Nike Inc. (NYSE:NKE)

The financial ratios exhibit several distinct trends over the observed periods, reflecting changing market perceptions and company performance dynamics.

Price to earnings (P/E) ratio

The P/E ratio shows an initial increase starting around May 2019, peaking significantly between August 2020 and February 2021, with values exceeding 75 at its highest point. After this peak, there is a gradual decline, stabilizing roughly between 25 and 35 in the latest periods. This pattern indicates a temporary surge in market valuation relative to earnings followed by a contraction toward more moderate levels, which may suggest cyclical earnings expectations or adjustments in investor sentiment.

Price to operating profit (P/OP) ratio

The P/OP ratio follows a pattern similar to the P/E ratio, rising from mid-2019 and reaching a peak in late 2020 and early 2021 with values above 60. Following this peak, the ratio trends downward through subsequent periods, settling between 16 and 30 in recent quarters. The correlation with the P/E ratio trend suggests that operating profit valuations underwent similar market reappraisals, reflecting either changing profitability or shifts in investor risk appetite.

Price to sales (P/S) ratio

The P/S ratio demonstrates a comparable but less volatile trend. From mid-2019, the ratio climbs, peaking around late 2020 to early 2021 at approximately 5.8. After this peak, the ratio generally declines, reaching lower levels near 1.7 to 3 in later periods. The decrease suggests the market adjusted its valuation of sales downward, potentially due to expectations of margin compression or slower sales growth.

Price to book value (P/BV) ratio

The P/BV ratio exhibits a different trajectory, showing a steady increase until reaching its highest levels around August to November 2020 with values exceeding 22. Following this peak, the ratio declines gradually across subsequent periods, dropping to values just below 6 by early 2025. The sharp decline over the long term indicates a substantial reduction in the market premium over book value, possibly driven by asset base growth, lower market confidence, or adjustments linked to balance sheet composition.

Overall, the data indicate a pronounced peak in market valuation ratios around late 2020 and early 2021 across earnings, operating profit, sales, and book value measures. This peak is followed by a consistent downward adjustment across all ratios, reflecting a recalibration of market expectations and valuations over the subsequent years. These trends may relate to wider market cycles, company-specific performance variations, or macroeconomic influences impacting investor behavior.

The share price of the company exhibits noticeable volatility over the observed periods, with evident fluctuations that suggest varying market sentiment and external factors affecting valuation. Initially, there was an upward trending pattern from August 2018 to November 2019, where the share price rose from approximately $80 to over $101. Subsequently, a decline followed in early 2020 reaching near $84, coinciding with the early impacts of the global pandemic environment. Thereafter, a strong recovery is visible, peaking around mid-2021 with prices surpassing $160. However, after this peak, the share price experienced a marked decline through 2022 and 2023, falling progressively to a low near $55 by early 2025. This suggests a period of market correction or negative external pressures impacting the stock value during the latter periods.

Earnings per share (EPS) data, available from early 2019, indicates a general trend of growth punctuated by some fluctuations. EPS rose steadily from approximately $2.57 in early 2019 to a peak of about $3.9 in late 2021. Following this peak, EPS stabilized with slight oscillations around $3.3 to $3.8 through to early 2025. The EPS progression demonstrates improving profitability overall despite some variations, which may reflect operational efficiencies or revenue growth partially tempered by cost factors or economic conditions.

The price-to-earnings (P/E) ratio reflects the market's valuation relative to earnings, showing substantial variation throughout the periods. Early data from 2019 indicates relatively stable P/E ratios around the mid-30s, which then surged sharply in mid-2020 to highs above 75, coinciding with a sharp earnings decrease and share price fluctuations. This elevated ratio signals increased market expectations or potential overvaluation during uncertain conditions. Following this spike, the P/E ratio declined steadily, moving into the low 20s by 2024 and early 2025, indicating a recalibration of market valuation to a more moderate level relative to earnings. The downward trend in P/E alongside the decrease in share price may signal tempered investor expectations or sector-wide valuation adjustments.

Overall, the data reveals a company that experienced strong growth and share price appreciation up to late 2021, followed by a sustained decrease in market valuation despite relatively stable earnings. The significant variations in P/E ratios highlight shifts in market sentiment and valuation methodologies over the examined period, suggesting a phase of volatility and recalibration post-2021.

The financial data over the analyzed periods reveals multiple notable trends and fluctuations in share price, operating profit per share, and the price-to-operating profit (P/OP) ratio.

