However, as the company gains critical mass in that particular area of the world, nike works to go in directly and eliminate the distributor level. The difference between pricetotangiblebook and pricetobook ratio is that book value other than intangibles are used in the calculation. Nike has turned down in the trend channel, approaching its mean reversal. Nike was founded in 1964 and is based in beaverton, oregon. Nike is engaged in design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Globally, if nike is in an emerging market, or a new market, it distributes its product through a third party. Nke is poor value based on its peg ratio 2x price to book ratio pb vs industry. Price to book pb ratio is used to relate a company book value to its current market price. Nike inc financial ratios nke usa footwear infront.
Tipranks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. Its book value per share for the quarter that ended in feb. Ps ratio an rationale for the ps ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as eps or book value. To get more information or amend your preferences, press the more information button or visit cookie settings at the bottom. About nike fundamental analysis the macroaxis fundamental analysis modules help investors analyze nike incs financials across various querterly and yearly statements, indicators and fundamental ratios. Its net cash position is the cherry on top of its superb eps growth. When the market is wrong about a stock, it gives savvy investors an opportunity. Looking back at the last five years, nikes debt equity peaked in february 2020 at 73. The book value per share is a little more complicated. Nike s book value per share for the quarter that ended in feb.
Market to book value ratio 20 1 00 000 1,500,000 2,000,0001,500,000 1. This table contains critical financial ratios such as pricetoearnings pe ratio, earningspershare eps, returnoninvestment roi and others based on nike incs latest financial reports. Indepth view of key statistics and finances for nike, inc. Quarter and despite tangible book value increase of 0. Historical price to book ratio values for nike nke over the last 10 years. Nikes debt equity for fiscal years ending may 2015 to 2019 averaged 27. Nike debtequity for the three months ending february 29, 2020 was 0. Cl b company facts, information and stock details by marketwatch. Social media and advertising cookies of third parties are used to offer you social media functionalities and personalized ads. The market to book ratio also called the price to book ratio, is a financial valuation metric used to evaluate a companys current market value relative to its book value. Nike inc s current price to book ratio has decreased due to shareprice contraction of 12. Book value is the accounting value of assets minus liabilities. Nike asks you to accept cookies for performance, social media and advertising purposes. Current and historical debt to equity ratio values for nike nke over the last 10 years.
Nike inc price to tangible book ratio ptb ratios, nke. The price to book ratio formula is calculated by dividing the market price per share by book value per share. The booktomarket ratio is used to find the value of a company by comparing the book value of a firm to its market value. We first subtract the total liabilities from the total assets. Jul 31, 2019 market to book financial ratio market value. Nke, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Nkes next quarterly dividend payment will be made to shareholders of record on wednesday, july 1. Nike debt to equity ratio 20062020 nke macrotrends. New york including stock price, stock chart, company news, key statistics, fundamentals and. A solvency ratio calculated as total assets divided by total shareholders equity. The market price per share is simply the current stock price that the company is being traded at on the open market. Nike sells products worldwide and outsources its production to more than 400 factories in more than 40 countries. It is important to understand the market to book value ratio when it is less than 1 and greater than 1.
Market to book ratio formula, calculation, example. Learn about nke with our data and independent analysis including price, star rating, valuation, dividends, and financials. Nike is a seller of athletic footwear and athletic apparel across the world. During the past years, the highest pb ratio of nike was 18. Price to book ratio market to book value pb formula m. Looking back at the last five years, nike s debt equity peaked in february 2020 at 73. Nike inc price to book ratio pb ratios, nke valuation. Thats higher than the average in its market, which is 17. Nike debtequity for the three months ending november 30, 2019 was 0. Normally, a companys share value will be greater than its book value because the share price takes into account investors estimate of the profitability of the company how well it uses its assets and includes best guesses of the future value of the company. All numbers are in millions except for per share data and ratio. Pbv ratio, the pbv ratio is interpreted as an indicator of market. Feb 26, 2020 nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach.
The current price to book ratio for nike as of may 08, 2020 is 15. See which 3 stocks are most likely to make moves following their insider activities. Nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach. Nike s debt equity for fiscal years ending may 2015 to 2019 averaged 27. This table contains critical financial ratios such as price to earnings pe ratio, earningspershare eps, returnoninvestment roi and others based on nike incs latest financial reports. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Nke has a dividend payout ratio of 30% and trailing annual dividend yield of 1.
Price to book value is a valuation ratio that is measured by stock price book value per share. Nike inc market multiple valuation nke usa footwear. The market value is the current stock price of all outstanding shares i. In the event that price reaches the mean reversal and the long term rsi starts to turn upwards, i will look for a long position, with target towards upper trend channel ath. Some companies even have negative equity, so the pricetobook ratio cannot be applied to them. Increase market share in all the markets to counter the threat from the recent adidasreebok merger.
The peg ratio for this company is based on expected earnings for twelve months ending april 2021 back to nke overview data provider. Market to book financial ratio the balance small business. Expand further into international markets such as emerging markets and spur growth in the european and japanese markets. Nikes other competitor is puma, the third largest shoe and sports clothing supplier. Applying this formula, nikes price book ratio is calculated below. So based on this analysis wed expect nike to have a high pe ratio. The company has grown its dividend for the last 2 consecutive years and is increasing. The book to market ratio is used to find the value of a company by comparing the book value of a firm to its market value. The debtequity ratio can be defined as a measure of a companys financial leverage calculated by dividing its longterm debt by stockholders equity. The book value is essentially the tangible accounting value of a firm.
Its portfolio brands include the nike brand, jordan brand, hurley and converse. Fundamental analysis data for nike inc nke, including priceearnings ratios and earnings per share, at ally invest. View pmmaf business summary and other industry information. A high pb ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Start a 14day free trial to morningstar premium to unlock our take on nke.
Book value is defined as total assets minus liabilities, preferred. Companys current price to tangible book ratio has decreased due to shareprice contraction of. Nike price to book analysis price to book pb ratio is used to relate a company book value to its current market price. Nke pb ratio explanation unlike valuation ratios relative to the earning power such as pe ratio, ps ratio or pricetofreecashflow, the pricetobook ratio measures the valuation of the. We help investors to determine the real value of nike using virtually all public information available. The price to book ratio or pb is calculated as market capitalization divided by its book value. This is the financialssite for the company nike on markets insider. Market to book ratio price to book formula, examples. Nike s debt equity hit its fiveyear low in may 2015 of 9.
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