NIKE, Inc. (NKE) Fair Value & PE Analysis
Apparel - Footwear & Accessories · NYSE
Current Price
$37.15
PE Ratio (TTM)
17.8x
Intrinsic Value
$31.47
-18.0% margin of safety
What Is NIKE, Inc.'s Fair Value?
As of 2026-10-28, applying a 17.9x earnings multiple to NIKE, Inc.'s (NKE) earnings per share of $2.08 yields a fair value estimate of $31.47 per share, versus a market price of $37.15.
Fair value from earnings multiples is sensitive to the multiple you choose. Across the sensitivity grid the estimate spans $25.21 to $38.72. This is a relative estimate anchored to earnings, not a statement of fact. For a cash flow based view, see the intrinsic value estimate on the DCF page.
How the PE model works · Recalculate in PE mode · NKE intrinsic value (DCF view)
Is NIKE, Inc. (NKE) Overvalued?
At $37.15, NKE trades above its PE-based fair value estimate, meaning the market pays a premium over the applied earnings multiple. By this model the stock looks expensive unless earnings grow into the price.
COMPETITIVE MOAT
↑Brand Equity and Consumer Loyalty
Nike's iconic brand commands immense global recognition and aspirational appeal. This fosters strong customer loyalty, making consumers willing to pay a premium for its products.
↑Scale and Distribution Network
The company's vast global supply chain and extensive retail presence, both physical and digital, create significant barriers to entry. This scale allows for efficient production and broad market reach.
↑Product Innovation and Design
Nike consistently invests in research and development, leading to innovative product designs and technologies. This fuels demand and maintains its position at the forefront of athletic wear.
INVESTMENT RISKS
↓Supply Chain Disruptions
Reliance on a global supply chain makes Nike vulnerable to geopolitical events, trade disputes, and logistical challenges. These can lead to production delays and increased costs.
↓Changing Consumer Preferences
Shifts in fashion trends and consumer demand for sustainability or different product categories could impact Nike's relevance. Failure to adapt quickly can lead to declining sales.
↓Dividend Sustainability Concerns
Recent downgrades highlight investor concerns about Nike's ability to maintain its dividend. This could signal underlying financial pressures and impact investor sentiment.
Base case
NKE base case PE valuation
Intrinsic Value
$31.47
Margin of safety
-18.0%
Expected annual return
-3.3%
Base case assumptions: 0.4% annual earnings growth, 17.86x target PE, 10% discount rate, 5 year projection. Data as of 2026-10-28.
This base case uses default assumptions and is not financial advice. The fair value changes significantly when the target PE or earnings growth rate changes. Open the calculator to set your own assumptions and see the full sensitivity range.
Customize the NKE PE valuation
Adjust the target PE, earnings growth, and discount rate to see how the fair value and margin of safety for NIKE, Inc. respond.
Open PE Calculator for NKECompany Overview
NIKE, Inc., through its various subsidiaries, operates as a global enterprise focused on the design, development, marketing, and sale of athletic footwear, apparel, equipment, and accessories for all ages and genders. Beyond its primary offerings, the company provides a range of athletic and casual footwear, clothing, and accessories under the notable Jumpman trademark. It also distributes a variety of casual sneakers, apparel, and accessories, featuring well-known brands like Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell. Under the NIKE brand itself, the company supplies a comprehensive line of performance sports gear and accessories, such as bags, socks, sports balls, eyewear, timepieces, digital devices, bats, gloves, and protective equipment. Additionally, NIKE sells various plastic products to other manufacturers. The company also markets sportswear adorned with licensed logos from college and professional sports teams and leagues. Furthermore, it engages in licensing arrangements, allowing unaffiliated parties to manufacture and sell apparel, digital devices, applications, and other sports equipment under NIKE-owned trademarks. Its extensive product catalog reaches consumers globally through diverse channels, including specialized footwear, sporting goods, athletic specialty, department, skate, tennis, and golf stores. Distribution occurs via NIKE's proprietary retail outlets, digital e-commerce platforms, independent distributors, authorized licensees, and sales representatives. Founded in 1964, the company was originally named Blue Ribbon Sports, Inc., before officially becoming NIKE, Inc. in 1971, and maintains its corporate headquarters in Beaverton, Oregon.
Financial Metrics — NKE PE Stock Valuation Data
PE Ratio (TTM)
17.8x
PEG Ratio
2.48
Earnings Yield
5.61%
ROE (TTM)
21.2%
Revenue/Share (TTM)
$30.93
Dividend Yield
4.41%
Debt/Equity
0.73x
Frequently Asked Questions
What is the PE ratio of NKE?
The trailing twelve-month PE ratio of NKE reflects how much investors pay per dollar of NIKE, Inc.'s earnings. This metric is most useful when compared to Apparel - Footwear & Accessories peers and the company's own historical range.
Is NKE overvalued based on PE ratio?
NKE's PE of 17.8x combined with a PEG ratio of 2.48 provides a growth-adjusted perspective. A PEG above 2.0 means the P/E is high relative to the earnings growth rate. Keep in mind that PE-based valuation works best for profitable, mature companies — for high-growth or cyclical Apparel - Footwear & Accessories, a DCF analysis may be more appropriate.
How do I value NKE stock using PE ratio?
To value NIKE, Inc. using PE: (1) Compare the current PE (17.8x) against the Apparel - Footwear & Accessories median to assess relative pricing, (2) check the PEG ratio (2.48) to adjust for growth expectations, (3) review the 5-year PE range to identify where the stock sits historically, and (4) estimate fair value by multiplying a target PE by forward EPS estimates. This relative approach complements DCF's absolute valuation.
What is the PEG ratio of NKE?
NKE's PEG ratio is 2.48, calculated by dividing the PE ratio (17.8x) by the expected earnings growth rate. A PEG above 2.0 means the P/E is high relative to the expected earnings growth rate. Note that PEG accuracy depends on the reliability of growth estimates.
Should I use PE ratio or DCF for NKE stock valuation?
PE ratio gives a quick relative read — how NKE is priced versus Apparel - Footwear & Accessories peers. DCF provides an absolute value based on projected free cash flows. For NKE, with a strong ROE of 21.2%, both methods are worth using — PE for a market-relative check, DCF to stress-test whether fundamentals justify the price. Each method has blind spots: PE ignores capital structure and cash flow quality, while DCF is sensitive to growth and discount rate assumptions.
Learn More
- See NKE DCF Valuation → — Intrinsic value via Discounted Cash Flow analysis
- PE Methodology — Step-by-step guide to PE ratio stock valuation
- DCF Methodology — Guide to discounted cash flow analysis
- PE Ratio — Understanding the price-to-earnings ratio
- Intrinsic Value — How to evaluate stock fair value
Related PE Valuations
All Consumer Cyclical valuationsP/E and DCF value NKE with different methods and assumptions, so the two conclusions can differ. Compare the DCF intrinsic value.
Price as of 2026-10-28. Financial data from Financial Modeling Prep (trailing twelve months) · Valuation methodology by Charlie Wang.
This is an estimate, not investment advice.