Based on the latest data from August 2025, Nike (NKE) is trading at $77.37, positioning the stock in the undervalued zone below the 18.8x PE multiple boundary of $40.65. This represents a significant undervaluation, as the stock price substantially exceeds even the highest PE boundary of 73.1x at $158.43, indicating the stock is actually trading in the warning zone at severely overvalued levels. The current price sits well above all PE stream boundaries, suggesting investors should exercise extreme caution at these valuation levels. Analyzing the historical trend, Nike's valuation has experienced dramatic fluctuations over the past five years. The stock began 2020 trading around $94.94 in the fair to watch interval between PE multiples, then crashed to $74.64 in March 2020 during the pandemic, falling into undervalued territory. A remarkable recovery followed, with the stock surging to peak levels around $162 in late 2021, pushing well into the warning zone above 73.1x PE. The subsequent correction from 2022 through mid-2024 brought valuations back toward more reasonable levels, with prices declining to the $56-80 range. However, the recent rebound to current levels near $77 has once again elevated the stock into overvalued territory, suggesting the market may be pricing in optimistic growth expectations that exceed historical PE ratio norms for the company.