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Nike (NYSE:NKE) GF Value Rank

: 9 (As of Today)
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Nike has the GF Value Rank of 9.

The GF Value Rank is determined by the price-to-GF-Value (P/GF Value) ratio, a proprietary metric calculated based on historical multiples along with an adjustment factor based on a company's past returns and growth and future estimates of the business' performance.

GuruFocus found that for valuation, we cannot simply give stocks a better GF Value rank simply because they have a lower P/GF Value ratio. Backtesting shows that over the long term, the two worst-performing groups are the most expensive group (with the highest P/GF Value ratio) and the least expensive group (with the lowest P/GF Value ratio).

We can understand why the most expensive group underperforms. We were initially puzzled by the underperformance of the least expensive group, but we realized there is a reason why some stocks are super cheap. If they look too undervalued, it is often because the businesses behind them are poor quality. The market realized this and gave them low valuations. In a way, the market is efficient.

After multiple backtesting analyses, we granted the stocks in third-cheapest percentile the highest GF Value rank, as they have performed the best over a full market cycle. Stock performance is actually not as sensitive to valuation as it is to growth and profitability. On average, the companies in the 20%-50% valuation groups have similar performances. Therefore, we should avoid the most expensive and the least expensive stocks. We can be more tolerant of valuation.

Please click GF Score to see more details on the GF Score's 5 Key Aspects of Analysis.


Competitive Comparison

For the Footwear & Accessories subindustry, Nike's GF Value Rank, along with its competitors' market caps and GF Value Rank 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 GF Value Rank Distribution

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

* The bar in red indicates where Nike's GF Value Rank falls into.



Nike GF Value Rank Related Terms

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


Nike (NYSE:NKE) Business Description

Address
One Bowerman Drive, Beaverton, OR, USA, 97005-6453
Nike is the largest athletic footwear and apparel brand in the world. Key categories include basketball, running, and football (soccer). Footwear generates about two thirds of its sales. Its brands include Nike, Jordan, and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores, and third-party retailers. The firm also operates e-commerce platforms in more than 40 countries. Nearly all its production is outsourced to contract manufacturers in more than 30 countries. Nike was founded in 1964 and is based in Beaverton, Oregon.
Executives
Mark G Parker officer: President ONE BOWERMAN DR, BEAVERTON OR 97005
Robert Holmes Swan director C/O EBAY INC., 2025 HAMILTON AVENUE, SAN JOSE CA 95125
Monique S. Matheson officer: EVP: HR ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Johanna Nielsen officer: VP: CORP CONTROLLER ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Matthew Friend officer: EVP: CFO ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Craig A. Williams officer: PRES: GEOGRAPHIES & MRKTPLACE 1680 CAPITAL ONE DR., MCLEAN VA 22102
Maria Henry director C/O THE HILLSHIRE BRANDS COMPANY, 3500 LACEY ROAD, DOWNERS GROVE IL 60515
Peter B. Henry director C/O NEW YORK UNIVERSITY/KAUFMAN MGT CNT, 44 WEST 4TH STREET, SUITE 11-160, NEW YORK CITY NY 10012
Monica Gil director ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Andrew Campion officer: EVP: CFO, other: EVP: CFO ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Rogers John W Jr director ARIEL CAPITAL MANAGEMENT, INC., 200 EAST RANDOLPH DRIVE, SUITE 2900, CHICAGO IL 60601
Ann M Miller officer: EVP & General Counsel ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Hilary K Krane officer: VP General Counsel ONE BOWERMAN DRIVE, BEAVERTON OR 97005
Heidi O'neill officer: PRES: CONSUMER AND MKTPLC C/O SKULLCANDY, INC., 1441 WEST UTE BOULEVARD, SUITE 250, PARK CITY UT 84098
Elizabeth J Comstock director GENERAL ELECTRIC COMPANY, 41 FARNSWORTH STREET, BOSTON MA 02210