Nike Inc. (NYSE:NKE)

The valuation ratios exhibit considerable fluctuation over the observed period, spanning from August 2020 to November 2025. A general trend towards lower multiples is apparent in the later periods, though significant outliers exist. Initial values are relatively high, particularly for Price to Earnings (P/E) and Price to Sales (P/S), before decreasing through early 2022. A subsequent period of relative stability is followed by more pronounced declines in 2024, with substantial anomalies appearing in the final reporting periods.

Price to Earnings (P/E)

The P/E ratio began at 75.70 in August 2020, decreasing to a low of 28.96 by May 2022. It experienced a moderate increase to 33.73 by February 2023, then resumed a downward trajectory, reaching 18.78 in May 2024. A significant outlier of 2,227.69 is recorded in February 2025, followed by a return to 37.89 in May 2025 and 35.89 in August 2025. This extreme value warrants further investigation as it dramatically skews the overall trend.

Price to Operating Profit (P/OP)

Similar to the P/E ratio, the P/OP ratio demonstrates a decline from 61.00 in August 2020 to 26.23 in May 2022. It showed some volatility between 2022 and 2024, with a low of 16.97 in May 2024. An outlier of 1,937.05 appears in February 2025, mirroring the anomaly in the P/E ratio, and is followed by values of 32.07 and 29.78 in subsequent periods.

Price to Sales (P/S)

The P/S ratio started at 5.45 in August 2020 and generally decreased to 2.08 by May 2024. A substantial outlier of 154.85 is observed in February 2025, followed by a decrease to 2.36 in May 2025 and 1.95 in August 2025. The P/S ratio exhibits the most pronounced decline overall, suggesting a significant change in investor valuation relative to revenue.

Price to Book Value (P/BV)

The P/BV ratio experienced a consistent decline from 22.08 in August 2020 to 7.42 in May 2024. It showed some recovery to 8.63 by August 2024, then decreased to 5.86 by February 2025. An outlier of 542.72 is recorded in February 2025, followed by values of 8.14 and 6.43 in subsequent periods. While exhibiting a downward trend, the P/BV ratio demonstrates less extreme volatility compared to the other ratios.

The consistent presence of extreme values in February 2025 across all ratios suggests a potential reporting error, a significant one-time event impacting financial performance, or a substantial change in market perception. Further investigation is required to understand the cause of these anomalies and their implications for valuation.

The price-to-earnings (P/E) ratio exhibited considerable fluctuation over the observed period, spanning from August 2020 to November 2025. Initially, the P/E ratio demonstrated a relatively high valuation, followed by a period of decline and subsequent volatility.

Initial Valuation & Decline (Aug 2020 – May 2022)

The P/E ratio began at 75.70 in August 2020, peaking at 78.79 in November 2020 before generally decreasing. This decline continued through May 2022, reaching a low of 28.96. This period suggests a contraction in valuation, potentially driven by changing investor sentiment or earnings expectations.

Volatility & Subsequent Increase (Aug 2022 – Feb 2025)

From August 2022 through February 2025, the P/E ratio experienced increased volatility. It rose to 33.20 in November 2022, then fluctuated, reaching a low of 18.20 in February 2025. This period indicates uncertainty in the market’s assessment of the company’s future earnings potential.

Extreme Outlier & Recent Trend (May 2025 – Nov 2025)

A significant outlier occurred in May 2025, with the P/E ratio reaching an exceptionally high value of 2,227.69. This extreme value is likely attributable to a substantial decrease in earnings per share (EPS) during that quarter, as the share price remained relatively stable. Following this outlier, the P/E ratio decreased to 35.89 in August 2025 and further to 61.19 in November 2025, suggesting a correction following the anomalous reading.

Throughout the period, the P/E ratio generally tracked inversely with earnings per share, as expected. Periods of increasing EPS tended to coincide with decreasing P/E ratios, and vice versa. However, the outlier in May 2025 demonstrates that even small changes in EPS can have a dramatic impact on the P/E ratio when earnings are very low.

Overall, the observed P/E ratio demonstrates a dynamic valuation profile, influenced by both share price movements and, more significantly, fluctuations in earnings per share. The recent trend suggests a potential stabilization, but continued monitoring is warranted given the historical volatility.

The Price to Operating Profit (P/OP) ratio exhibited considerable fluctuation over the observed period, spanning from August 2020 to November 2025. Initially, the ratio demonstrated a decreasing trend, followed by periods of volatility and, ultimately, a significant outlier before stabilizing somewhat. A general observation is that the ratio appears sensitive to changes in both share price and operating profit per share.

Initial Decreasing Trend (Aug 2020 - May 2021)

From August 2020 through May 2021, the P/OP ratio declined from 61.00 to 36.42. This decrease suggests that the market valuation, relative to operating profit, was becoming more compressed. This period coincided with increases in operating profit per share, but the share price increased at a faster rate initially, then slowed, contributing to the overall decline in the ratio.

Volatility and Stabilization (Aug 2021 - Feb 2023)

The period between August 2021 and February 2023 showed more erratic behavior, with the P/OP ratio fluctuating between 29.24 and 35.52. While there were increases and decreases, the ratio generally remained within a relatively narrow band, indicating a period of relative stability in the market’s valuation of operating profit. Operating profit per share remained relatively consistent during this time.

