Is NIKE, Inc. overvalued or undervalued?

As of 30 June 2025, the valuation grade for NIKE, Inc. has moved from expensive to very expensive, indicating a significant increase in perceived overvaluation. The company is currently considered overvalued. Key valuation ratios include a P/E ratio of 21, an EV to EBITDA of 16.56, and a Price to Book Value of 6.62, which are all above industry norms, suggesting that NIKE is trading at a premium compared to its peers. For instance, its peer, which has a P/E of 34.05, further emphasizes the disparity in valuation.
In terms of performance, NIKE has underperformed relative to the S&P 500 across multiple time frames, with a 1-year return of -10.88% compared to the S&P 500's 17.14%. This trend of underperformance, coupled with the high valuation ratios, reinforces the conclusion that NIKE, Inc. is overvalued in the current market environment.