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Nike Inc (NYSE:NKE)
Median P/S Value
$54.05 (As of Today)

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

Median P/S Value is calculated as trailing twelve months (TTM) revenue per share times 10-Year median P/S ratio. Nike Inc's revenue per share for the trailing twelve months (TTM) ended in May. 2014 was $30.71. Nike Inc's 10-Year median P/S ratio is 1.76. Therefore, the Median P/S Value for today is $54.05.

As of today, Nike Inc's share price is $78.55. Nike Inc's median P/S value is $54.05. Therefore, Nike Inc's Price to Median P/S Value Ratio for today is 1.45.

NKE' s 10-Year Price to Median P/S Value Range
Min: 0.67   Max: 1.42
Current: 1.45

0.67
1.42

During the past 13 years, the highest Price to Median P/S Value Ratio of Nike Inc was 1.42. The lowest was 0.67. And the median was 0.97.

NKE's Price to Median P/S Value is ranked higher than
52% of the 795 Companies
in the Global Footwear & Accessories industry.

( Industry Median: 1.10 vs. NKE: 1.45 )

Definition

Nike Inc's Median P/S Value for today is calculated as

Median P/S Value=Total Annual Sales / Shares Outstanding*10-Year Median P/S Ratio
=Revenue per Share (TTM)*10-Year Median P/S Ratio
=30.71*1.76
=54.05

10-Year Median P/S Ratio is 1.76.
Nike Inc's revenue per share for the trailing twelve months (TTM) ended in May. 2014 was 7.65 (Aug. 2013 ) + 7.06 (Nov. 2013 ) + 7.71 (Feb. 2014 ) + 8.29 (May. 2014 ) = $30.71.

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


Explanation

This valuation method assumes that the stock valuation will revert to its historical mean in terms of Price/Sales Ratio. The reason we use P/S Ratio instead of P/E Ratio or P/B Ratio is because Price/Sales Ratio is independent of profit margin, and can be applied to a broader range of situations.

It also assumes that over time the profit margin is constant. If a company increases its profit margin to a sustainable level, this value might under-estimate its value. If it has permanent declined profit margins, this may over-estimate the company’s value.

Nike Inc's Price to Median P/S Value Ratio for today is calculated as

Price to Median P/S Value=Share Price/Median P/S Value
=78.55/54.05
=1.45

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


Related Terms

P/E Ratio, P/B Ratio, P/S Ratio, Intrinsic Value (DCF Projected), Intrinsic Value (DCF), Intrinsic Value (DE), Graham Number, GAVA


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

May05May06May07May08May09May10May11May12May13May14
medpsvalue 22.4424.9628.0932.4534.4133.9036.4844.0548.6554.05

Nike Inc Quarterly Data

Feb12May12Aug12Nov12Feb13May13Aug13Nov13Feb14May14
medpsvalue 41.5544.0545.1346.1847.4848.6549.7650.7152.3254.05
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