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 21.8× TTM earnings — a 88% discount to its Consumer Discretionary sector average of 181.3× in our coverage.

The Numbers

P/E (TTM)

21.8×

Sector avg: 181.3×

P/S (TTM)

1.2×

Sector avg: 8.9×

Market Cap

$54.98B

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 $37.14 21.8×
AMZN $249.94 34.9×
TSLA $353.86 327.6×

Is the Discount Justified?

October 4, 2026

Nike's P/E of 19.9x, a substantial discount to the sector average of 132.7x, reflects recent operational challenges. The company reported flat full-year fiscal 2026 revenues and declines in Q4 fiscal 2026 and Q1 fiscal 2027, with a projected high single-digit revenue decline for fiscal year 2027. Weakness in Nike Direct sales and a significant 26% drop in revenue from the crucial Chinese market in Q1 fiscal 2027 have pressured results. While Nike is implementing a "Pace" restructuring plan to enhance productivity and modernize its supply chain, these efforts are in response to slowing demand and competitive pressures, which currently weigh on its valuation.

Sources

Frequently Asked Questions

Is NKE overvalued or undervalued?
On trailing-twelve-month earnings, NKE trades at 21.8x versus a Consumer Discretionary sector average of 181.3x 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

HD AMZN TSLA