Significant Outlier (May 2025)

A dramatic spike in the P/OP ratio occurred in May 2025, reaching 1,937.05. This extreme value is primarily attributable to a substantial decrease in operating profit per share (to 0.04) while the share price remained relatively stable. This suggests a significant disconnect between market valuation and underlying profitability at that specific point in time, potentially indicating a temporary market anomaly or a specific event impacting reported earnings.

Recent Trend (Aug 2023 - Nov 2025)

From August 2023 to November 2025, the P/OP ratio experienced a decline from 25.51 to 61.19, then a spike to 1,937.05, and finally a decrease to 29.78. This recent period demonstrates a return towards levels observed in the earlier part of the analyzed timeframe, although the outlier in May 2025 significantly distorts the overall trend. The decrease in the ratio from the outlier suggests a correction in market valuation as operating profit per share recovered.

In summary, the P/OP ratio demonstrated a complex pattern over the analyzed period. While a general decreasing trend was initially observed, subsequent periods were characterized by volatility and a notable outlier. The ratio’s sensitivity to fluctuations in both share price and operating profit per share is evident throughout the observation window.

The price-to-sales (P/S) ratio exhibited considerable fluctuation throughout the observed period, beginning in August 2020 and extending to November 2025. Initially, the ratio demonstrated a slight increasing trend, followed by a period of decline and subsequent volatility.

Initial Trend (Aug 31, 2020 – Nov 30, 2021)

From August 2020 to November 2021, the P/S ratio generally increased, moving from 5.45 to 5.50. This suggests a period where the market valuation, relative to sales, was incrementally increasing. There were minor fluctuations within this timeframe, but the overall direction was upward.

Subsequent Decline and Volatility (Feb 28, 2022 – Aug 31, 2023)

Beginning in February 2022, a noticeable downward trend emerged. The P/S ratio decreased from 4.45 to 2.87 by August 2023. This decline indicates that the market was assigning a lower valuation to each dollar of sales during this period. The ratio experienced volatility within this decline, suggesting shifting investor sentiment.

Further Fluctuations and Outlier (Nov 30, 2023 – Nov 30, 2025)

From November 2023 onwards, the P/S ratio continued to fluctuate. A significant outlier was observed in May 2025, with a ratio of 154.85, representing a substantial increase from prior periods. This spike is likely attributable to an anomaly in the reported sales per share value of 0.47 for the same period. Excluding this outlier, the ratio generally ranged between 2.61 and 2.36, indicating a relatively stable, though low, valuation compared to earlier periods. The final reported value in November 2025 was 1.72, representing a continued downward trend from the prior period.

Overall, the P/S ratio demonstrates a shift from a higher valuation in the initial period to a lower, more volatile valuation in the later periods. The outlier in May 2025 requires further investigation to understand the underlying cause of the dramatic change in the ratio.

The price-to-book value (P/BV) ratio for the observed period demonstrates considerable fluctuation. Initially, the ratio exhibited a decreasing trend from August 2020 to February 2022, followed by a period of volatility and then a sharp increase before returning to lower levels. A detailed examination reveals specific patterns and potential insights.

Initial Decreasing Trend (Aug 31, 2020 – Feb 28, 2022)

From August 2020 through February 2022, the P/BV ratio generally declined from 22.08 to 14.06. This suggests that the market value of equity relative to its book value was decreasing during this period. This could be attributed to various factors, including changing investor sentiment, shifts in growth expectations, or adjustments in the perceived risk associated with the equity.

Volatility and Subsequent Spike (May 31, 2022 – Feb 29, 2024)

Following February 2022, the P/BV ratio experienced increased volatility. It initially decreased to a low of 8.92 in August 2022, then rose to 12.72 by February 2023, before declining again. A significant and anomalous spike occurred in May 2025, reaching 542.72. This extreme value is a substantial outlier and warrants further investigation to determine its cause, potentially stemming from an error in reported book value per share or an unusual market event. Following this spike, the ratio decreased substantially.

Recent Trend (Aug 31, 2024 – Nov 30, 2025)

From August 2024 through November 2025, the P/BV ratio exhibited a downward trend, decreasing from 8.63 to 5.86, with the exception of the aforementioned spike in May 2025. This recent decline indicates that the market is placing a lower valuation on the equity relative to its book value, potentially reflecting concerns about future profitability or increased risk. The ratio concluded the observed period at 5.86.

Book Value Per Share Trend

Book value per share generally increased from US$5.88 in August 2020 to US$10.11 in August 2022. It then remained relatively stable, fluctuating between approximately US$9.11 and US$9.62 until May 2025. The significant drop to US$0.13 in February 2025 likely contributed to the P/BV spike, as the ratio is calculated by dividing share price by book value per share. The book value per share then increased to US$9.51 in May 2025.

In summary, the P/BV ratio demonstrates a complex pattern over the analyzed period. While an initial decline and subsequent volatility are observable, the extreme outlier in May 2025 requires specific attention. The recent downward trend suggests a potential shift in market perception regarding the equity's value.