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
Historical Valuation Ratios (Summary)
Price to Earnings (P/E)
Price to Operating Profit (P/OP)
Price to Sales (P/S)
Price to Book Value (P/BV)

Nike Inc., current price multiples

	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.

Nike Inc., historical price multiples

	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.

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

	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 price^1, 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.

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

	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 price^1, 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.

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

	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 price^1, 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.

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

	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 price^1, 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.

Nike Inc. (NYSE:NKE)

Common Stock Valuation Ratios (Price Multiples)

Current Valuation Ratios

Historical Valuation Ratios (Summary)

Price to Earnings (P/E)

Price to Operating Profit (P/OP)

Price to Sales (P/S)

Price to Book Value (P/BV)