Nike Stock Valuation

NKE -  USA Stock  

USD 106.44  2.93  2.68%

What is the value of Nike today? Calculating the true value of any business is not as easy as it may seem. While the market cap of a public entity, such as Nike, is its stock price multiplied by the total number of shares outstanding, calculating Nike's enterprise value requires a different approach. It uses Nike's balance sheet items such as long-term debt, the book value of the preferred stock, minority interest, and other important financials.
Nike Inc secures a last-minute Real Value of $135.76 per share. The latest price of the firm is $106.44. At this time, the firm appears to be undervalued. Our model forecasts the value of Nike Inc from analyzing the firm fundamentals such as Return On Equity of 48.26 %, profit margin of 13.32 %, and Current Valuation of 219.29 B as well as examining its technical indicators and Probability Of Bankruptcy. In general, we recommend purchasing undervalued stocks and exiting overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
  
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Nike Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Nike's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Undervalued
Today 106.44
Share
Please note that Nike's price fluctuation is very steady at this time. Calculation of the real value of Nike Inc is based on 3 months time horizon. Increasing Nike's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Nike Inc is useful when determining the fair value of the Nike stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Nike. Since Nike is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Nike Stock. However, Nike's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value.
135.76
Real Value
138.48
Upside
Estimating the potential upside or downside of Nike Inc helps investors to forecast how Nike stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Nike more accurately as focusing exclusively on Nike's fundamentals will not take into account other important factors:
Earnings
Estimates (13)
LowProjected EPSHigh
3.493.693.90
Details
Hype
Prediction
LowEstimated ValueHigh
104.46107.18109.90
Details
22 Analysts
Consensus
LowTarget PriceHigh
140.00184.65202.00
Details

Nike Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Nike's current stock value. Our valuation model uses many indicators to compare Nike value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Nike competition to find correlations between indicators driving Nike's intrinsic value. More Info.
Nike Inc is considered to be number one stock in five year return category among related companies. It is considered to be number one stock in price to sales category among related companies fabricating about  3.94  of Price to Sales per Five Year Return. . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nike by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nike's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Nike's earnings, one of the primary drivers of an investment's value.
Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Nike's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Nike and how it compares across the competition.

About Nike Valuation

The equity valuation mechanism determines the current worth of Nike Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Nike Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Nike Inc based exclusively on its fundamental and basic technical indicators. By analyzing Nike's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Nike's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Nike. We calculate exposure to Nike's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Nike's related companies.
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon. Nike operates under Footwear Accessories classification in the United States and is traded on New York Stock Exchange. It employs 73300 people.
Nike's stock price is the clearest measure of market expectations about its performance. Without stock valuation, investors cannot independently discern whether Nike's value is low or high relative to the company's performance and growth projections. Determining the market value of Nike can be done in different ways, such as multiplying its stock price by its outstanding shares.
A single share of Nike represents a small ownership stake in the entity. As a stockholder of Nike, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.

Nike Dividends Analysis For Valuation

There are various types of dividends Nike can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Nike shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Nike Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Nike pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Nike by the value of the dividends paid out.

Nike Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Nike does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio2.13
Earnings Quarterly Growth6.90%
Revenue Growth1.00%
Payout Ratio29.66%
Enterprise Value To Ebitda27.47
Earnings Growth6.40%
Enterprise Value To Revenue4.74
Additionally, see Stocks Correlation. Note that the Nike Inc information on this page should be used as a complementary analysis to other Nike's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

Complementary Tools for Nike Stock analysis

When running Nike Inc price analysis, check to measure Nike's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Nike is operating at the current time. Most of Nike's value examination focuses on studying past and present price action to predict the probability of Nike's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Nike's price. Additionally, you may evaluate how the addition of Nike to your portfolios can decrease your overall portfolio volatility.
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Is Nike's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Nike. If investors know Nike will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Nike listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Nike Inc is measured differently than its book value, which is the value of Nike that is recorded on the company's balance sheet. Investors also form their own opinion of Nike's value that differs from its market value or its book value, called intrinsic value, which is Nike's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Nike's market value can be influenced by many factors that don't directly affect Nike's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Nike's value and its price as these two are different measures arrived at by different means. Investors typically determine Nike value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nike's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.