Nordstrom Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • 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 ($21.34) is trading below our estimate of fair value ($87.74)

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?

Other financial metrics that can be useful for relative valuation.

JWN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA6.4x
PEG Ratio1x

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 Average19.2x
OLLI Ollie's Bargain Outlet Holdings
25.4x9.5%US$4.5b
KSS Kohl's
9.1x8.3%US$2.8b
SVV Savers Value Village
32.2x32.7%US$2.0b
DDS Dillard's
10x-29.9%US$7.1b
JWN Nordstrom
26x25.9%US$3.5b

Price-To-Earnings vs Peers: JWN is expensive based on its Price-To-Earnings Ratio (26x) compared to the peer average (19.2x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.6%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.6%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: JWN is expensive based on its Price-To-Earnings Ratio (26x) compared to the Global Multiline Retail industry average (22.6x).


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 Ratio26x
Fair PE Ratio23.1x

Price-To-Earnings vs Fair Ratio: JWN is expensive based on its Price-To-Earnings Ratio (26x) compared to the estimated Fair Price-To-Earnings Ratio (23.1x).


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$21.34
US$19.32
-9.5%
30.3%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$11.00n/a16
Oct ’24US$14.94
US$19.56
+30.9%
31.6%US$40.00US$11.00n/a16
Sep ’24US$16.07
US$19.63
+22.1%
31.1%US$40.00US$11.00n/a16
Aug ’24US$23.30
US$19.44
-16.6%
31.1%US$40.00US$12.00n/a16
Jul ’24US$20.47
US$19.44
-5.0%
31.1%US$40.00US$12.00n/a16
Jun ’24US$16.02
US$19.38
+20.9%
31.4%US$40.00US$12.00n/a16
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
Oct ’23US$16.73
US$22.50
+34.5%
28.2%US$42.00US$12.00US$14.9418
Sep ’23US$17.49
US$22.33
+27.7%
28.4%US$42.00US$12.00US$16.0718
Aug ’23US$23.74
US$24.64
+3.8%
27.3%US$43.50US$12.00US$23.3018
Jul ’23US$20.76
US$24.66
+18.8%
26.9%US$43.50US$12.00US$20.4716
Jun ’23US$25.60
US$24.66
-3.7%
26.9%US$43.50US$12.00US$16.0216
May ’23US$25.70
US$26.41
+2.7%
24.2%US$43.50US$12.00US$15.2316

Analyst Forecast: Target price is lower than the current share price.


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