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GuruFocus has detected 2 Warning Signs with Nike Inc \$NKE.
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Nike Inc (NYSE:NKE)
Book Value per Share
\$7.69 (As of Feb. 2017)

Nike Inc's book value per share for the quarter that ended in Feb. 2017 was \$7.69.

During the past 12 months, Nike Inc's average Book Value Per Share Growth Rate was 5.30% per year. During the past 3 years, the average Book Value Per Share Growth Rate was 5.60% per year. During the past 5 years, the average Book Value Per Share Growth Rate was 7.20% per year. During the past 10 years, the average Book Value Per Share Growth Rate was 9.00% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the book value growth rate using book value per share data.

During the past 13 years, the highest 3-Year average Book Value Per Share Growth Rate of Nike Inc was 35.40% per year. The lowest was 2.20% per year. And the median was 13.40% per year.

Nike Inc's current price is \$55.41. Its book value per share for the quarter that ended in Feb. 2017 was \$7.69. Hence, today's P/B Ratio of Nike Inc is 7.21.

During the past 13 years, the highest P/B Ratio of Nike Inc was 8.68. The lowest was 2.36. And the median was 4.34.

Good Sign:

Nike Inc stock PB Ratio (=7.21) is close to 2-year low of 6.71

Definition

Nike Inc's Book Value Per Share for the fiscal year that ended in May. 2016 is calculated as:

 Book Value Per Share = (Total Equity - Preferred Stock) / Shares Outstanding (EOP) = (12,258 - 0) / 1,682 = 7.29

Nike Inc's Book Value Per Share for the quarter that ended in Feb. 2017 is calculated as:

 Book Value Per Share = (Total Equity - Preferred Stock) / Shares Outstanding (EOP) = (12,722 - 0) / 1,654 = 7.69

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets less total liabilities of the company.

Book value may include intangible items which may come from the companys past acquisitions. Book value less intangibles is called Tangible Book.

Explanation

Usually a companys book value and Tangible Book Value per Share may not reflect its true value. The assets may be carried on the balance sheets at the original cost minus depreciation. This may underestimate the true economic values of the assets. It also may over-estimate their true economic value because the assets can become obsolete.

For financial companies such as banks and insurance companies, their assets may be reported in current market value of the assets owned. Book values of financial companies are more accurate indicator of the economic value of the company.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Nike Inc Annual Data

 May07 May08 May09 May10 May11 May12 May13 May14 May15 May16 Book Value Per Share 3.50 3.98 4.48 5.04 5.26 5.67 6.20 6.22 7.41 7.29

Nike Inc Quarterly Data

 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 Book Value Per Share 6.77 7.19 7.41 7.55 7.85 7.30 7.29 7.29 7.44 7.69
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