Nike is engaged in design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Nke has a dividend payout ratio of 30% and trailing annual dividend yield of 1. Price to book ratio market to book value pb formula m. Nike price to book analysis price to book pb ratio is used to relate a company book value to its current market price. All numbers are in millions except for per share data and ratio. Companys current price to tangible book ratio has decreased due to shareprice contraction of.
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. The market value is the current stock price of all outstanding shares i. Market to book value ratio 20 1 00 000 1,500,000 2,000,0001,500,000 1. Market to book ratio price to book formula, examples. Cl b company facts, information and stock details by marketwatch. The company has grown its dividend for the last 2 consecutive years and is increasing.
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. Thats higher than the average in its market, which is 17. Nike inc price to tangible book ratio ptb ratios, nke. 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. Price to book pb ratio is used to relate a company book value to its current market price. Fundamental analysis data for nike inc nke, including priceearnings ratios and earnings per share, at ally invest.
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. The market price per share is simply the current stock price that the company is being traded at on the open market. Market to book ratio formula, calculation, example. The debtequity ratio can be defined as a measure of a companys financial leverage calculated by dividing its longterm debt by stockholders equity. So based on this analysis wed expect nike to have a high pe ratio. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Nke, including valuation measures, fiscal year financial statistics, trading record, share statistics and more.
Jul 31, 2019 market to book financial ratio market value. Looking back at the last five years, nikes debt equity peaked in february 2020 at 73. The current price to book ratio for nike as of may 08, 2020 is 15. The price to book ratio or pb is calculated as market capitalization divided by its book value. The booktomarket ratio is used to find the value of a company by comparing the book value of a firm to its market value. Nike inc price to book ratio pb ratios, nke valuation. Globally, if nike is in an emerging market, or a new market, it distributes its product through a third party. Nikes other competitor is puma, the third largest shoe and sports clothing supplier. 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. Increase market share in all the markets to counter the threat from the recent adidasreebok merger.
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. Nike debt to equity ratio 20062020 nke macrotrends. The peg ratio for this company is based on expected earnings for twelve months ending april 2021 back to nke overview data provider. New york including stock price, stock chart, company news, key statistics, fundamentals and. Nike has turned down in the trend channel, approaching its mean reversal. Nkes next quarterly dividend payment will be made to shareholders of record on wednesday, july 1.
A high pb ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Indepth view of key statistics and finances for nike, inc. The book value is essentially the tangible accounting value of a firm. Social media and advertising cookies of third parties are used to offer you social media functionalities and personalized ads. 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. When the market is wrong about a stock, it gives savvy investors an opportunity. We first subtract the total liabilities from the total assets. Some companies even have negative equity, so the pricetobook ratio cannot be applied to them. The difference between pricetotangiblebook and pricetobook ratio is that book value other than intangibles are used in the calculation. 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. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets.
Applying this formula, nikes price book ratio is calculated below. Nike inc s current price to book ratio has decreased due to shareprice contraction of 12. Nike sells products worldwide and outsources its production to more than 400 factories in more than 40 countries. View pmmaf business summary and other industry information. Nikes debt equity for fiscal years ending may 2015 to 2019 averaged 27. Nke is poor value based on its peg ratio 2x price to book ratio pb vs industry.
Price to book value is a valuation ratio that is measured by stock price book value per share. 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. Its portfolio brands include the nike brand, jordan brand, hurley and converse. The book value per share is a little more complicated. Nike was founded in 1964 and is based in beaverton, oregon. Nike inc market multiple valuation nke usa footwear. Nike s debt equity for fiscal years ending may 2015 to 2019 averaged 27. Book value is the accounting value of assets minus liabilities.
Start a 14day free trial to morningstar premium to unlock our take on nke. Looking back at the last five years, nike s debt equity peaked in february 2020 at 73. Current and historical debt to equity ratio values for nike nke over the last 10 years. Expand further into international markets such as emerging markets and spur growth in the european and japanese markets. To get more information or amend your preferences, press the more information button or visit cookie settings at the bottom.
Pbv ratio, the pbv ratio is interpreted as an indicator of market. Quarter and despite tangible book value increase of 0. Book value is defined as total assets minus liabilities, preferred. Nike inc financial ratios nke usa footwear infront. Nike s book value per share for the quarter that ended in feb. Its book value per share for the quarter that ended in feb. Historical price to book ratio values for nike nke over the last 10 years. It is important to understand the market to book value ratio when it is less than 1 and greater than 1. See which 3 stocks are most likely to make moves following their insider activities.
Nike asks you to accept cookies for performance, social media and advertising purposes. Its net cash position is the cherry on top of its superb eps growth. We help investors to determine the real value of nike using virtually all public information available. Nike debtequity for the three months ending november 30, 2019 was 0. 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. The price to book ratio formula is calculated by dividing the market price per share by book value per share. 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. Nike s debt equity hit its fiveyear low in may 2015 of 9. Market to book financial ratio the balance small business.
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. During the past years, the highest pb ratio of nike was 18. This is the financialssite for the company nike on markets insider. A solvency ratio calculated as total assets divided by total shareholders equity. 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.372 708 1168 1180 587 1202 134 297 1177 1394 1055 197 31 33 1183 1449 1518 435 447 622 1038 1207 825 99 956 1281 609 490 172 630 608 723 716 1310