Nike has now shed 30% of its value in 2024. If you’d bought the world’s most famous sneaker company five years ago, you should’ve been on the right side of trends such as growth in e-commerce and the casualisation of the world during the pandemic. Instead, you would be down 10% on your position and dividends wouldn’t have saved you.

The p:e multiple at Nike was about 34 five years ago. It’s now crashed to 20 — an even lower level than we saw in March 2020, when the world went mad. Even though earnings are up over five years (admittedly not by much), the unwind in the valuation multiple has ruined returns...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.