Adidas is overvalued (P ratio 20) and too risky due to volatile demand and fickle consumer preferences; no value present.
Bearish
“ONON, LULU, NIKE, DECK, BIRK, ANTA Sector Analysis”
Value Investing with Sven Carlin, Ph.D.Published Aug 28 · 3 passages
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Adidas is a better stock.
Adidas. It was expensive. It was cheap. It was expensive. It was cheap. Now it's somewhere in the middle P ratio of 20. When it was at 115, I told you you will likely make money on it.
But the shoes were crazy. Then they went back to the standard designs and the stock exploded then went down. Things like that. It's not cheap. No value there. Depends on the fashion trends. Consumer preferences are fickle. Too risky.
Now you can see here how those margins go up and down depending on demand. They started growing a little bit again margins up markets loves it again which means it's risky.
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Value Investing with Sven Carlin, Ph.D. has only this one call on this stock.
2026-08-28BearishThis one
Adidas is a better stock.