Valuation Overview

Growth Story

Over the next few years, revenue is expected to grow by 2.67%, higher than industry average of 1.94%.

Growth Trajectory

Profitability

In the growth phase company makes 4.48% profit on every dollar of sales, lower than industry average of 5.92%.

Profitability Trajectory

Risk Profile

Investors expect at least 10.07% return to justify the risk of holding stock.

Risk vs Return

Required Return (Cost of Capital) (%)
Return on Invested Capital (%)

Financial Health Overview

Enterprise Value
8.36B USD
Equity Value
3.63B USD
FCF Yield
136.31%
Average ROIC
8.42%
Cost of Capital
9.61%
P/E Ratio
6.28x
Financial MetricMost Recent 12 months (USD)Previous Year (USD)
Revenues22.80B USD23.87B USD
Operating Income or EBIT1.01B USD1.21B USD
Interest Expense111M USD135M USD
Book Value Of Equity4.45B USD4.04B USD
Book Value Of Debt5.66B USD5.98B USD
Cash and Marketable Securities932M USD1.03B USD
Number of Shares Outstanding277.70M--
Minority interests0 USD0 USD
Current Stock Price17.12 USD--
Effective Tax Rate25.00%--
Marginal Tax Rate25.00%--

Performance vs Industry

Revenue Growth
-6.41%
-4.48%Company
vs
1.93%Industry
Below Industry
Operating Margin
-1.50%
4.42%Company
vs
5.92%Industry
Below Industry
Macy's, Inc. faces challenges in both growth and profitability compared to industry peers, which may indicate competitive pressures or operational inefficiencies.

Terminal Value Analysis

Growth Rate
4.59%
Cost of Capital
8.83%
Return on Capital
8.83%
Reinvestment Rate
52.09%
Terminal value represents 56% of total enterprise value, based on 4.59% perpetual growth and 8.83% discount rate.

Equity Value Breakdown

ComponentValueType
Present Value (Terminal Value) 4.71B USD Add
Present Value (Cash Flow Over Next 10 Years) 3.65B USD Add
Value of Operating Assets 8.36B USD Sub-total
Debt 5.66B USD Subtract
Minority Interests — Subtract
Cash 932.00M USD Add
Value of Equity 3.63B USD Sub-total
Number of Shares 277.70M shares Divisor
Estimated Value per Share (Fair Value) 13.09 USD Total
Current Market Price 17.12 USD Reference

Financial Projections

Total FCF Present Value
3.65B USD
Avg Revenue Growth
2.60%
Avg Operating Margin
4.49%
Avg ROIC
8.42%
Year 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Terminal Year
REVENUE
Revenue22.06B USD22.65B USD23.26B USD23.88B USD24.52B USD25.27B USD26.14B USD27.14B USD28.28B USD29.58B USD30.94B USD
Growth Rate -3.21% 2.67% 2.67% 2.67% 2.67% 3.05% 3.44% 3.82% 4.21% 4.59% 4.59%
PROFITABILITY
Operating Income975.64M USD1.01B USD1.04B USD1.07B USD1.10B USD1.14B USD1.18B USD1.22B USD1.28B USD1.33B USD1.40B USD
Operating Margin 4.42% 4.46% 4.48% 4.50% 4.52% 4.52% 4.52% 4.52% 4.52% 4.52% 4.52%
EBIT (1-tax)731.73M USD758.37M USD782.28M USD806.92M USD832.32M USD857.77M USD887.30M USD921.28M USD960.10M USD1.00B USD1.05B USD
CASH FLOW
Reinvestment181.33M USD186.18M USD191.15M USD196.26M USD230.59M USD242.03M USD278.40M USD318.18M USD361.93M USD378.57M USD547.24M USD
Free Cash Flow550.39M USD572.19M USD591.12M USD610.65M USD601.73M USD615.73M USD608.89M USD603.10M USD598.17M USD625.69M USD503.22M USD
Terminal Value--------------------11.89B USD
Present Value500.03M USD472.28M USD443.27M USD416.02M USD372.44M USD347.02M USD313.18M USD283.74M USD258.00M USD247.97M USD—
EFFICIENCY
ROIC 7.96% 8.09% 8.19% 8.28% 8.37% 8.43% 8.52% 8.61% 8.72% 8.83% 8.83%
Cost of Capital 10.07% 10.07% 10.07% 10.07% 10.07% 9.82% 9.57% 9.32% 9.07% 8.83% 8.83%
Sales/Capital 3.25x 3.25x 3.25x 3.25x 3.25x 3.59x 3.59x 3.59x 3.59x 3.59x —

Profitability & Efficiency

Operating Margin (%)
ROIC (%)

Value Creation Analysis

ROIC (%)
Cost of Capital (%)

Operational Cash Flow Analysis

Free Cash Flow ($M)
Reinvestment ($M)