Switch to:
Nike Inc (NYSE:NKE)
Shiller P/E Ratio
45.50 (As of Today)

As of today, Nike Inc's current share price is $56.42. Nike Inc's E10 for the quarter that ended in Nov. 2015 was $1.24. Nike Inc's Shiller P/E Ratio for today is 45.50.

NKE' s Shiller P/E Ratio Range Over the Past 10 Years
Min: 18.5   Max: 54.17
Current: 45.63

18.5
54.17

During the past 13 years, Nike Inc's highest Shiller P/E Ratio was 54.17. The lowest was 18.50. And the median was 31.57.

NKE's Shiller P/E Ratio is ranked lower than
75% of the 193 Companies
in the Global Footwear & Accessories industry.

( Industry Median: 24.99 vs. NKE: 45.63 )

E10 is a concept invented by Prof. Robert Shiller, who uses E10 for his Shiller P/E calculation. E10 is the average of the inflation adjusted earnings of a company over the past 10 years.

Nike Inc's adjusted earnings per share data for the three months ended in Nov. 2015 was $0.450. Add all the adjusted EPS for the past 10 years together and divide 10 will get our E10, which is $1.24 for the trailing ten years ended in Nov. 2015.


Definition

For the Shiller P/E, the earnings of the past 10 years are inflation-adjusted and averaged. The result is used for P/E calculation. Since it looks at the average over the last 10 years, the Shiller P/E is also called PE10.

The Shiller P/E was first used by professor Robert Shiller to measure the valuation of the overall market. The same calculation is applied here to individual companies.

Nike Inc's Shiller P/E Ratio for today is calculated as

Shiller P/E Ratio=Share Price/E10
=56.42/1.24
=45.50

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nike Inc's E10 for the fiscal year that ended in May15 is calculated as:

For example, Nike Inc's adjusted earnings per share data for the three months ended in Nov. 2015 was:

Adj_EPS=Earnigns per Share/CPI of Nov. 2015 (Change)*Current CPI (Nov. 2015)
=0.45/237.336*237.336
=0.450

Current CPI (Nov. 2015) = 237.336.

Nike Inc Quarterly Data

201308201311201402201405201408201411201502201505201508201511
per share eps 0.4300.2950.3750.3900.5450.3700.4450.4900.6700.450
CPI 233.877233.069234.781237.900237.852236.151234.722237.805238.316237.336
Adj_EPS 0.4360.3000.3790.3890.5440.3720.4500.4890.6670.450
201102201105201108201111201202201205201208201211201302201305
per share eps 0.2700.3100.3400.2500.3000.2950.3050.2100.4750.360
CPI 221.309225.964226.545226.230227.663229.815230.379230.221232.166232.945
Adj_EPS 0.2900.3260.3560.2620.3130.3050.3140.2160.4860.367
200808200811200902200905200908200911201002201005201008201011
per share eps 0.2580.2000.1250.1750.2600.1900.2530.2630.2850.235
CPI 219.086212.425212.193213.856215.834216.330216.741218.178218.312218.803
Adj_EPS 0.2790.2230.1400.1940.2860.2080.2770.2860.3100.255
200602200605200608200611200702200705200708200711200802200805
per share eps 0.1550.1600.1850.1600.1700.2150.2800.1780.2300.245
CPI 198.700202.500203.900201.500203.499207.949207.917210.177211.693216.632
Adj_EPS 0.1850.1880.2150.1880.1980.2450.3200.2010.2580.268

Add all the adjusted EPS together and divide 10 will get our E10.


Explanation

Compared with the regular P/E ratio, which works poorly for cyclical businesses, the Shiller P/E smoothed out the fluctuations of profit margins during business cycles. Therefore it is more accurate in reflecting the valuation of the company.

If a company has consistent business performance, the Shiller P/E should give similar results to regular P/E.

Compared with the P/S ratio, the Shiller P/E makes the comparison between different industries more meaningful.


Be Aware

The Shiller P/E assumes that over the long term, businesses and profitability revert to their means. If a company’s business model does not work in the future compared with the past, the Shiller P/E and P/S ratio will give false valuations.


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Price-to-Free-Cash-Flow ratio, E10


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Nike Inc Annual Data

May06May07May08May09May10May11May12May13May14May15
ShillerPE 26.6933.2933.2125.4728.5428.6832.8532.5436.2543.17

Nike Inc Quarterly Data

Aug13Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15
ShillerPE 32.2239.8238.0336.2535.8244.8343.1343.1745.7953.51
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK