Nike Inc. (NYSE:NKE)

Price to Earnings (P/E) Ratio

The P/E ratio shows a clear downward trend from August 2020 through August 2025, starting at 75.7 and gradually decreasing to a range generally between 18 and 30. This decline reflects a reduction in the market price relative to earnings, possibly indicating improved earnings, a market reassessment of growth prospects, or increased risk perceptions over time. Anomalies are observed in the extremely high spike to 2227.69 in May 2025, which is an outlier and may suggest either data irregularity or extraordinary circumstances affecting earnings or market valuation at that point.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio similarly follows a declining trajectory from 61 in August 2020 to values mostly between 16 and 30 by August 2025. This consistent decline implies a reduced premium on operating profits, potentially demonstrating operational improvements or shifts in market valuation standards. The notable spike to 1937.05 in May 2025 parallels the anomaly seen in the P/E ratio, warranting further investigation for that period.

Price to Sales (P/S) Ratio

The P/S ratio declines from an initial 5.45 to generally lower levels around 2 to 3 by August 2025, indicating a decrease in market valuation relative to sales. This suggests that either sales growth has not kept pace with market valuation or that investors apply a more conservative multiple on sales over time. The exception is a sharp jump to 154.85 in May 2025, corresponding with spikes in other valuation multiples, suggesting unusual or non-recurring factors influencing valuations during that quarter.

Price to Book Value (P/BV) Ratio

The P/BV ratio decreases steadily from over 22 in August 2020 down to values below 10 by August 2025, reflecting a diminishing market premium over book value. This decline could indicate changing investor expectations about asset values or returns on equity. Once again, a significant spike to 542.72 in May 2025 appears as an outlier, consistent with valuation spikes in other metrics.

Overall Insights

The observed ratios consistently trend downward over the approximately five-year timeframe, suggesting a market adjustment in valuation multiples, potentially linked to changing earnings performance, growth expectations, or market conditions. The repeated spike in May 2025 across all ratios is a considerable anomaly that should be closely examined. This could relate to extraordinary events, restatements, or errors. Outside of this anomaly, the general trend points to a lower valuation environment compared to the earlier years, with reduced premiums on earnings, operating profits, sales, and book value.

Share Price Trends

The share price showed initial growth from 129.71 USD in August 2020, peaking near 161.04 USD in November 2021. Following this peak, a sustained decline occurred through mid-2024, reaching a low of approximately 55.58 USD in February 2025. Subsequently, a modest recovery is observed, with the price rising to around 74.20 USD by August 2025. This pattern illustrates significant volatility and a downward trend after late 2021.

Earnings Per Share (EPS) Behavior

EPS increased sharply from 1.71 USD in August 2020 to approximately 3.9 USD by November 2021, indicating a period of solid earnings growth. The EPS then remained relatively stable, fluctuating slightly around the mid-3 USD range until early 2025. Notably, there is a dramatic dip to 0.03 USD in May 2025, followed by a rebound to 1.96 USD in August 2025. This abrupt anomaly suggests a significant earnings event or irregularity during this period.

Price-to-Earnings (P/E) Ratio Analysis

The P/E ratio declined steadily from a high of 78.79 in November 2020 to a more moderate range of approximately 18–33 between 2022 and early 2024, reflecting a reduction in valuation multiples relative to earnings growth and share price movement. A pronounced spike occurs in May 2025, with the P/E ratio soaring to an extremely high level of 2227.69, coinciding with the EPS collapse noted earlier, indicating a distortion likely caused by near-zero earnings. This ratio then normalizes to 37.89 by August 2025, aligning with the partial earnings recovery.

Overall Observations

The data reveals an initial period of growth in both share price and earnings until late 2021, followed by a general downward trend in share price despite relatively stable earnings through early 2025. The sudden earnings collapse and P/E spike in mid-2025 mark an exceptional event impacting valuation metrics significantly. The subsequent recovery in earnings and share price suggests a potential resolution or stabilization after this disruption. The volatility in market valuation ratios and share price points to investor sensitivity to earnings fluctuations and possible external factors affecting the company’s financial performance during this interval.

The share price exhibited considerable volatility over the periods analyzed. Initially, there was an upward trend from around 130 US dollars to a peak surpassing 160 US dollars. However, following this peak, a pronounced decline occurred, with the share price dropping considerably below 100 US dollars, and at times declining to near 55 US dollars. In the final periods, some modest recovery was observed, with the share price slightly increasing to above 70 US dollars.

The operating profit per share demonstrated a general upward movement during the initial periods, rising from approximately 2.13 US dollars to over 4.5 US dollars. This level of profit per share remained relatively stable with minor fluctuations hovering around the range of 3.7 to 4.6 US dollars for an extended period. In the last periods, there was a notable sharp decline to almost negligible values, followed by a partial recovery.