Share Price

The share price exhibits considerable volatility across the entire timeframe. Beginning around 80.12 US$ in August 2018, it experiences moderate fluctuations through early 2020, reaching a peak near 101.78 US$ in November 2019. Subsequently, it dips during early 2020, potentially influenced by external factors, before climbing sharply to a high of approximately 161.04 US$ in November 2021.

Following this peak, the share price undergoes a general downward trend with minor rebounds. By May 2024, it declines to a low point around 55.58 US$, signaling decreased market valuation relative to prior highs.

Operating Profit per Share

Operating profit per share data begins in May 2019. Initial values show a steady increase from 3.05 US$ to a peak of roughly 4.61 US$ in November 2021, indicating improved operational performance during this period.

From late 2021 onward, the metric exhibits a mild decline, tapering to about 3.34 US$ by February 2025. Despite the reduction, operating profit per share remains relatively stable compared to earlier periods, suggesting controlled operational efficiency even as market conditions may vary.

Price to Operating Profit (P/OP) Ratio

The P/OP ratio shows significant variability, with initial values around 28 to 30 in mid-2019 and spiking sharply to above 60 by late 2020. This increase implies an elevated market valuation relative to operating profit during that time, potentially reflecting high investor optimism or market speculation.

From November 2020 onward, the ratio steadily declines, falling to below 17 by May 2024 and maintaining similar lower-level values through early 2025. This trend suggests a market correction or revaluation, where share prices decrease relative to operating profit, possibly indicating reduced investor confidence or a normalization after prior peaks.

Collectively, the data points to a cycle of growth and contraction in market valuation with operating profitability peaking and then slightly receding. The divergence between share price and operating profit per share during late 2020 to 2021 highlights periods of elevated market valuation beyond underlying profitability, followed by a market adjustment aligning valuation more closely with operational results.

The analyzed financial data reveals several notable trends and patterns over the observed period. The share price, sales per share, and price-to-sales (P/S) ratio exhibit fluctuations indicative of market dynamics, company performance, and valuation changes.

Share Price

The share price demonstrates considerable volatility across the quarters. It starts around $80.12 in August 2018 and experiences fluctuations with peaks and troughs. A prominent upward trend occurs from May 2020 through November 2021, where the price reaches highs above $150, peaking at $161.04 in November 2021. Following this peak, there is a general downward trend, with the share price decreasing significantly to $55.58 by February 2025. This decline suggests either market corrections or challenges impacting investor sentiment during the latter period.

Sales Per Share

Sales per share data begin from February 2019, showing steady incremental growth over time. Starting at $24.96, the sales per share rise consistently, reaching approximately $34.26 by August 2024, before slightly declining to $33.11 and $32.4 in the final recorded periods. This gradual increase points to positive revenue growth and potentially effective operational performance, with minimal volatility compared to share price movements.

Price-to-Sales (P/S) Ratio

The P/S ratio shows fluctuating valuations relative to sales per share. Early in the observed period, the P/S ratio fluctuates from around 3.47 to a high of approximately 5.82 by November 2020. Following these peaks, the ratio declines steadily, dropping to as low as 1.72 by February 2025. This decreasing trend in the P/S ratio in the latter period reflects a potential reduction in market valuation relative to sales, implying either a more conservative market outlook or an adjustment after previous overvaluation.

Overall, the data reveals a phase of strong market enthusiasm and rising share prices until late 2021, coupled with consistent growth in sales per share. However, the subsequent period witnesses share price corrections and a falling P/S ratio, despite relatively stable sales figures. This divergence suggests that market valuation contracted at a faster pace than sales fundamentals, possibly signaling investor caution or external factors influencing market perceptions.

Share Price Trend

The share price exhibited a fluctuating pattern over the observed quarters. Initially, it rose steadily from approximately $80.12 in August 2018 to a peak near $161.04 in November 2021. Following this peak, a significant decline is apparent, with the share price falling to around $55.58 by February 2025. This indicates substantial volatility and a downward correction in market valuation during the most recent periods.

Book Value Per Share (BVPS) Trend

The book value per share demonstrated a generally upward trend over the period, increasing from $5.66 in August 2018 to around $9.49 by February 2025. This steady increase suggests consistent growth in the company's net asset value on a per-share basis, reflecting improvements in the balance sheet or retained earnings accumulation across these years.

Price to Book Value (P/BV) Ratio Trend

The P/BV ratio followed a volatile but overall decreasing trend. Early in the period, this ratio was relatively high, peaking around 22.08 in August 2020, indicating that the market valued the shares at a substantial premium over their book value. Post this peak, the ratio declined steadily to about 5.86 by February 2025. This decrease suggests a reduction in market optimism or revaluation of the company's stock relative to its book value, likely driven by the falling share price despite the increasing BVPS.