NIKE, Inc. (NKE) Stock Analysis
Score BCompounder · Grade B · Bearish
$55.12
$57.33
+4.0%
10/10
B
Compounder
Investment Thesis
Great company, NOT great price. Quality justifies holding but asymmetry not attractive for new positions.
Trading near modeled fair value. No strong quantitative signal.
For New Investors
Price above modeled value range
For Current Holders
Quantitative score: neutral
Buy if
- Price drops 15-20% (improves asymmetry)
- Bull scenario catalysts materialize
- Market-wide correction creates opportunity
Sell if
- Bear scenario triggers occur
- Quality metrics deteriorate (ROIC declining)
- Better alternatives emerge
Valuation
Fair Value estimate: $57.33 (+4.0%). Slightly undervalued.
PEG-Based EPS
$29.19
FCF DCF Model
$56.72
EV/EBITDA
$61.68
Blended Fair Value
$57.33
Confidence
Medium
Methods
PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA
Quality Analysis
79/120 points
Investable
ROE (3Y Avg)
33.4%
ROIC-WACC Spread
2.0%
D/E Ratio
0.8x
Current Ratio
2.2x
Interest Coverage
13x
FCF Positive Years
3/3
Quality Flags
- ROIC spread: 2.0pp (got 5/25 pts)
- Leverage: D/E 0.8x (9/15 pts)
Market Sentiment
Wall Street Consensus
$72.00
+30.6% Upside
33 analysts
Range: $62.00 — $110.00
Rating: Buy
Our model is slightly more cautious than Wall Street.
Trend & Technical
Price ($55.12) is 16.9% below SMA 200 ($66.33). Bearish trend. Caution on entry.
Tech Score 29/100 — Very weak technicals. Multiple bearish signals active.
Risk & Reward
Asymmetry Ratio
5.70:1
Expected Return
+21.5%
Bull Upside
+57.0%
Bear Downside
-10.0%
Excellent asymmetry: 5.70:1 ratio. Upside significantly outweighs downside.
Verdict: Very Favorable
Scenario Analysis
Bear
Base
Bull
Buy Zone & Action Plan
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AI Executive Summary
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Technical Analysis
RSI, MACD, moving averages, trend signals, and momentum indicators.
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Frequently Asked Questions
What is the fair value of NKE?
Based on our multi-method conviction analysis, the estimated fair value of NIKE, Inc. (NKE) is $57.33. This is calculated by blending PEG-Based EPS, FCF 2-Stage DCF, EV/EBITDA and applying a quality premium of 0% based on the company's fundamentals. The confidence level of this estimate is medium.
Is NKE a buy, sell, or hold?
NKE currently has a HOLD rating with a conviction score of 10/10. Great company, NOT great price. Quality justifies holding but asymmetry not attractive for new positions. Price above modeled value range.
Is NKE a high-quality stock?
NIKE, Inc. has a quality grade of B (79/120 points), rated as Investable. Key metrics include ROE of 33.4%, ROIC-WACC spread of 2.0%, and D/E ratio of 0.8x.
What type of stock is NKE?
NKE is classified as a "compounder" in our framework. High P/E: 32.2x, Mature growth: 1.8%, Cyclical sector: Consumer Cyclical, Dividend paying: 2.9%, Strong ROE: 18.4%
What do Wall Street analysts say about NKE?
33 Wall Street analysts have a consensus price target of $72.00 for NKE, representing +30.6% upside. Targets range from $62.00 to $110.00. The consensus recommendation is "Buy". Our model is slightly more cautious than Wall Street.
What are the risks of investing in NKE?
The risk/reward asymmetry ratio for NKE is 5.70:1, rated as Very Favorable. Excellent asymmetry: 5.70:1 ratio. Upside significantly outweighs downside. The expected return is +21.5%, with bull case upside of +57.0% and bear case downside of -10.0%.
What is the current trend for NKE?
NKE is in a bearish trend. Price ($55.12) is 16.9% below SMA 200 ($66.33). Bearish trend. Caution on entry. The technical score is 29/100.
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Last updated: March 18, 2026 · Framework version 3.7
This analysis is for informational purposes only and should not be considered financial advice. Always do your own research before making investment decisions.