Nike’s beta is 0.51. c) (Expected Return of the Market — Risk-Free Rate of Return) is also called market premium. We consider market premium to be 6%.
In this post
Is Nike a high risk stock?
“The Risk Score is a relevant measure for the assessment of a stock attractiveness. NIKE Inc. shows a Risk Score of 7.00. 0 corresponds to a very high risk and 10 corresponds to a very low risk.”
Beta (Ref: DJIA)
| Levered beta | Unlevered beta | |
|---|---|---|
| 3-Year | 1.09 | 1.10 |
What is the market value of equity for Nike?
As of August 2022 Nike has a market cap of $182.06 Billion.
What is the beta for Nike?
(NKE) Valuation Measures & Financial Statistics.
Stock Price History.
| Beta (5Y Monthly) | 1.02 |
|---|---|
| 52 Week High 3 | 179.10 |
| 52 Week Low 3 | 99.53 |
| 50-Day Moving Average 3 | 109.89 |
| 200-Day Moving Average 3 | 134.15 |
What is Nike’s cost of debt?
According to the Nike’s most recent financial statement as reported on January 5, 2021, total debt is at $9.45 billion, with $9.41 billion in long-term debt and $41.00 million in current debt. Adjusting for $8.63 billion in cash-equivalents, the company has a net debt of $816.00 million.
What are Nike’s risks?
Nike’s Threats – External Strategic Factors
- Counterfeit Products – Counterfeit products can significantly affect the revenue and reputation of Nike.
- Increased competitive pressure – Although, Nike is a dominating the athletic industry, competition, and new emerging brands are still potential threats to the company.
Why is Nike overvalued?
Method of multiples
Considering the price multiples, again Nike is very overvalued since its multiples are far higher than those of its competitors in the same sector.
What is Nike’s risk free rate?
2.37000000%
It is updated daily. The current risk-free rate is 2.37000000%.
Who is Nike’s target market?
Although with apparel and sports the market can be broad, for the most part Nike primarily targets consumers who are between the ages of 15-40. The company caters to both men and women athletes equally, and is placing an increasing focus on tweens and teens to build long-term brand loyalty.
How big is the Nike market?
Nike is the most valuable apparel brand, boasting a brand value of over 30 billion U.S. dollars. In other words, Nike is not just the world’s leading sports clothing brand, it is also the single most valuable apparel brand on the planet overall.
What is a good PE ratio?
So, what is a good PE ratio for a stock? A “good” P/E ratio isn’t necessarily a high ratio or a low ratio on its own. The market average P/E ratio currently ranges from 20-25, so a higher PE above that could be considered bad, while a lower PE ratio could be considered better.
What is Nike’s EBIT?
NIKE 2022 annual EBIT was $6.675B, a 3.78% decline from 2021. NIKE 2021 annual EBIT was $6.937B, a 122.7% increase from 2020. NIKE 2020 annual EBIT was $3.115B, a 34.72% decline from 2019.
Is Nike a good stock to buy?
As of October 12, 2021, Nike Inc had a $237.9 billion market capitalization, compared to the Footwear median of $4889.7 billion, Nike Inc’s stock is up 9.6% in 2021, up 4.2% in the previous five trading days and up 18.5% in the past year. Currently, Nike Inc’s price-earnings ratio is 40.7.
Is NIKE highly leveraged?
NIKE’s financial leverage last quarter was 2.6x. NIKE’s financial leverage for fiscal years ending May 2018 to 2022 averaged 2.9x. NIKE’s operated at median financial leverage of 2.6x from fiscal years ending May 2018 to 2022. Looking back at the last five years, NIKE’s financial leverage peaked in May 2020 at 3.9x.
Does NIKE have more debt or equity?
1 Nike’s capital structure has high equity capital relative to debt, with a debt-to-equity ratio of 0.66, though this figure rose sharply in 2020 due to store closures. 2 The company’s enterprise value grew rapidly in the five years leading up to 2021, driven almost entirely by the appreciating value of its equity.
Does NIKE have a lot of debt?
NIKE long term debt for 2021 was $9.413B, a 0.07% increase from 2020. NIKE long term debt for 2020 was $9.406B, a 171.54% increase from 2019.
Compare NKE With Other Stocks.
| NIKE Annual Long Term Debt (Millions of US $) | |
|---|---|
| 2020 | $9,406 |
| 2019 | $3,464 |
| 2018 | $3,468 |
| 2017 | $3,471 |
What is Nike’s biggest problem?
Nike is facing snarls in its supply chain that are slowing imports from its Asian factories and dragging down sales. Consumers’ preferences, priorities, and values are reshaping industries.
What are some of Nikes weaknesses?
Weaknesses
- Labor conditions are problematic.
- Retailers are a major factor.
- It is most well-known only for its footwear.
- It is very dependent on the U.S. market.
- It has been vulnerable to lawsuits.
- It has been plagued by sexual harassment allegations.
Is Nike a buy sell or hold?
NIKE has received a consensus rating of Buy. The company’s average rating score is 2.67, and is based on 20 buy ratings, 10 hold ratings, and no sell ratings.
Is Nike undervalued stock?
Nike Inc secures a last-minute Real Value of $130.01 per share. The latest price of the firm is $112.23. At this time, the firm appears to be undervalued.
1.01.
| Low | Target Price | High |
|---|---|---|
| 140.00 | 184.65 | 202.00 |
Is Nike a blue chip?
Blue-chip stocks are companies that have been around for a long time, are worth a lot of money, and are financially healthy. Most blue-chips are household names like Nike and Coca-Cola.