Highly Regarded

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

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

87% Discount TTM fundamentals · sector averages from covered peers

NKE trades at 25.7× TTM earnings — a 87% discount to its Consumer Discretionary sector average of 193.5× in our coverage.

The Numbers

P/E (TTM)

25.7×

Sector avg: 193.5×

P/S (TTM)

1.4×

Sector avg: 9.4×

Market Cap

$64.78B

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 $43.76 25.7×
AMZN $247.26 34.5×
TSLA $380.82 352.6×

Is the Discount Justified?

July 12, 2026

Nike Inc.'s trailing twelve-month (TTM) P/E of 26.1x represents a substantial discount compared to its Consumer Discretionary sector average of 145.9x. This valuation reflects recent operational headwinds and a period of strategic transition. The company reported a challenging fiscal fourth quarter and full-year 2025, with revenues declining 12% and 10% respectively, and net income falling significantly. These declines were broad-based across geographies, impacting both Nike Direct and wholesale channels, with gross margins pressured by higher discounts and unfavorable channel mix. While Nike has been aggressively pursuing a direct-to-consumer (DTC) strategy to enhance margins and customer engagement, this pivot has introduced complexities and faced challenges in execution. The current discount in valuation likely reflects investor concerns regarding the pace of revenue recovery, the effectiveness of its strategic shifts in a competitive market, and broader macroeconomic pressures affecting consumer discretionary spending.

Sources

Frequently Asked Questions

Is NKE overvalued or undervalued?
On trailing-twelve-month earnings, NKE trades at 25.7x versus a Consumer Discretionary sector average of 193.5x in our coverage — a 86.7% 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.

Keep Digging on NKE

Nike Inc. Overview

Price, chart, analysis & financials

NKE: Overbought or Oversold?

Updated daily

NKE: Why Is It Moving?

Updated daily

NKE: Price Prediction

Updated daily

Same question, Consumer Discretionary peers

TSLA HD AMZN