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 34.81 is considered Fairly compared with the five-year average of 34.47. The fair price of Nike Inc (NKE) is between 52.40 to 70.64 according to relative valuation methord.
Relative Value
Fair Zone
52.40-70.64
Current Price：65.65
Fair
34.84
PE
1Y
3Y
5Y
Trailing
Forward
23.87
EV/EBITDA
Nike Inc. (NKE) has a current EV/EBITDA of 23.87. The 5-year average EV/EBITDA is 25.63. The thresholds are as follows: Strongly Undervalued below 17.61, Undervalued between 17.61 and 21.62, Fairly Valued between 29.64 and 21.62, Overvalued between 29.64 and 33.65, and Strongly Overvalued above 33.65. The current Forward EV/EBITDA of 23.87 falls within the Historic Trend Line -Fairly Valued range.
28.82
EV/EBIT
Nike Inc. (NKE) has a current EV/EBIT of 28.82. The 5-year average EV/EBIT is 29.38. The thresholds are as follows: Strongly Undervalued below 19.80, Undervalued between 19.80 and 24.59, Fairly Valued between 34.16 and 24.59, Overvalued between 34.16 and 38.95, and Strongly Overvalued above 38.95. The current Forward EV/EBIT of 28.82 falls within the Historic Trend Line -Fairly Valued range.
2.05
PS
Nike Inc. (NKE) has a current PS of 2.05. The 5-year average PS is 3.42. The thresholds are as follows: Strongly Undervalued below 1.34, Undervalued between 1.34 and 2.38, Fairly Valued between 4.46 and 2.38, Overvalued between 4.46 and 5.50, and Strongly Overvalued above 5.50. The current Forward PS of 2.05 falls within the Undervalued range.
33.32
P/OCF
Nike Inc. (NKE) has a current P/OCF of 33.32. The 5-year average P/OCF is 28.96. The thresholds are as follows: Strongly Undervalued below 8.62, Undervalued between 8.62 and 18.79, Fairly Valued between 39.13 and 18.79, Overvalued between 39.13 and 49.30, and Strongly Overvalued above 49.30. The current Forward P/OCF of 33.32 falls within the Historic Trend Line -Fairly Valued range.
56.96
P/FCF
Nike Inc. (NKE) has a current P/FCF of 56.96. The 5-year average P/FCF is 37.22. The thresholds are as follows: Strongly Undervalued below 8.51, Undervalued between 8.51 and 22.86, Fairly Valued between 51.58 and 22.86, Overvalued between 51.58 and 65.94, and Strongly Overvalued above 65.94. The current Forward P/FCF of 56.96 falls within the Overvalued range.
Nike Inc (NKE) has a current Price-to-Book (P/B) ratio of 7.20. Compared to its 3-year average P/B ratio of 9.71 , the current P/B ratio is approximately -25.84% higher. Relative to its 5-year average P/B ratio of 12.12, the current P/B ratio is about -40.62% higher. Nike Inc (NKE) has a Forward Free Cash Flow (FCF) yield of approximately 0.00%. Compared to its 3-year average FCF yield of 3.65%, the current FCF yield is approximately -100.00% lower. Relative to its 5-year average FCF yield of 3.12% , the current FCF yield is about -100.00% lower.
7.20
P/B
Median3y
9.71
Median5y
12.12
3.10
FCF Yield
Median3y
3.65
Median5y
3.12
Competitors Valuation Multiple
The average P/S ratio for NKE's competitors is 1.48, providing a benchmark for relative valuation. Nike Inc Corp (NKE) exhibits a P/S ratio of , which is -100.00% 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 13.19% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 28.74 to 33.72.
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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