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Nike PE Ratio

: 38.79 (As of Today)
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The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). As of today (2022-01-18), Nike's share price is $148.18. Nike's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Nov. 2021 was $3.82. Therefore, Nike's PE Ratio for today is 38.79.


The historical rank and industry rank for Nike's PE Ratio or its related term are showing as below:

NYSE:NKE' s PE Ratio Range Over the Past 10 Years
Min: 17.01   Med: 27.32   Max: 83.63
Current: 38.79

17.01
83.63

During the past 13 years, the highest PE Ratio of Nike was 83.63. The lowest was 17.01. And the median was 27.32.


NYSE:NKE's PE Ratio is ranked lower than
79% of the 725 Companies
in the Manufacturing - Apparel & Accessories industry.

( Industry Median: 15.72 vs. NYSE:NKE: 38.79 )

Nike's Earnings per Share (Diluted) for the three months ended in Nov. 2021 was $0.83. Its Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Nov. 2021 was $3.82.

As of today (2022-01-18), Nike's share price is $148.18. Nike's EPS without NRI for the trailing twelve months (TTM) ended in Nov. 2021 was $3.82. Therefore, Nike's PE Ratio without NRI for today is 38.79.

During the past 13 years, Nike's highest PE Ratio without NRI was 83.63. The lowest was 16.72. And the median was 27.32.

Nike's EPS without NRI for the three months ended in Nov. 2021 was $0.83. Its EPS without NRI for the trailing twelve months (TTM) ended in Nov. 2021 was $3.82.

During the past 12 months, Nike's average EPS without NRI Growth Rate was 118.30% per year. During the past 3 years, the average EPS without NRI Growth Rate was 44.90% per year. During the past 5 years, the average EPS without NRI Growth Rate was 5.60% per year. During the past 10 years, the average EPS without NRI Growth Rate was 8.10% per year.

During the past 13 years, Nike's highest 3-Year average EPS without NRI Growth Rate was 135.80% per year. The lowest was -100.00% per year. And the median was 16.90% per year.

Nike's EPS (Basic) for the three months ended in Nov. 2021 was $0.84. Its EPS (Basic) for the trailing twelve months (TTM) ended in Nov. 2021 was $3.90.


Nike PE Ratio Historical Data

The historical data trend for Nike's PE Ratio can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Nike Annual Data
Trend May12 May13 May14 May15 May16 May17 May18 May19 May20 May21
PE Ratio
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.11 61.37 30.98 61.61 38.33

Nike Quarterly Data
Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21
PE Ratio Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 76.97 63.58 38.33 43.70 44.30

Competitive Comparison

For the Footwear & Accessories subindustry, Nike's PE Ratio, along with its competitors' market caps and PE Ratio data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Nike PE Ratio Distribution

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nike's PE Ratio distribution charts can be found below:

* The bar in red indicates where Nike's PE Ratio falls into.



Nike PE Ratio Calculation

The PE Ratio, or Price-to-Earnings ratio, or P/E Ratio, is a financial ratio used to compare a company's market price to its Earnings per Share (Diluted). It is the most widely used ratio in the valuation of stocks.

Nike's PE Ratio for today is calculated as

PE Ratio=Share Price/Earnings per Share (Diluted) (TTM)
=148.18/3.820
=38.79

Nike's Share Price of today is $148.18.
Nike's Earnings per Share (Diluted) for the trailing twelve months (TTM) ended in Nov. 2021 adds up the quarterly data reported by the company within the most recent 12 months, which was $3.82.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

It can also be calculated from the numbers for the whole company:


There are at least three kinds of PE Ratios used by different investors. They are Trailing Twelve Month PE Ratio or PE Ratio (TTM), Forward PE Ratio, or PE Ratio without NRI. A new PE Ratio based on inflation-adjusted normalized PE Ratio is called Shiller PE Ratio, after Yale professor Robert Shiller.

In the calculation of PE Ratio, the earnings per share used are the earnings per share over the past 12 months. For Forward PE Ratio, the earnings are the expected earnings for the next twelve months. In the case of PE Ratio without NRI, the reported earnings less the non-recurring items are used.

For Shiller PE Ratio, the earnings of the past 10 years are inflation-adjusted and averaged. Since it looks at the average over the last 10 years, Shiller PE Ratio is also called PE10.


