Macy's, Inc. (M) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+2.7%

$25.07

vs $24.40 price

Levered DCF

$20.41

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

2.85

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	8.45×	7.42×	116.44×	5.39×	5.46×	-1.19×	8.76×	7.31×
P/B	1.11×	0.96×	1.27×	1.55×	2.16×	1.83×	0.77×	1.26×
P/S	0.24×	0.19×	0.21×	0.25×	0.31×	0.26×	0.2×	0.31×
EV / EBITDA	5.1×	4.99×	9.36×	4.76×	4.31×	-3.2×	6.11×	4.48×
Gross margin	36.5%	40.3%	40.4%	39.7%	41.1%	32.1%	40.1%	40.9%
Operating margin	4.6%	4.0%	1.3%	6.6%	9.3%	-24.7%	3.8%	6.8%
Net margin	2.8%	2.5%	0.2%	4.5%	5.6%	-21.8%	2.2%	4.3%
Current ratio	1.49×	1.43×	1.34×	1.2×	1.25×	1.15×	1.18×	1.42×
Debt / equity	1.07×	1.25×	1.48×	1.57×	1.89×	3.26×	1.17×	0.77×
Interest coverage	10.62×	7.9×	2.23×	10.43×	9.07×	-15.48×	4.62×	6.49×
Dividend yield	3.6%	4.4%	3.5%	2.7%	1.2%	2.5%	9.4%	5.7%
Payout ratio	30.7%	33.0%	402.2%	15.1%	6.3%	-3.0%	82.6%	41.8%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	13.2%	12.8%	1.1%	28.1%	39.5%	-154.5%	8.8%	17.2%
Return on invested capital	6.6%	5.8%	2.6%	10.5%	14.3%	-28.2%	4.6%	9.5%
Return on assets	4.0%	3.5%	0.3%	6.8%	8.1%	-22.3%	2.7%	5.8%
Free cash flow yield	19.5%	17.3%	6.1%	5.0%	27.1%	3.9%	9.1%	9.9%
Earnings yield	11.9%	13.3%	0.9%	18.1%	18.3%	-84.3%	11.4%	13.7%
Enterprise value	$9.4B	$8.8B	$10.1B	$11.9B	$12.9B	$11.3B	$11.7B	$11.9B
Net debt / EBITDA	2.15×	2.5×	4.6×	2.22×	1.71×	-1.88×	3.54×	1.42×
Cash conversion cycle (days)	10	51	48	37	31	33	67	69