Stock Analysis on Net
Stock Analysis on Net

Nike Inc. (NYSE:NKE)

Common Stock Valuation Ratios (Price Multiples)

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Valuation ratios measure the quantity of an asset or flaw (e.g., earnings) associated with ownership of a specified claim (e.g., a share of ownership of the enterprise).


Current Valuation Ratios

Nike Inc., current price multiples

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Nike Inc. Consumer Discretionary
Selected Financial Data
Current share price (P) $163.48
No. shares of common stock outstanding 1,582,817,717
Growth rate (g) 21.67%
 
Earnings per share (EPS) $3.62
Next year expected EPS $4.40
Operating profit per share $4.38
Sales per share $28.14
Book value per share (BVPS) $8.07
Valuation Ratios (Price Multiples)
Price to earnings (P/E) 45.18 69.77
Price to next year expected earnings 37.14 57.11
Price-earnings-growth (PEG) 2.09 3.15
Price to operating profit (P/OP) 37.30 55.18
Price to sales (P/S) 5.81 4.47
Price to book value (P/BV) 20.27 23.43

Based on: 10-K (filing date: 2021-07-20).

If the company price multiple is lower then the price multiple of benchmark then company stock is relatively undervalued.
Otherwise, if the company price multiple is higher then the price multiple of benchmark then company stock is relatively overvalued.


Historical Valuation Ratios (Summary)

Nike Inc., historical price multiples

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
Price to earnings (P/E) 44.12 60.47 33.72 63.89 22.90 25.43
Price to operating profit (P/OP) 36.42 49.29 28.47 27.78 20.45 21.24
Price to sales (P/S) 5.67 4.11 3.47 3.39 2.83 2.95
Price to book value (P/BV) 19.79 19.06 15.03 12.59 7.83 7.80

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Nike Inc.’s P/E ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Nike Inc.’s P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Nike Inc.’s P/S ratio increased from 2019 to 2020 and from 2020 to 2021.
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Nike Inc.’s P/BV ratio increased from 2019 to 2020 and from 2020 to 2021.

Price to Earnings (P/E)

Nike Inc., historical P/E calculation, comparison to benchmarks

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
No. shares of common stock outstanding1 1,581,801,224 1,559,888,549 1,566,888,373 1,600,554,538 1,643,195,065 1,677,618,635
Selected Financial Data (US$)
Net income (in millions) 5,727  2,539  4,029  1,933  4,240  3,760 
Earnings per share (EPS)2 3.62 1.63 2.57 1.21 2.58 2.24
Share price1, 3 159.74 98.43 86.70 77.16 59.10 56.99
Valuation Ratio
P/E ratio4 44.12 60.47 33.72 63.89 22.90 25.43
Benchmarks
P/E Ratio, Industry
Consumer Discretionary 58.88 37.25 33.43 55.10 29.79

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
EPS = Net income ÷ No. shares of common stock outstanding
= 5,727,000,000 ÷ 1,581,801,224 = 3.62

3 Closing price as at the filing date of Nike Inc.’s Annual Report.

4 2021 Calculation
P/E ratio = Share price ÷ EPS
= 159.74 ÷ 3.62 = 44.12

Valuation ratio Description The company
P/E ratio The P/E ratio tells analyst how much an investor in common stock pays per dollar of current earnings. Nike Inc.’s P/E ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Operating Profit (P/OP)

Nike Inc., historical P/OP calculation, comparison to benchmarks

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May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
No. shares of common stock outstanding1 1,581,801,224 1,559,888,549 1,566,888,373 1,600,554,538 1,643,195,065 1,677,618,635
Selected Financial Data (US$)
Operating income (in millions) 6,937  3,115  4,772  4,445  4,749  4,502 
Operating profit per share2 4.39 2.00 3.05 2.78 2.89 2.68
Share price1, 3 159.74 98.43 86.70 77.16 59.10 56.99
Valuation Ratio
P/OP ratio4 36.42 49.29 28.47 27.78 20.45 21.24
Benchmarks
P/OP Ratio, Industry
Consumer Discretionary 46.57 28.95 24.92 24.22 20.27