The price-to-operating profit (P/OP) ratio started at a high level near 61 and progressively decreased over time, indicating an improving valuation relative to operating profit per share. This ratio dropped steadily to values in the range of approximately 16 to 29, reflecting either increases in operating profit per share, decreases in share price, or a combination of both. An exception to this trend occurred during the last periods where the ratio spiked dramatically to over 1900, which appears anomalous and likely influenced by the sharp fall in operating profit per share noted earlier. Subsequently, the ratio returned to a more moderate value around 32.

Share Price

Initial growth phase followed by a significant decline and minor recovery in later periods.

Operating Profit per Share

General increase during early and middle periods, stable plateau, then severe drop and mild rebound.

Price to Operating Profit Ratio (P/OP)

Consistent decrease reflecting improved earnings or lower valuations, with a notable irregular spike aligned with the sudden profit drop.

Overall, the financial metrics suggest a period of growth and stability for operating profit per share accompanied by fluctuating market confidence as reflected in the share price. The late-stage instability in profitability and valuation ratios points to a potential short-term issue affecting earnings, warranting further investigation into corresponding events or market conditions during those periods.

Share Price Trend

The share price exhibited a peak around May to November 2021, reaching as high as 161.04 USD. Subsequently, a downward trajectory became evident, particularly from early 2022 through mid-2025, with the lowest point registered at 55.58 USD in February 2025. Minor recoveries appeared intermittently after the trough, but the overall trend remained declining.

Sales Per Share Dynamics

Sales per share demonstrated a general upward progression from August 2020 reaching a plateau near the 34 USD mark around mid-2024. Starting from a base of 23.78 USD, it rose steadily to approximately 34.26 USD by May 2024, indicating growth in sales efficiency or volume relative to shares outstanding. Some fluctuations were observed close to the latest periods, with a notable dip to 0.47 USD in August 2025, which may indicate data inconsistency or an exceptional event affecting reported sales.

Price to Sales (P/S) Ratio Assessment

The P/S ratio began high at 5.45 in August 2020, fluctuated moderately through early 2022, then underwent a marked decline, reaching levels near 1.72 by February 2025. This decline aligns with the falling share price despite relatively stable sales per share, indicating a reduced market valuation relative to sales. Anomalies are noted with a striking spike to 154.85 in August 2025, suggesting the presence of an abnormal value or reporting irregularity.

Overall Insights

The data suggest a market valuation correction over the observed periods, with share price diminishing substantially while sales per share remained relatively stable or increased slightly. This divergence results in a decreasing P/S ratio, signaling that the market may be pricing the shares lower despite sustained sales performance, possibly reflecting broader concerns or shifts in investor sentiment. Occasional data irregularities in the final periods call for cautious interpretation or further verification.

The analysis of the quarterly financial data indicates notable fluctuations and trends in the share price, book value per share (BVPS), and price-to-book value (P/BV) ratio over the observed periods.

Share Price

The share price demonstrates considerable volatility throughout the timeline. Initially, the price shows an upward trajectory from $129.71 to a peak of $161.04 within about a year. Following this peak, a general downward trend is observed, with the share price declining steadily and reaching a low point of $55.58. In the more recent quarters, the share price exhibits slight recovery but remains substantially lower than the earlier highs. This pattern reflects periods of growth followed by a significant market correction or investor sentiment shift.

Book Value per Share (BVPS)

The book value per share shows a generally upward trend from $5.88 to over $10.11, indicating consistent growth in the company's net asset value per share. This growth appears steady with minor fluctuations, maintaining values around $9.00 to $10.00 during the later periods. There is a notable drop to $0.13 in one quarter which is likely an anomaly or data irregularity, as the surrounding values return to prior norms. Overall, the increasing BVPS suggests strengthening equity backing the shares over time.

Price-to-Book Value Ratio (P/BV)

The P/BV ratio declines significantly from an initial high of 22.08 to a low around 5.86 in the later period, indicating that the market valuation relative to the book value has decreased markedly. This trend aligns with the falling share price juxtaposed with the rising or stable book value. A notable outlier occurs with a very high ratio of 542.72 in one quarter, suggesting potential data inconsistency. Excluding that outlier, the ratio indicates that investor valuation of the company’s equity has become more conservative over time.

In summary, the financial indicators reflect a period of early market optimism followed by a correction phase. The sustained increase in book value per share points to growing intrinsic value, while the declining share price and P/BV ratio suggest a market reassessment or external factors affecting investor confidence. The disparity between the market value trends and book value growth warrants further investigation into operational performance, market conditions, or other influences impacting the share price.