Enterprise Value to EBITDA (EV/EBITDA)
Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Nike Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
- Net Income
- The net income exhibited a marked increase from 2,539 million USD in 2020 to a peak of 6,046 million USD in 2022. Following this peak, there was a decline to 5,070 million USD in 2023, with a partial recovery to 5,700 million USD in 2024 before a significant drop to 3,219 million USD in 2025. This fluctuating pattern indicates variability in profitability with a recent downward trend.
- Earnings Before Tax (EBT)
- EBT followed a trajectory similar to net income, rising sharply from 2,887 million USD in 2020 to 6,661 million USD in 2021. It then stabilized around 6,651 million USD in 2022, slightly declined to 6,201 million USD in 2023, and rebounded to 6,700 million USD in 2024. However, a significant decrease occurred in 2025, with earnings falling to 3,885 million USD, signaling decreased profitability before taxes.
- Earnings Before Interest and Tax (EBIT)
- EBIT reflected robust growth from 3,038 million USD in 2020 to nearly 7,000 million USD in 2021 and 2022. It then declined to 6,492 million USD in 2023 but edged up again to 6,969 million USD in 2024. In 2025, EBIT dropped sharply to 4,182 million USD. Overall, EBIT trends indicate strong operational earnings with a recent notable decline.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- EBITDA showed consistent growth from 4,157 million USD in 2020 to a peak of 7,813 million USD in 2024, albeit with a minor reduction in 2023 to 7,351 million USD. In 2025, EBITDA decreased significantly to 4,990 million USD. This pattern points to overall improving operational cash flow abilities until the recent year, when a considerable contraction was observed.
- Summary
- The financial data demonstrates a general trend of growth in earnings and profitability from 2020 through 2022-2024, with peaks typically around 2022 and 2024 depending on the metric. However, 2025 reflects a sharp reversal with marked reductions in all earnings measures, indicating emerging challenges affecting profit generation and operational efficiency. The disparity between peak and trough values suggests volatility, and the recent downturn warrants close monitoring and analysis to identify underlying causes and potential corrective actions.
Enterprise Value to EBITDA Ratio, Current
Nike Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | 7,561,812) |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | 4,990) |
| Valuation Ratio | |
| EV/EBITDA | 1,515.39 |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| lululemon athletica inc. | 7.21 |
| EV/EBITDA, Sector | |
| Consumer Durables & Apparel | 731.27 |
| EV/EBITDA, Industry | |
| Consumer Discretionary | 48.02 |
Based on: 10-K (reporting date: 2025-05-31).
1 Click competitor name to see calculations.
If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.
Enterprise Value to EBITDA Ratio, Historical
Nike Inc., historical EV/EBITDA calculation, comparison to benchmarks
| May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | 7,169,759) | 104,396) | 162,776) | 171,515) | 248,616) | 154,410) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | 4,990) | 7,813) | 7,351) | 7,790) | 7,754) | 4,157) | |
| Valuation Ratio | |||||||
| EV/EBITDA3 | 1,436.83 | 13.36 | 22.14 | 22.02 | 32.06 | 37.14 | |
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| lululemon athletica inc. | 12.97 | 22.74 | 24.36 | 27.43 | 39.99 | 23.64 | |
| EV/EBITDA, Sector | |||||||
| Consumer Durables & Apparel | — | 15.67 | 22.55 | 22.92 | 32.97 | 34.40 | |
| EV/EBITDA, Industry | |||||||
| Consumer Discretionary | — | 20.91 | 18.33 | 20.01 | 21.51 | 29.73 | |
Based on: 10-K (reporting date: 2025-05-31), 10-K (reporting date: 2024-05-31), 10-K (reporting date: 2023-05-31), 10-K (reporting date: 2022-05-31), 10-K (reporting date: 2021-05-31), 10-K (reporting date: 2020-05-31).
3 2025 Calculation
EV/EBITDA = EV ÷ EBITDA
= 7,169,759 ÷ 4,990 = 1,436.83
4 Click competitor name to see calculations.
The financial data reveals notable fluctuations in key metrics over the observed periods, highlighting evolving valuation and operational performance trends.
- Enterprise Value (EV)
- The enterprise value demonstrated considerable variability, increasing from $154.41 billion in May 2020 to a peak of approximately $248.62 billion in May 2021. Following this peak, EV declined steadily over the next three years, reaching $104.39 billion by May 2024. However, there is a significant and extraordinary rise to approximately $7.17 trillion in the latest period, an anomaly that suggests either a substantial event or data irregularity requiring further investigation.
- Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)
- The EBITDA showed a generally steady upward trend from $4.16 billion in May 2020 to $7.81 billion in May 2024, indicating improving operational profitability. Although there was a minor dip in May 2023 relative to the prior year, the overall growth across the five-year span is evident. In the latest period, EBITDA declined to $4.99 billion, which contrasts with the previous upward trend and coincides with the aforementioned sharp increase in EV.
- EV/EBITDA Ratio
- This valuation multiple declined consistently from 37.14 in May 2020 to 13.36 in May 2024, reflecting a relative reduction in enterprise value against earnings, which could indicate improved market efficiency or changing investor perceptions about growth prospects and risk. The extraordinary spike to 1436.83 in the most recent period is highly unusual and suggests either a distortion due to the extreme increase in EV or a significant drop in EBITDA. This ratio diverges sharply from historical trends and warrants further scrutiny to understand the underlying causes.
Overall, the data portrays a period of increasing operational earnings and fluctuating valuation metrics up to May 2024, followed by extreme and potentially anomalous values in the latest year, which may impact the interpretation of the company's financial health and market valuation.