Nike  (NYSE:NKE) PE Ratio Explanation

The PE Ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. For example, if a company earns $2 a share per year, and the stock is traded at $30, the PE Ratio is 15. Therefore it takes 15 years for the company to earn back the $30 you paid for its stock, assuming the earnings stays constant over the next 15 years.

In real business, earnings never stay constant. If a company can grow its earnings, it takes fewer years for the company to earn back the price you pay for the stock. If a company's earnings decline it takes more years. As a shareholder, you want the company to earn back the price you pay as soon as possible. Therefore, lower P/E stocks are more attractive than higher P/E stocks so long as the PE Ratio is positive. Also for stocks with the same PE Ratio, the one with faster growth business is more attractive.

If a company loses money, the PE Ratio becomes meaningless.

To compare stocks with different growth rates, Peter Lynch invented a ratio called PEG Ratio. PEG Ratio is defined as the PE Ratio divided by the growth ratio. He thinks a company with a PE Ratio equal to its growth rate is fairly valued. Still he said he would rather buy a company growing 20% a year with a PE Ratio of 20, instead of a company growing 10% a year with a PE Ratio of 10.

Because the PE Ratio measures how long it takes to earn back the price you pay, the PE Ratio can be applied to the stocks across different industries. That is why it is the one of the most important and widely used indicators for the valuation of stocks.

Similar to the PE Ratio without NRI or PS Ratio or Price-to-Operating-Cash-Flow or Price-to-Free-Cash-Flow , the PE Ratio measures the valuation based on the earning power of the company. This is where it is different from the PB Ratio , which measures the valuation based on the company's balance sheet.


Be Aware

Investors need to be aware that the PE Ratio can be misleading a lot of times, especially when the underlying business is cyclical and unpredictable. As Peter Lynch pointed out, cyclical businesses have higher profit margins at the peaks of the business cycles. Their earnings are high and PE Ratios are artificially low. It is usually a bad idea to buy a cyclical business when the PE Ratio is low. A better ratio to identify the time to buy a cyclical businesses is the PS Ratio .

PE Ratio can also be affected by non-recurring-items such as the sale of part of businesses. This may increase for the current year or quarter dramatically. But it cannot be repeated over and over. Therefore PE Ratio without NRI is a more accurate indication of valuation than PE Ratio.


Nike PE Ratio Related Terms

Thank you for viewing the detailed overview of Nike's PE Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.


Nike Business Description

Nike logo
Address
One Bowerman Drive, Beaverton, OR, USA, 97005-6453
Nike is the largest athletic footwear and apparel brand in the world. It designs, develops, and markets athletic apparel, footwear, equipment, and accessories in six major categories: running, basketball, soccer, training, sportswear, and Jordan. Footwear generates about two thirds of its sales. Nike's brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide and outsources its production to more than 300 factories in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
Executives
Krane Hilary K officer: EVP, CAO & General Counsel ONE BOWERMAN DRIVE BEAVERTON OR 97005
Parker Mark G director, officer: EXECUTIVE CHAIRMAN PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: PARKER MARK G a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Knight Philip H other: Chairman Emeritus ONE BOWERMAN DR BEAVERTON OR 97005-6453
Campion Andrew officer: CHIEF OPERATING OFFICER ONE BOWERMAN DRIVE BEAVERTON OR 97005
Comstock Elizabeth J director GENERAL ELECTRIC COMPANY 41 FARNSWORTH STREET BOSTON MA 02210
Matheson Monique S. officer: EVP: HR ONE BOWERMAN DRIVE BEAVERTON OR 97005
Knight Travis A director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Peluso Michelle A director 3150 SABRE DRIVE SOUTHLAKE TX 76092
Graf Alan B Jr director 1600 ROYAL ST JASPER IN 47549
Benko Cathleen A director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Duckett Thasunda director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Rogers John W Jr director ARIEL CAPITAL MANAGEMENT, INC. 200 EAST RANDOLPH DRIVE, SUITE 2900 CHICAGO IL 60601
Connors John G director NIKE INC. ONE BOWERMAN DRIVE BEAVERTON OR 97005
Henry Peter B. director C/O NEW YORK UNIVERSITY/KAUFMAN MGT CNT 44 WEST 4TH STREET, SUITE 11-160 NEW YORK CITY NY 10012
Cook Timothy D director C/O APPLE INC ONE INFINITE LOOP CUPERTINO CA 95014

Nike Headlines

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