We first subtract the total liabilities from the total assets. Ps ratio an rationale for the ps ratio is that sales, as the top line in an income statement, are generally less subject to distortion or manipulation than other fundamentals such as eps or book value. A high pb ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Expand further into international markets such as emerging markets and spur growth in the european and japanese markets. All numbers are in millions except for per share data and ratio. Market to book ratio price to book formula, examples. Market to book value ratio 20 1 00 000 1,500,000 2,000,0001,500,000 1. Nike asks you to accept cookies for performance, social media and advertising purposes. When the market is wrong about a stock, it gives savvy investors an opportunity. See which 3 stocks are most likely to make moves following their insider activities. Analyzing banks pricetobook value ratios market realist. Stocks trading lower than their book values attract investor attention because theyre considered to be. Historical price to book ratio values for under armour uaa over the last 10 years. Price to book ratio market to book value pb formula m.
The priceto book ratio formula is calculated by dividing the market price per share by book value per share. Nike is engaged in design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Start a 14day free trial to morningstar premium to unlock our take on nke. Looking back at the last five years, nike s debt equity peaked in february 2020 at 73. Book value is defined as total assets minus liabilities, preferred stocks, and intangible assets. Nike inc price to book ratio pb ratios, nke valuation. Indepth view of key statistics and finances for nike, inc. The book to market ratio is used to find the value of a company by comparing the book value of a firm to its market value. Nike inc s current price to book ratio has decreased due to shareprice contraction of 12. Normally, a companys share value will be greater than its book value because the share price takes into account investors estimate of the profitability of the company how well it uses its assets and includes best guesses of the future value of the company.
Market to book financial ratio the balance small business. The price to book ratio or pb is calculated as market capitalization divided by its book value. The market price per share is simply the current stock price that the company is being traded at on the open market. Book value is defined as total assets minus liabilities, preferred. Companys current price to tangible book ratio has decreased due to shareprice contraction of. It is important to understand the market to book value ratio when it is less than 1 and greater than 1. Stocks trading lower than their book values attract investor attention because theyre considered to. During the past years, the highest pb ratio of nike was 18. Its portfolio brands include the nike brand, jordan brand, hurley and converse. Market to book ratio formula, calculation, example.
Nke pe ratio explanation the pe ratio can be viewed as the number of years it takes for the company to earn back the price you pay for the stock. Nike inc financial ratios nke usa footwear infront. Quarter and despite tangible book value increase of 0. Nike inc price to tangible book ratio ptb ratios, nke. Nike s debt equity hit its fiveyear low in may 2015 of 9. Its book value per share for the quarter that ended in feb. Its net cash position is the cherry on top of its superb eps growth. Looking back at the last five years, nikes debt equity peaked in february 2020 at 73. The company has grown its dividend for the last 2 consecutive years and is increasing its dividend by an average of 9. To get more information or amend your preferences, press the more information button or visit cookie settings at the bottom. Under armour price to book ratio 20062020 uaa macrotrends.
So based on this analysis wed expect nike to have a high pe ratio. This is the financialssite for the company nike on markets insider. The market value is the current stock price of all outstanding shares i. The book value is essentially the tangible accounting value of a firm. Cl b company facts, information and stock details by marketwatch. Nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach. Nikes other competitor is puma, the third largest shoe and sports clothing supplier. Nke has a dividend payout ratio of 30% and trailing annual dividend yield of 1. The book value is essentially the tangible accounting value of a firm compared to the market value that is shown. Nike s debt equity for fiscal years ending may 2015 to 2019 averaged 27. May 15, 2020 the peg ratio for this company is based on expected earnings for twelve months ending april 2021 back to nke overview data provider. The peg ratio for this company is based on expected earnings for twelve months ending april 2021 back to nke overview data provider.
All banks use marktomarket accounting, unlike nonfinancials in which there may be wide disparity between book value and actual market value of the. Price to book value is a valuation ratio that is measured by stock price book value per share. Nkes next quarterly dividend payment will be made to shareholders of record on wednesday, july 1. Jul 31, 2019 market to book financial ratio market value. Nike has turned down in the trend channel, approaching its mean reversal. Nike is a seller of athletic footwear and athletic apparel across the world. Nikes debt equity for fiscal years ending may 2015 to 2019 averaged 27. The current price to book ratio for nike as of may 15, 2020 is 14. Pbv ratio, the pbv ratio is interpreted as an indicator of market judgment.
The booktomarket ratio is used to find the value of a company by comparing the book value of a firm to its market value. A solvency ratio calculated as total assets divided by total shareholders equity. The company has grown its dividend for the last 2 consecutive years and is increasing. Nike price to book analysis price to book pb ratio is used to relate a company book value to its current market price. Learn about nke with our data and independent analysis including price, star rating, valuation, dividends, and financials. These metrics suggest that this publiclytraded organization will not likely result in investment gains. The current price to book ratio for under armour as of may 15, 2020 is 2. Thats higher than the average in its market, which is 17. Pbv ratio, the pbv ratio is interpreted as an indicator of market.
The pbv ratio is interpreted as an indicator of market judgment about the relationship between a companys required rate of return and its actual rate of return. New york including stock price, stock chart, company news, key statistics, fundamentals and company profile. Social media and advertising cookies of third parties are used to offer you social media functionalities and personalized ads. Nike inc market multiple valuation nke usa footwear. The market to book ratio also called the price to book ratio, is a financial valuation metric used to evaluate a companys current market value relative to its book value. Increase market share in all the markets to counter the threat from the recent adidasreebok merger. Feb 26, 2020 nike is a sound stock based on its steady stock performance and growth in earnings per share, revenue and net income, strong balance sheet, and management approach. Shifting the focus to workforce efficiency, nike, inc. Nke, including valuation measures, fiscal year financial statistics, trading record, share statistics and more. Tipranks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. Some companies even have negative equity, so the pricetobook ratio cannot be applied to them. Price to book pb ratio is used to relate a company book value to its current market price. The book value per share is a little more complicated.
Historical price to book ratio values for nike nke over the last 10 years. In the event that price reaches the mean reversal and the long term rsi starts to turn upwards, i will look for a long position, with target towards upper trend channel ath. Generally, banking stocks trade between 1x and 2x their book values. View pmmaf business summary and other industry information. Book value is the accounting value of assets minus liabilities.
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