#NikeResearch #ProblemsInNikeResearch
Just how cheap is Nike's stock?
Nike looks cheap when judged against its recent earnings. Investors are paying about 29 times profit today, down from the early 2022 mark of roughly 40 times earnings. Foot Locker, one of its retailing partners, is priced at 34 times earnings today, and Lululemon Athletica is going for over 60 times profit.
The discount is even more prominent with respect to sales, which can smooth out volatility around profit swings. You have to pay only about 3 times annual revenue for Nike stock right now, a valuation level that investors have seen just a few times in the past several years, and only briefly at that.
Nov. 27 2024
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