Highly Regarded

Is Nike Inc. (NKE) Stock Undervalued or Overvalued?

Trailing-twelve-month multiples vs Consumer Discretionary sector peers in our coverage

88% Discount TTM fundamentals · sector averages from covered peers

NKE trades at 25.5× TTM earnings — a 88% discount to its Consumer Discretionary sector average of 211.3× in our coverage.

The Numbers

P/E (TTM)

25.5×

Sector avg: 211.3×

P/S (TTM)

1.4×

Sector avg: 10.1×

Market Cap

$64.13B

EPS (TTM): $1.70

Revenue (TTM)

$46.51B

Net income: $2.52B

Consumer Discretionary Peer Comparison

How NKE's multiples stack up against sector peers we cover. Click any peer for its own valuation breakdown.

Stock Price P/E (TTM)
NKE This page $43.32 25.5×
AMZN $244.20 34.1×
TSLA $419.67 388.6×

Is the Discount Justified?

July 6, 2026

Nike's P/E multiple of 25.5x, a notable discount compared to the Consumer Discretionary sector average of 148.5x, can be attributed to several recent performance pressures. The company's full-year fiscal 2026 revenues were flat on a reported basis and declined 2% currency-neutral, with fourth-quarter revenues also showing a decrease. While fourth-quarter net income saw a significant increase, this was largely due to a one-time benefit from tariff recoveries, masking underlying sales challenges. Declines in Nike Direct and digital revenues, alongside a substantial drop in Greater China revenue, indicate a slower-than-anticipated sales recovery. These factors, coupled with increased competition and concerns about innovation, likely contribute to the market's more cautious valuation.

Sources

Frequently Asked Questions

Is NKE overvalued or undervalued?
On trailing-twelve-month earnings, NKE trades at 25.5x versus a Consumer Discretionary sector average of 211.3x in our coverage — a 87.9% discount. Whether that's justified depends on growth, margins, and risk; see the context above.
What does the P/E ratio tell you?
Price-to-earnings compares a company's share price with its per-share profits. A higher multiple means investors pay more per dollar of earnings — often for faster expected growth — while a lower one can signal slower growth or higher perceived risk.
Why compare against the sector average?
Valuation multiples vary structurally between industries — software typically trades richer than banks or energy. Comparing NKE with its own Consumer Discretionary peers is more informative than comparing against the whole market.
Is a cheap stock automatically a good buy?
No. A discount can be justified by weak growth or elevated risk (a "value trap"), and a premium can be earned by quality and consistency. Valuation is one input — pair it with the fundamentals and the AI context on this page.

Methodology

Multiples are computed from trailing-twelve-month fundamentals (from company filings) and the latest share price: P/E is price ÷ diluted EPS, and P/S is market cap ÷ revenue. Sector averages use the Consumer Discretionary names in our 50-stock coverage with positive earnings — a deliberately like-for-like, if imperfect, benchmark.

Stocks with negative trailing earnings are compared on price-to-sales instead. Multiples update with prices and fundamentals; AI context refreshes weekly.

Not Financial Advice

This page is for education and information only. Indicators are mechanical calculations, AI commentary can contain errors, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a qualified financial advisor. See our full disclaimer.

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Same question, Consumer Discretionary peers

AMZN TSLA HD