Nordstrom, Inc.

NYSE:JWN Stock Report

Market Cap: US$3.7b

Nordstrom Valuation

Is JWN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of JWN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: JWN ($22.25) is trading below our estimate of fair value ($67.89)

Significantly Below Fair Value: JWN is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for JWN?

Key metric: As JWN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for JWN. This is calculated by dividing JWN's market cap by their current earnings.
What is JWN's PE Ratio?
PE Ratio12.9x
EarningsUS$284.00m
Market CapUS$3.72b

Price to Earnings Ratio vs Peers

How does JWN's PE Ratio compare to its peers?

The above table shows the PE ratio for JWN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20.3x
M Macy's
21.9x17.7%US$4.2b
ETSY Etsy
22.3x11.5%US$5.7b
OLLI Ollie's Bargain Outlet Holdings
26.4x8.3%US$5.5b
DDS Dillard's
10.6x-31.4%US$6.8b
JWN Nordstrom
12.9x19.2%US$3.7b

Price-To-Earnings vs Peers: JWN is good value based on its Price-To-Earnings Ratio (12.9x) compared to the peer average (20.3x).

Price to Earnings Ratio vs Industry

How does JWN's PE Ratio compare vs other companies in the North American Multiline Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
JWN 12.9xIndustry Avg. 19.9xNo. of Companies3PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: JWN is good value based on its Price-To-Earnings Ratio (12.9x) compared to the Global Multiline Retail industry average (19.9x).

Price to Earnings Ratio vs Fair Ratio

What is JWN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

JWN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.9x
Fair PE Ratio18x

Price-To-Earnings vs Fair Ratio: JWN is good value based on its Price-To-Earnings Ratio (12.9x) compared to the estimated Fair Price-To-Earnings Ratio (18x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst JWN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$22.25
US$22.32
+0.3%
23.2%US$38.50US$13.00n/a15
Nov ’25US$22.56
US$22.19
-1.7%
23.5%US$38.50US$13.00n/a15
Oct ’25US$21.70
US$22.19
+2.2%
23.5%US$38.50US$13.00n/a15
Sep ’25US$22.34
US$21.85
-2.2%
24.3%US$38.50US$13.00n/a15
Aug ’25US$22.30
US$20.25
-9.2%
27.6%US$38.50US$12.00n/a15
Jul ’25US$21.25
US$19.99
-6.0%
27.8%US$38.50US$12.00n/a15
Jun ’25US$22.10
US$19.99
-9.6%
27.8%US$38.50US$12.00n/a15
May ’25US$18.81
US$19.49
+3.6%
30.0%US$38.50US$12.00n/a16
Apr ’25US$20.16
US$19.16
-5.0%
31.6%US$38.50US$12.00n/a16
Mar ’25US$20.72
US$17.94
-13.4%
34.8%US$40.00US$12.00n/a16
Feb ’25US$18.26
US$17.25
-5.5%
36.4%US$40.00US$12.00n/a16
Jan ’25US$18.45
US$17.24
-6.6%
35.4%US$40.00US$12.00n/a17
Dec ’24US$16.19
US$17.24
+6.5%
35.4%US$40.00US$12.00n/a17
Nov ’24US$14.08
US$19.00
+34.9%
33.0%US$40.00US$11.00US$22.5616
Oct ’24US$14.94
US$19.56
+30.9%
31.6%US$40.00US$11.00US$21.7016
Sep ’24US$16.07
US$19.63
+22.1%
31.1%US$40.00US$11.00US$22.3416
Aug ’24US$23.30
US$19.44
-16.6%
31.1%US$40.00US$12.00US$22.3016
Jul ’24US$20.47
US$19.44
-5.0%
31.1%US$40.00US$12.00US$21.2516
Jun ’24US$16.02
US$19.38
+20.9%
31.4%US$40.00US$12.00US$22.1016
May ’24US$15.23
US$19.75
+29.7%
30.4%US$40.00US$12.00US$18.8116
Apr ’24US$16.27
US$19.75
+21.4%
30.4%US$40.00US$12.00US$20.1616
Mar ’24US$19.00
US$19.39
+2.0%
29.9%US$40.00US$12.00US$20.7218
Feb ’24US$19.97
US$18.74
-6.2%
30.8%US$40.00US$12.00US$18.2619
Jan ’24US$16.14
US$21.89
+35.6%
29.6%US$42.00US$12.00US$18.4518
Dec ’23US$20.00
US$22.11
+10.6%
28.7%US$42.00US$12.00US$16.1918
Nov ’23US$19.81
US$22.28
+12.5%
28.5%US$42.00US$12.00US$14.0818

Analyst Forecast: Target price is less than 20% higher than the current share price.

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