M Valuation

Macy's Inc

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13.580

+0.64(4.946%)1D

Overview
Forecast
Valuation
Earnings

M Relative Valuation

M's fair value is calculated using relative valuation, based on historical P/E and P/S ranges and their premiums/discounts relative to a competitor average, adjusted by weights. If the market price exceeds this fair value range, M is overvalued; if below, it's undervalued.

Historical Valuation

Macy's Inc (M) is now in the Undervalued zone, suggesting that its current forward PS ratio of 0.17 is considered Undervalued compared with the five-year average of 1.10. The fair price of Macy's Inc (M) is between 32.89 to 40.30 according to relative valuation methord. Compared to the current price of 13.58 USD , Macy's Inc is Undervalued By 58.71%.

Relative Value

Fair Zone

32.89-40.30

Current Price：13.58

58.71%

Undervalued

7.23

Trailing

Forward

4.95

EV/EBITDA

Macy's Inc. (M) has a current EV/EBITDA of 4.95. The 5-year average EV/EBITDA is 5.45. The thresholds are as follows: Strongly Undervalued below 1.21, Undervalued between 1.21 and 3.33, Fairly Valued between 7.57 and 3.33, Overvalued between 7.57 and 9.70, and Strongly Overvalued above 9.70. The current Forward EV/EBITDA of 4.95 falls within the Historic Trend Line -Fairly Valued range.

11.65

EV/EBIT

Macy's Inc. (M) has a current EV/EBIT of 11.65. The 5-year average EV/EBIT is 13.96. The thresholds are as follows: Strongly Undervalued below -45.30, Undervalued between -45.30 and -15.67, Fairly Valued between 43.58 and -15.67, Overvalued between 43.58 and 73.21, and Strongly Overvalued above 73.21. The current Forward EV/EBIT of 11.65 falls within the Historic Trend Line -Fairly Valued range.

0.17

Macy's Inc. (M) has a current PS of 0.17. The 5-year average PS is 0.22. The thresholds are as follows: Strongly Undervalued below 0.10, Undervalued between 0.10 and 0.16, Fairly Valued between 0.27 and 0.16, Overvalued between 0.27 and 0.33, and Strongly Overvalued above 0.33. The current Forward PS of 0.17 falls within the Historic Trend Line -Fairly Valued range.

2.38

P/OCF

Macy's Inc. (M) has a current P/OCF of 2.38. The 5-year average P/OCF is 3.39. The thresholds are as follows: Strongly Undervalued below 1.58, Undervalued between 1.58 and 2.48, Fairly Valued between 4.29 and 2.48, Overvalued between 4.29 and 5.19, and Strongly Overvalued above 5.19. The current Forward P/OCF of 2.38 falls within the Undervalued range.

5.15

P/FCF

Macy's Inc. (M) has a current P/FCF of 5.15. The 5-year average P/FCF is 8.99. The thresholds are as follows: Strongly Undervalued below -3.67, Undervalued between -3.67 and 2.66, Fairly Valued between 15.32 and 2.66, Overvalued between 15.32 and 21.65, and Strongly Overvalued above 21.65. The current Forward P/FCF of 5.15 falls within the Historic Trend Line -Fairly Valued range.

Macy's Inc (M) has a current Price-to-Book (P/B) ratio of 0.79. Compared to its 3-year average P/B ratio of 1.11 , the current P/B ratio is approximately -28.88% higher. Relative to its 5-year average P/B ratio of 1.43, the current P/B ratio is about -44.87% higher. Macy's Inc (M) has a Forward Free Cash Flow (FCF) yield of approximately 17.67%. Compared to its 3-year average FCF yield of 17.42%, the current FCF yield is approximately 1.44% lower. Relative to its 5-year average FCF yield of 19.74% , the current FCF yield is about -10.47% lower.

0.79

P/B

Median3y

1.11

Median5y

1.43

17.67

FCF Yield

Median3y

17.42

Median5y

19.74

Competitors Valuation Multiple

The average P/S ratio for M's competitors is 1.21, providing a benchmark for relative valuation. Macy's Inc Corp (M) exhibits a P/S ratio of 0.17, which is -86.14% above the industry average. Given its robust revenue growth of -4.14%, this premium appears unsustainable.

P/S

P/E

EV/EBITDA

EV/EBIT

P/S

Revenue Growth

Market Cap

Ollie's Bargain Outlet Holdings Inc

3.09

13.35%

8.11B

Performance Decomposition

Market capitalization of M decreased by 9.58% over the past 1 year. The primary factor behind the change was an increase in P/E Change from 4.99 to 6.53.

The secondary factor is the Revenue Growth, contributed -4.14%to the performance.

Overall, the performance of M in the past 1 year is driven by P/E Change. Which is more unsustainable.

-4.14%

5.00B → 4.79B

Revenue Growth

-36.29%

1.24 → 0.79

Margin Expansion

30.85%

4.99 → 6.53

P/E Change

-9.58%