NIKE, Inc. (NYSE:NKE) kept active in under and overvalue discussion, NKE holds price to book ratio of 7.81 that presents much better indicator to find market price of a share price over its book value of equity for investment valuation. In addition, the firm has price to earnings ratio of 25.60, which is authentic method to judge but not universal for all situation.
NIKE, Inc. (NKE) released its financial results for its fiscal 2017 third quarter ended February 28, 2017. Consumer demand in all geographies drove revenue growth across the NIKE Brand portfolio. Diluted earnings per share were up 24% and grew faster than revenue, primarily due to selling and administrative expense leverage, higher other income (net), a lower effective tax rate and a lower average share count.
“The power of NIKE’s diverse, global portfolio delivered another solid quarter of growth and profitability,” said Mark Parker, Chairman, President and CEO, NIKE, Inc. “To expand our leadership and ignite NIKE’s next phase of growth, we’re delivering a relentless flow of innovation through performance and style, increasing speed throughout the business and creating more direct connections with consumers leveraging digital and membership.”**
Fundament/ News Factor in Focus
Taking look on ratio analysis, NKE has forward price to earnings ratio of 22.02, compare to its price to earnings ratio of 25.60. Adding one more ration to find detail valuation of security, price to earnings growth ration that stands at 2.10. The co is presenting price to cash flow as 15.70 and while calculating price to free cash flow it concluded at 35.49, the low single digit may indicate stock is undervalued and vice versa. On other hand, keeping in mind stable cash flows but few growth prospects make traders to value lower.
The firm has price volatility of 1.69% for a week and 1.56% for a month. Its beta stands at 0.47 times. Narrow down four to firm performance, its weekly performance was 1.27% and monthly performance was 2.54%.
Tata Motors Limited (NYSE:TTM) runs in leading trade, it plummeting -2.35% to traded at $35.76. TTM attains analyst recommendation of 1 on scale of 1-5 with week’s performance of -0.33%.
To find out the technical position of TTM, it holds price to book ratio of 2.01 that unearth high-growth companies selling at low-growth prices, but it requires appropriate measurement approach. It has forward price to earnings ratio of 7.71, and price to earnings ratio calculated as 14.66. The price to earnings growth ration calculated as 0.53.
EPS estimates indicating constrictive facts, the current year from sell-side analysts, Price to current year EPS stands at 10.40%, and looking further price to next year’s EPS is 41.50%. While price to earning ration of 14.66 attracting passive investors.