Nike Valuation
| NKE Stock | EUR 85.77 0.35 0.41% |
At this time, the firm appears to be overvalued. Nike Inc secures a last-minute Real Value of €74.0 per share. The latest price of the firm is €85.77. Our model forecasts the value of Nike Inc from analyzing the firm fundamentals such as Profit Margin of 0.11 %, return on equity of 0.37, and Current Valuation of 166.12 B as well as examining its technical indicators and probability of bankruptcy. In general, most investors recommend locking in undervalued stocks and disposing overvalued stocks since, at some point, asset prices and their ongoing real values will merge together.
Overvalued
Today
Please note that Nike's price fluctuation is very steady at this time. Calculation of the real value of Nike Inc is based on 3 months time horizon. Increasing Nike's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Our valuation method for Nike Inc is useful when determining the fair value of the Nike stock, which is usually determined by what a typical buyer is willing to pay for full or partial control of Nike. Since Nike is currently traded on the exchange, buyers and sellers on that exchange determine the market value of Nike Stock. However, Nike's intrinsic value may or may not be the same as its current market price, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 85.77 | Real 74.0 | Hype 85.77 | Naive 83.69 |
The real value of Nike Stock, also known as its intrinsic value, is the underlying worth of Nike Inc Company, which is reflected in its stock price. It is based on Nike's financial performance, assets, liabilities, growth prospects, management team, or industry conditions. The intrinsic value of Nike's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Nike's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of Nike Inc helps investors to forecast how Nike stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Nike more accurately as focusing exclusively on Nike's fundamentals will not take into account other important factors: Nike Valuation Ratios as Compared to Competition
Comparative valuation techniques use various fundamental indicators to help in determining Nike's current stock value. Our valuation model uses many indicators to compare Nike value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Nike competition to find correlations between indicators driving Nike's intrinsic value. More Info.Nike Inc is considered to be number one stock in price to earning category among related companies. It is considered to be number one stock in price to book category among related companies fabricating about 0.34 of Price To Book per Price To Earning. The ratio of Price To Earning to Price To Book for Nike Inc is roughly 2.90 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Nike by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Nike's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Nike's earnings, one of the primary drivers of an investment's value.Please note that valuation analysis is one of the essential comprehensive assessments in business. It evaluates Nike's worth, which you can determine by considering its current assets, liabilities and future cash flows. The investors' valuation analysis is an important metric that will give you a perspective on different companies. It helps you know the worth of the potential investment in Nike and how it compares across the competition.
About Nike Valuation
The stock valuation mechanism determines the current worth of Nike Inc on a weekly basis. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Nike Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Nike Inc based exclusively on its fundamental and basic technical indicators. By analyzing Nike's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Nike's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Nike. We calculate exposure to Nike's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Nike's related companies.NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon. NIKE INC operates under Footwear Accessories classification in Germany and is traded on Frankfurt Stock Exchange. It employs 76700 people.
8 Steps to conduct Nike's Valuation Analysis
Company's valuation is the process of determining the worth of any company in monetary terms. It estimates Nike's potential worth based on factors such as financial performance, market conditions, growth prospects, and overall economic environment. The result of company valuation is a single number representing a Company's current market value. This value can be used as a benchmark for various financial transactions such as mergers and acquisitions, initial public offerings (IPOs), or private equity investments. To conduct Nike's valuation analysis, follow these 8 steps:- Gather financial information: Obtain Nike's financial statements, including balance sheets, income statements, and cash flow statements.
- Determine Nike's revenue streams: Identify Nike's primary sources of revenue, including products or services offered, target markets, and pricing strategies.
- Analyze market data: Research Nike's industry and market trends, including the size of the market, growth rate, and competition.
- Establish Nike's growth potential: Evaluate Nike's management, business model, and growth potential.
- Determine Nike's financial performance: Analyze its financial statements to assess its historical performance and future potential.
- Choose a valuation method: Consider the Company's specific circumstances and choose an appropriate valuation method, such as the discounted cash flow (DCF) or comparable analysis method.
- Calculate the value: Apply the chosen valuation method to the financial information and market data to calculate Nike's estimated value.
- Review and adjust: Review the results and make necessary adjustments, considering any relevant factors that may have been missed or overlooked.
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Nike Inc. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Complementary Tools for Nike Stock analysis
When running Nike's price analysis, check to measure Nike's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Nike is operating at the current time. Most of Nike's value examination focuses on studying past and present price action to predict the probability of Nike's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nike's price. Additionally, you may evaluate how the addition of Nike to your portfolios can decrease your overall portfolio volatility.
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