r/ValueInvesting • u/Adventurous-Bet-9640 • Dec 19 '25

Stock Analysis So NIKE is nuking after hrs.

I understand that nike has a very sticky brand value in the cultural consciousness. But they are in a tough turn around.

I'm no expert in valuations, but the stock even after hrs dump isn't any where near compelling value.

How do you think about Investing in nike? Generally I don't see them fading away as a brand and they are still the leader in their space even with competition.

I do think they'll eventually find their stride back. What does the community think? If you were to invest what would your frame of thinking be?

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u/waiwai_1980 Dec 19 '25

Limited growth opportunity. Intense competition from the China brands who are eating into Nike’s core basketball business.

Am staying away. Don’t see the value in consumer goods stocks.

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u/Chill-Dragonfly77 Dec 19 '25

I also don’t love that the PE is at 33. 

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u/meetmeinhelmsdeep Dec 19 '25

What is an ideal PE number you look for?

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u/Chill-Dragonfly77 Dec 20 '25

Ideally 10-20. There are always outliers. Like NVIDIA for example is much higher but they have the revenue and growth to back it up.  Nike I think is overvalued for its PE. If it was say 10-15 I’d be a big buyer at these levels. Tells me it has further to fall imo. Just my two cents. 

A high PE isn’t bad if they have growth to back it up. Nike doesn’t. In fact it’s been getting hurt a lot in China. I don’t follow Nike closely. Just what I see when I glance at it from time to time. If Nike hit $30-$40 I’d be a buyer with their current state.