Is Nike overvalued or undervalue

Nike is currently undervalued. Here's the analysis to support this conclusion:

1. Intrinsic Value Analysis: The intrinsic value of Nike is calculated to be higher than the current market price, indicating that the stock is undervalued. For instance, Alpha Spread's intrinsic value calculation suggests a value higher than the market price.
2. Valuation Metrics: Nike's Price-to-Earnings (P/E) ratio is 23.22, which is lower than the industry average, suggesting that the stock may be undervalued relative to its earnings. The Price-to-Book (P/B) ratio is 8.83, and the Price-to-Sales (P/S) ratio is 2.66, both of which are above the market average. This could indicate that the market is currently valuing the company higher than its book and sales, which may suggest a more reasonable valuation.

3. Market Performance: Nike's stock price has experienced a decline, partly due to a revenue miss and withdrawing full-year guidance. However, the company's gross margin expansion and the anticipation of a new CEO have not been fully reflected in the current valuation.
4. Analyst Ratings: Despite the recent setbacks, analysts have an overall positive outlook on Nike, with some maintaining strong buy ratings and price targets significantly above the current trading price. This suggests that analysts do not believe the stock is fully valued at its current price.
5. Intrinsic Potential: Nike's strong brand portfolio and innovation in products position it well for future growth. The company's expected revenue growth and margin expansion could lead to a higher valuation in the future.
6. Financial Health: Nike's return on equity (ROE) of 7.41% indicates that the company is generating profits efficiently, which is a positive sign for its valuation.

In conclusion, while Nike's P/E ratio is lower than some industry averages, its other valuation metrics and the market's anticipation of future growth suggest that the stock is undervalued. The company's strong brand presence, innovation, and financial health support this conclusion.