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Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
NikeNKE -1.75%63 5-Year Yield-on-Cost % is 5.94 as of Jul. 22, 2026, which is 239% above its 10-year median of 1.75. GuruFocus rates NKE with a GF Score™ of 63/100 and a GF Value™ of $73.18 (Significantly Undervalued). The stock has 6 warning signs investors should review. Among 533 Manufacturing - Apparel & Accessories companies, Nike ranks better than 67.35% on this metric.
Nike's yield on cost for the quarter that ended in May. 2026 was 5.94.
The historical rank and industry rank for Nike's 5-Year Yield-on-Cost % or its related term are showing as below:
NKE'
s 5-Year Yield-on-Cost % Range Over the Past 10 Years
Min: 0.95 Med: 1.75 Max: 6.15
Current: 5.94
During the past 13 years, Nike's highest Yield on Cost was 6.15. The lowest was 0.95. And the median was 1.75.
NKE's 5-Year Yield-on-Cost % is ranked better than 67.35% of 533
companies
in the Manufacturing - Apparel & Accessories industry
Industry Median: 3.32
vs NKE: 5.94
Of course the risk here is that the company may not raise its dividends as it did before. The key is to select the companies that can consistently raise its dividends. Usually companies with long history of raising dividends tend to do so.
Nike 5-Year Yield-on-Cost % Related Terms
NKE vs DECK, ONON, BIRK: 5-Year Yield-on-Cost % Comparison
For the Footwear & Accessories subindustry, Nike's 5-Year Yield-on-Cost %, along with its competitors' market caps and 5-Year Yield-on-Cost % 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 5-Year Yield-on-Cost % vs Manufacturing - Apparel & Accessories Industry
For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Nike's 5-Year Yield-on-Cost % distribution charts can be found below:
* The bar in red indicates where Nike's 5-Year Yield-on-Cost % falls into.
Dividend Yield % and dividend growth of a stock is an important factor for income investors. But if company A raises its dividend constantly faster than company B, company A's future dividend yield might be much higher than Company B's even if their yields are the same now and their stock prices do not change.
Yield on Cost assumes that you buy and the stock today, and hold it for 5 years. If the company raises it dividends at the same rate as it did over the past 5 years, the dividends investors receive annually in 5 years relative to the stock price today.
Nike (NKE) has a 5-Year Yield-on-Cost % of 5.94 as of Jul. 22, 2026. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Nike and its competitors. This is 239% above median its historical median of 1.75. Over the past decade, Nike's 5-Year Yield-on-Cost % has ranged from 0.95 to 6.15. According to the industry distribution chart, Nike ranks #174 out of 533 companies in the Manufacturing - Apparel & Accessories industry, placing it in the top 32.6%.
Is Nike's 5-Year Yield-on-Cost % too high?
Nike's current 5-Year Yield-on-Cost % of 5.94 is 239% above median its 10-year median of 1.75. Over the past 10 years, this metric has ranged from a low of 0.95 to a high of 6.15. The Manufacturing - Apparel & Accessories industry median 5-Year Yield-on-Cost % is 3.32. Nike's value of 5.94 is 78.9% above this industry median. Based on the distribution chart, Nike ranks #174 out of 533 companies in the Manufacturing - Apparel & Accessories industry, which is above the industry midpoint. Overall, Nike has a GF Score™ of 63/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nike's 5-Year Yield-on-Cost % compare to DECK and ONON?
According to the Manufacturing - Apparel & Accessories industry distribution chart, Nike ranks #174 out of 533 companies for 5-Year Yield-on-Cost %. This puts Nike in the upper half of its industry. The industry median 5-Year Yield-on-Cost % is 3.32. Nike's value of 5.94 is 78.9% above this benchmark. Historically, Nike's own 5-Year Yield-on-Cost % has ranged from 0.95 to 6.15 over the past decade. While the company's 10-year median is 1.75 vs. the industry median of 3.32, Nike has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year Yield-on-Cost % for a Manufacturing - Apparel & Accessories company?
The median 5-Year Yield-on-Cost % among Manufacturing - Apparel & Accessories companies is 3.32, based on 533 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year Yield-on-Cost % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year Yield-on-Cost % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nike's current 5-Year Yield-on-Cost % of 5.94 is 78.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 5-Year Yield-on-Cost % mean?
A high 5-Year Yield-on-Cost % can signal that a stock is expensive relative to its fundamentals. 5-Year Yield on Cost measures the expected yield based on a company's current yield and 5-year dividend growth. View historical data on Nike and its competitors. For the Manufacturing - Apparel & Accessories industry, the median 5-Year Yield-on-Cost % is 3.32 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nike's current 5-Year Yield-on-Cost % is 5.94, which is 239% above median its own 10-year median of 1.75. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nike stock overvalued right now?
Based on GuruFocus' analysis, Nike (NKE) is currently considered Significantly Undervalued. The stock's GF Value™ is $73.18, compared to a current price of $42.21 — trading 42.3% below its estimated fair value. The current 5-Year Yield-on-Cost % is 5.94, which is 239% above median its 10-year median of 1.75 and 78.9% above the Manufacturing - Apparel & Accessories industry median of 3.32. Nike's overall GF Score™ is 63/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year Yield-on-Cost % calculated?
5-Year Yield-on-Cost % is calculated from a company's financial statements. For Nike (NKE), the current 5-Year Yield-on-Cost % is 5.94 as of Jul. 22, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nike (NKE) Overvalued in 2026?
Based on GuruFocus' analysis, Nike stock appears to be undervalued.
The current stock price of $42.21 is trading 42.3% below its estimated GF Value™ of $73.18.
GuruFocus considers Nike to be Significantly Undervalued.
Key valuation signals for NKE:
5-Year Yield-on-Cost %: 5.94 (239% above median its 10-year median of 1.75)
GF Value™: $73.18 vs. price of $42.21 (42.3% below fair value)
Industry Position: 78.9% above the Manufacturing - Apparel & Accessories median (#174 of 533)
No single metric tells the full story. See the NKE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nike is the largest athletic footwear and apparel brand in the world. Footwear generates about two-thirds of its sales. Key performance footwear categories include basketball, running, and football (soccer). Its brands include Nike, Jordan (premium athletic footwear and clothing), NikeSkims (women's athleisure), and Converse (casual footwear). Nike sells products worldwide through company-owned stores, franchised stores (including about 5,500 in China), 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.
63GF Score
Get the complete analysis for NKE
5-Year Yield-on-Cost % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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