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Operating profit per share = Operating income ÷ No. shares of common stock outstanding
= 6,937,000,000 ÷ 1,581,801,224 = 4.39

3 Closing price as at the filing date of Nike Inc.’s Annual Report.

4 2021 Calculation
P/OP ratio = Share price ÷ Operating profit per share
= 159.74 ÷ 4.39 = 36.42

Valuation ratio Description The company
P/OP ratio Because P/E ratio is calculated using net income, the ratio can be sensitive to nonrecurring earnings and capital structure, analysts may use price to operating profit. Nike Inc.’s P/OP ratio increased from 2019 to 2020 but then slightly decreased from 2020 to 2021 not reaching 2019 level.

Price to Sales (P/S)

Nike Inc., historical P/S calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
No. shares of common stock outstanding1 1,581,801,224 1,559,888,549 1,566,888,373 1,600,554,538 1,643,195,065 1,677,618,635
Selected Financial Data (US$)
Revenues (in millions) 44,538  37,403  39,117  36,397  34,350  32,376 
Sales per share2 28.16 23.98 24.96 22.74 20.90 19.30
Share price1, 3 159.74 98.43 86.70 77.16 59.10 56.99
Valuation Ratio
P/S ratio4 5.67 4.11 3.47 3.39 2.83 2.95
Benchmarks
P/S Ratio, Industry
Consumer Discretionary 3.78 2.50 2.24 2.27 1.85

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
Sales per share = Revenues ÷ No. shares of common stock outstanding
= 44,538,000,000 ÷ 1,581,801,224 = 28.16

3 Closing price as at the filing date of Nike Inc.’s Annual Report.

4 2021 Calculation
P/S ratio = Share price ÷ Sales per share
= 159.74 ÷ 28.16 = 5.67

Valuation ratio Description The company
P/S ratio An rationale for the P/S ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as EPS or book value. Sales are also more stable than earnings and never negative. Nike Inc.’s P/S ratio increased from 2019 to 2020 and from 2020 to 2021.

Price to Book Value (P/BV)

Nike Inc., historical P/BV calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
May 31, 2021 May 31, 2020 May 31, 2019 May 31, 2018 May 31, 2017 May 31, 2016
No. shares of common stock outstanding1 1,581,801,224 1,559,888,549 1,566,888,373 1,600,554,538 1,643,195,065 1,677,618,635
Selected Financial Data (US$)
Shareholders’ equity (in millions) 12,767  8,055  9,040  9,812  12,407  12,258 
Book value per share (BVPS)2 8.07 5.16 5.77 6.13 7.55 7.31
Share price1, 3 159.74 98.43 86.70 77.16 59.10 56.99
Valuation Ratio
P/BV ratio4 19.79 19.06 15.03 12.59 7.83 7.80
Benchmarks
P/BV Ratio, Industry
Consumer Discretionary 19.77 15.94 13.64 12.93 9.48

Based on: 10-K (filing date: 2021-07-20), 10-K (filing date: 2020-07-24), 10-K (filing date: 2019-07-23), 10-K (filing date: 2018-07-25), 10-K (filing date: 2017-07-20), 10-K (filing date: 2016-07-21).

1 Data adjusted for splits and stock dividends.

2 2021 Calculation
BVPS = Shareholders’ equity ÷ No. shares of common stock outstanding
= 12,767,000,000 ÷ 1,581,801,224 = 8.07

3 Closing price as at the filing date of Nike Inc.’s Annual Report.

4 2021 Calculation
P/BV ratio = Share price ÷ BVPS
= 159.74 ÷ 8.07 = 19.79

Valuation ratio Description The company
P/BV ratio The P/BV ratio is interpreted as an indicator of market judgment about the relationship between a company’s required rate of return and its actual rate of return. Nike Inc.’s P/BV ratio increased from 2019 to 2020 and from 2020 to 2021.