Nike, Inc.

Methodology

Nike's earnings visibility depends on brand strength, product innovation cycles, and execution of its DTC transformation strategy. International growth and digital sales provide some predictability though inventory management and wholesale dynamics create quarterly volatility. The calculation works when brand momentum is strong but becomes less reliable during product missteps or execution challenges.

Methodology

Nike historically commanded premium PEG ratios reflecting brand strength and global growth potential, though recent execution challenges have compressed valuations. During innovation cycles with strong product acceptance, moderate PEG ratios can be justified. Compare to Nike's historical range, athletic peer Adidas, and premium brand Lululemon while considering category positioning and execution consistency.

Methodology

Nike offers a meaningful dividend with a long track record of increases, making PEGY relevant for evaluating total returns for this mature athletic brand. The dividend adds value though capital appreciation from brand strength and international expansion matters more. PEGY better captures total return potential for investors seeking both growth and income from this established leader.