Enterprise Value to EBITDA (EV/EBITDA)
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Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
Nike Inc., EBITDA calculation
US$ in millions
Based on: 10-K (reporting date: 2026-05-31), 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).
The financial performance from May 31, 2021, to May 31, 2026, is characterized by a period of relative stability followed by a significant contraction in operational earnings capacity.
- EBITDA Trend Analysis
- Between 2021 and 2024, EBITDA demonstrated resilience, fluctuating within a narrow range between US$ 7.35 billion and US$ 7.81 billion. A peak was reached in 2024 at US$ 7.81 billion, indicating consistent operational cash flow generation. However, a precipitous decline occurred in 2025, with EBITDA dropping to US$ 4.99 billion, a decrease of approximately 36% from the 2024 peak. This downward trend persisted into 2026, with a further slight decrease to US$ 4.92 billion.
- Earnings Tier Correlation
- A strong positive correlation is observed across all earnings metrics. The decline in EBITDA in 2025 and 2026 is mirrored in EBIT, EBT, and Net Income, suggesting that the reduction in profitability is driven by fundamental operational challenges or revenue contractions rather than isolated financial adjustments. The spread between EBITDA and EBIT remained relatively stable throughout the period, indicating that depreciation and amortization expenses did not fluctuate significantly relative to the overall drop in earnings.
- Profitability Stability and Volatility
- The period from 2021 to 2024 exhibited low volatility, with Net Income and EBITDA maintaining a steady plateau. The sharp pivot observed in 2025 represents a significant structural shift in profitability. While the marginal difference between the 2025 and 2026 figures suggests a possible stabilization of earnings at a lower baseline, the operational output remains substantially below the historical benchmarks established in the first four years of the analyzed period.
Enterprise Value to EBITDA Ratio, Current
Nike Inc., current EV/EBITDA calculation, comparison to benchmarks
| Selected Financial Data (US$ in millions) | |
| Enterprise value (EV) | |
| Earnings before interest, tax, depreciation and amortization (EBITDA) | |
| Valuation Ratio | |
| EV/EBITDA | |
| Benchmarks | |
| EV/EBITDA, Competitors1 | |
| lululemon athletica inc. | |
| EV/EBITDA, Sector | |
| Consumer Durables & Apparel | |
| EV/EBITDA, Industry | |
| Consumer Discretionary | |
Based on: 10-K (reporting date: 2026-05-31).
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, 2026 | May 31, 2025 | May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Enterprise value (EV)1 | |||||||
| Earnings before interest, tax, depreciation and amortization (EBITDA)2 | |||||||
| Valuation Ratio | |||||||
| EV/EBITDA3 | |||||||
| Benchmarks | |||||||
| EV/EBITDA, Competitors4 | |||||||
| lululemon athletica inc. | |||||||
| EV/EBITDA, Sector | |||||||
| Consumer Durables & Apparel | |||||||
| EV/EBITDA, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2026-05-31), 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).
3 2026 Calculation
EV/EBITDA = EV ÷ EBITDA
= ÷ =
4 Click competitor name to see calculations.
The financial trajectory from May 31, 2021, to May 31, 2026, is characterized by a substantial contraction in market valuation and a late-period decline in operational earnings. This combination has resulted in a volatile EV/EBITDA ratio, reflecting a significant shift in how the market values the organization's core profitability over the six-year period.
- Enterprise Value (EV) Trends
- A pronounced downward trajectory is observed in Enterprise Value, which fell from 248,614 million US$ in 2021 to 62,364 million US$ by 2026. While there was a brief stabilization and slight increase to 106,594 million US$ in 2025, the overall trend indicates a massive reduction in the total market value of the firm.
- EBITDA Performance
- Earnings before interest, tax, depreciation, and amortization remained relatively resilient from 2021 through 2024, maintaining a range between 7,351 million US$ and 7,813 million US$. However, a sharp decline occurred in 2025, with EBITDA falling to 4,990 million US$, and continuing to decrease to 4,925 million US$ in 2026. This represents a significant erosion of operational cash flow in the final two years of the analyzed period.
- EV/EBITDA Ratio Analysis
- The EV/EBITDA ratio exhibits significant fluctuation, starting at a peak of 32.06 in 2021, indicating a high valuation premium. This ratio corrected sharply to approximately 22.0 in 2022 and 2023, before dropping further to 13.36 in 2024. A temporary increase to 21.36 is noted in 2025, which can be attributed to the decrease in EBITDA occurring more rapidly than the movement in Enterprise Value. The period concludes with a ratio of 12.66 in 2026, the lowest in the series, suggesting a substantial compression in the valuation multiple relative to earnings.