NKE Valuation

Nike Inc

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77.370

-0.55(-0.706%)1D

Overview
Forecast
Valuation
Earnings

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 Overvalued zone, suggesting that its current forward PE ratio of 47.14 is considered Overvalued compared with the five-year average of 34.74. The fair price of Nike Inc (NKE) is between 47.18 to 63.31 according to relative valuation methord. Compared to the current price of 77.92 USD , Nike Inc is Overvalued By 23.07%.

Relative Value

Fair Zone

47.18-63.31

Current Price：77.92

23.07%

Overvalued

46.80

Trailing

Forward

31.71

EV/EBITDA

Nike Inc. (NKE) has a current EV/EBITDA of 31.71. The 5-year average EV/EBITDA is 25.89. The thresholds are as follows: Strongly Undervalued below 17.70, Undervalued between 17.70 and 21.79, Fairly Valued between 29.98 and 21.79, Overvalued between 29.98 and 34.08, and Strongly Overvalued above 34.08. The current Forward EV/EBITDA of 31.71 falls within the Overvalued range.

39.46

EV/EBIT

Nike Inc. (NKE) has a current EV/EBIT of 39.46. The 5-year average EV/EBIT is 29.65. The thresholds are as follows: Strongly Undervalued below 19.75, Undervalued between 19.75 and 24.70, Fairly Valued between 34.60 and 24.70, Overvalued between 34.60 and 39.54, and Strongly Overvalued above 39.54. The current Forward EV/EBIT of 39.46 falls within the Overvalued range.

2.51

Nike Inc. (NKE) has a current PS of 2.51. The 5-year average PS is 3.55. The thresholds are as follows: Strongly Undervalued below 1.51, Undervalued between 1.51 and 2.53, Fairly Valued between 4.57 and 2.53, Overvalued between 4.57 and 5.59, and Strongly Overvalued above 5.59. The current Forward PS of 2.51 falls within the Undervalued range.

39.29

P/OCF

Nike Inc. (NKE) has a current P/OCF of 39.29. The 5-year average P/OCF is 30.07. The thresholds are as follows: Strongly Undervalued below 6.85, Undervalued between 6.85 and 18.46, Fairly Valued between 41.68 and 18.46, Overvalued between 41.68 and 53.29, and Strongly Overvalued above 53.29. The current Forward P/OCF of 39.29 falls within the Historic Trend Line -Fairly Valued range.

61.45

P/FCF

Nike Inc. (NKE) has a current P/FCF of 61.45. The 5-year average P/FCF is 37.48. The thresholds are as follows: Strongly Undervalued below 8.15, Undervalued between 8.15 and 22.82, Fairly Valued between 52.15 and 22.82, Overvalued between 52.15 and 66.82, and Strongly Overvalued above 66.82. The current Forward P/FCF of 61.45 falls within the Overvalued range.

Nike Inc (NKE) has a current Price-to-Book (P/B) ratio of 8.70. Compared to its 3-year average P/B ratio of 9.92 , the current P/B ratio is approximately -12.22% higher. Relative to its 5-year average P/B ratio of 12.86, the current P/B ratio is about -32.33% higher. Nike Inc (NKE) has a Forward Free Cash Flow (FCF) yield of approximately 2.83%. Compared to its 3-year average FCF yield of 3.59%, the current FCF yield is approximately -21.07% lower. Relative to its 5-year average FCF yield of 3.02% , the current FCF yield is about -6.00% lower.

8.64

P/B

Median3y

9.92

Median5y

12.86

2.84

FCF Yield

Median3y

3.59

Median5y

3.02

Competitors Valuation Multiple

The average P/S ratio for NKE's competitors is 2.68, providing a benchmark for relative valuation. Nike Inc Corp (NKE) exhibits a P/S ratio of 2.51, which is -6.48% above the industry average. Given its robust revenue growth of -11.97%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Lululemon Athletica Inc

Gildan Activewear Inc

2.32

6.53%

8.15B

Performance Decomposition

Market capitalization of NKE decreased by 6.73% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 18.93 to 35.82.

The secondary factor is the Revenue Growth, contributed -11.97%to the performance.

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

-11.97%

12.61B → 11.10B

Revenue Growth

-84.03%

11.90 → 1.90

Margin Expansion

89.27%

18.93 → 35.82

P/E Change

-6.73%