Nike Stock Analysis

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At a share price of 124, Nike stock has a market cap of 195.7 billion dollars.

With 10.6 billion of cash, including short term investments, and 8.9 billion of long term debt the enterprise value is around 194 billion.

That’s the rough figure you’d have to pay if you wanted to buy the company outright. Over the last 12 months, Nike has made just over 49 billion dollars in revenue and earned 5.6 billion dollars in net income.

That means Nike stock is currently valued at 3.9 times revenue or 35 times earnings. And Nike stock also pays a dividend of just over 1%.

Looking at a historical chart, Nike typically trades between 20-30 times earnings. So the current 35 times earnings multiple is not cheap, particularly as we move into a higher interest rate environment.

But investors like to pay up for quality stocks in uncertain times. And Nike is certainly a quality company. Earnings have grown at a remarkably consistent rate over the past 15 years, just over 11% compounded. And free cash flow has grown around 9.2% as well.