Macy's Valuation

Is M 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 M when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: M ($19.3) is trading below our estimate of fair value ($34.05)

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


Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

M 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/Revenue0.4x
Enterprise Value/EBITDA5.2x
PEG Ratio2x

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for M vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average20x
OLLI Ollie's Bargain Outlet Holdings
24.2x-6.6%US$4.4b
DDS Dillard's
9x-31.1%US$6.7b
MNSO MINISO Group Holding
21.1x18.5%US$6.6b
ETSY Etsy
25.8x17.4%US$7.9b
M Macy's
50.6x25.6%US$5.3b

Price-To-Earnings vs Peers: M is expensive based on its Price-To-Earnings Ratio (50.6x) compared to the peer average (20x).


Price to Earnings Ratio vs Industry

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

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.5%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a20.5%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: M is expensive based on its Price-To-Earnings Ratio (50.6x) compared to the Global Multiline Retail industry average (20.4x).


Price to Earnings Ratio vs Fair Ratio

What is M'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.

M PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio50.6x
Fair PE Ratio26.1x

Price-To-Earnings vs Fair Ratio: M is expensive based on its Price-To-Earnings Ratio (50.6x) compared to the estimated Fair Price-To-Earnings Ratio (26.1x).


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 M forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$19.30
US$20.34
+5.4%
20.2%US$25.00US$10.00n/a13
Apr ’25US$19.54
US$20.26
+3.7%
20.2%US$25.00US$10.00n/a13
Mar ’25US$18.01
US$20.03
+11.2%
19.1%US$25.00US$10.00n/a13
Feb ’25US$18.44
US$18.07
-2.0%
22.4%US$25.00US$11.00n/a13
Jan ’25US$20.12
US$17.71
-12.0%
22.4%US$25.00US$11.00n/a14
Dec ’24US$17.13
US$15.56
-9.2%
21.0%US$25.00US$11.00n/a14
Nov ’24US$12.06
US$15.60
+29.4%
23.8%US$25.00US$10.00n/a13
Oct ’24US$11.61
US$16.29
+40.3%
24.5%US$25.00US$10.00n/a13
Sep ’24US$12.15
US$16.54
+36.1%
24.5%US$25.00US$10.00n/a13
Aug ’24US$16.33
US$18.88
+15.6%
21.0%US$25.50US$12.00n/a13
Jul ’24US$16.05
US$18.88
+17.7%
21.0%US$25.50US$12.00n/a13
Jun ’24US$13.75
US$21.09
+53.4%
20.4%US$27.00US$12.75n/a12
May ’24US$16.06
US$23.95
+49.1%
18.0%US$29.00US$14.00n/a13
Apr ’24US$17.49
US$23.59
+34.9%
17.8%US$29.00US$14.00US$19.5414
Mar ’24US$20.43
US$23.64
+15.7%
16.4%US$30.00US$14.00US$18.0116
Feb ’24US$24.03
US$23.64
-1.6%
16.6%US$30.00US$14.00US$18.4416
Jan ’24US$20.65
US$24.02
+16.3%
17.3%US$30.00US$14.00US$20.1215
Dec ’23US$23.18
US$24.02
+3.6%
17.3%US$30.00US$14.00US$17.1315
Nov ’23US$20.81
US$22.43
+7.8%
19.8%US$30.00US$13.00US$12.0615
Oct ’23US$15.67
US$22.60
+44.2%
20.1%US$30.00US$13.00US$11.6114
Sep ’23US$17.06
US$23.69
+38.8%
20.6%US$30.00US$13.00US$12.1514
Aug ’23US$17.83
US$26.19
+46.9%
24.9%US$36.00US$13.00US$16.3314
Jul ’23US$17.97
US$26.97
+50.1%
20.8%US$36.00US$15.00US$16.0514
Jun ’23US$23.33
US$27.04
+15.9%
21.0%US$36.00US$15.00US$13.7514
May ’23US$24.17
US$31.25
+29.3%
27.4%US$50.00US$20.00US$16.0614
Apr ’23US$24.24
US$31.25
+28.9%
27.4%US$50.00US$20.00US$17.4914

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


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