (NKE) exhibits a P/S ratio of 1.98, which is -20.47% above the industry average. Given its robust revenue growth of 0.59%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

Revenue Growth

Market Cap

Performance Decomposition

Market capitalization of NKE decreased by 17.79% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 32.57 to 37.10.

The secondary factor is the Revenue Growth, contributed 0.59%to the performance.

Overall, the performance of NKE in the past 1 year is driven by P/E Change. Which is more unsustainable.

0.59%

12.35B → 12.43B

Revenue Growth

-32.31%

9.41 → 6.37

Margin Expansion

13.93%

32.57 → 37.10

P/E Change

-17.79%

76.90 → 63.22

Mkt Cap Growth

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Frequently Asked Questions

Is Nike Inc (NKE) currently overvalued or undervalued?

What is Nike Inc (NKE) fair value?

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. The fair price of Nike Inc (NKE) is between 55.20 to 74.25 according to relative valuation methord.

How does NKE's valuation metrics compare to the industry average?

What is the current P/B ratio for Nike Inc (NKE) as of Jan 09 2026?

As of Jan 09 2026, Nike Inc (NKE) has a P/B ratio of 6.65. This indicates that the market values NKE at 6.65 times its book value.

What is the current FCF Yield for Nike Inc (NKE) as of Jan 09 2026?

As of Jan 09 2026, Nike Inc (NKE) has a FCF Yield of 2.64%. This means that for every dollar of Nike Inc’s market capitalization, the company generates 2.64 cents in free cash flow.

What is the current Forward P/E ratio for Nike Inc (NKE) as of Jan 09 2026?

As of Jan 09 2026, Nike Inc (NKE) has a Forward P/E ratio of 32.91. This means the market is willing to pay $32.91 for every dollar of Nike Inc’s expected earnings over the next 12 months.

What is the current Forward P/S ratio for Nike Inc (NKE) as of Jan 09 2026?

As of Jan 09 2026, Nike Inc (NKE) has a Forward P/S ratio of 1.98. This means the market is valuing NKE at $1.98 for every dollar of expected revenue over the next 12 months.

NKE Valuation