Rubber & Plastics Footwear · SIC 3021

NIKE, Inc.

NKE

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Latest revenue

$11.28B

as of 2026-02-28

Latest net income

$520.0M

as of 2026-02-28

Net margin

4.6%

as of 2026-02-28

Community sentiment

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NKE vs S&P 500 · rebased to 100

-20.2% / yr 39.8 pts / yr vs S&P 500(S&P 500 +19.7% / yr) 67.4% total
Compare:

Live market

delayed ≤15 min
$44.63
3.25%
Market cap
$70.48B
Enterprise value
$71.85B
P/E (trailing)
21.9×
Forward P/E
P/B
5.00×
Dividend yield
3.7%
52-wk high
$80.17
52-wk low
$41.35
Beta
Shares out
1.58B

What this company does

AI

Nike designs, markets, and sells athletic footwear, apparel, and equipment under the Nike and Jordan brands through wholesale partners and its own direct-to-consumer stores and digital channels. Product sales—dominated by footwear—drive nearly all revenue, with $35.4 billion booked in the first nine months of fiscal 2026. Profitability is deteriorating sharply: nine-month net income fell 32% to $2.04 billion as gross margins compressed and operating cash flow dropped from $3.2 billion to $1.2 billion, reflecting Nike's ongoing turnaround under new CEO leadership.

Generated from NKE's filing dated 2025-07-17

Key risks

AI
  • Margin compression: Q3 gross margin fell to 40.2% from 41.5%; nine-month gross profit dropped $803M despite flat revenue.
  • Earnings deterioration: nine-month net income collapsed 32% to $2.04B from $3.01B; operating cash flow fell 62% to $1.23B.
  • Cash flow strain vs. capital returns: $1.80B dividends plus $546M capex outpaced $1.23B operating cash, drawing cash balance down $804M.

Generated from NKE's filing dated 2025-07-17

4.2
of 10

ActaClear Score

Neutral
#3 of 3 in Rubber & Plastics Footwear
+0.0 · 5d
Profitability·25%
3.3
Growth·15%
0.0
Value·20%
6.7
Quality·20%
10.0
Momentum·20%
0.0

Computed from 5 years of SEC fundamentals + latest market data, ranked within Rubber & Plastics Footwear (3 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.

1.23
Price / FV

Fair value · DCF

Overvalued
~19% downside at this growth
4.4% / yr
-5%30%
Terminal growthWACC 9.3% · 10y forecast
Market-implied growth at today's price: 7.2% / yrfor 10 years, holding WACC 9.3% and terminal 2.5%.
Current price
$43.24
DCF fair value
$35.09
FCF base (last FY)
$3.22B
Net debt
$497.00M
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does NKE's current valuation compare to its own past?

Current P/E
21.9×
Own 5y average
29.7×
Own 5y median
29.9×
vs. own average
-26%
Industry 5y avg P/E
19.8×
Median P/E across the top 3 peers in Rubber & Plastics Footwear by market cap, then averaged across 6 years.
vs. industry
+10%
PEG (this co.)
5.02
5y revenue CAGR
4.4%
Industry PEG
1.31
Industry 5y avg growth
15.1%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.