EV/EBITDA

Nike's EV/EBITDA of 13.6x means its enterprise value (total company worth including debt) is 13.6 times its earnings before interest, taxes, depreciation, and amortization—a common measure of how cheap or expensive a stock is relative to its operating profit.

That ratio sits almost exactly at the sector median of 13.7x, placing Nike in the 49th percentile among its peers, so it is valued in line with the typical company in its industry. The metric has been decreasing over the last eight quarters, with a year-over-year drop of 19.4% and a quarter-over-quarter decline of 9.5%, indicating a clear downward trend. A valuation that is average for the sector but rapidly shrinking suggests decreasing investor confidence or falling profitability expectations, which can signal higher risk if the trend continues. However, because the current multiple is not elevated, the downside from a valuation correction is limited. This metric supports the overall NEUTRAL verdict, as the combination of a sector-average level and a declining trend points to neither a compelling bargain nor an obvious overvaluation.

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