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Macy`s Inc – Department Stores (except Discount Department Stores)
Macy's, Inc. is one of the nation's premier omni-channel fashion retailers. The company comprises three retail brands, Macy's, Bloomingdale's and Bluemercury. Macy's, Inc. is headquartered in New York, New York.
Analysis Results
Intrinsic Value $36.86
Latest Price $15.67
Relative Value 57% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -6.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -6.3%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2023 1.13 1.03
2024 1.06 0.874
2025 0.992 0.744
2026 0.929 0.633
2027 0.871 0.539
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11.0 billion. This corresponds to a present value of 6.17 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.82 billion. Adding in the terminal value gives a total present value of 9.99 billion.

There are presently 271.0 million outstanding shares, so the intrinsic value per share is 36.86.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,758,000,000
Current Cash 1,712,000,000
Current Liabilities 5,416,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -370,000,000
Change in NCWC 30,000,000
EBIT 2,289,000,000
Tax Provision 436,000,000
Depreciation and Amortization 874,000,000
Capital Expenditure -597,000,000
Unlevered Free Cash Flow 2,061,163,987
Current Assets 6,184,000,000
Current Cash 1,679,000,000
Current Liabilities 5,357,000,000
Current Debt 452,000,000
Non-Cash Working Capital (NCWC) -400,000,000
Change in NCWC -1,314,000,000
EBIT -956,000,000
Tax Provision -846,000,000
Depreciation and Amortization 959,000,000
Capital Expenditure -466,000,000
Unlevered Free Cash Flow -1,777,000,000
Current Assets 6,810,000,000
Current Cash 685,000,000
Current Liabilities 5,750,000,000
Current Debt 539,000,000
Non-Cash Working Capital (NCWC) 914,000,000
Change in NCWC -180,000,000
EBIT 1,162,000,000
Tax Provision 164,000,000
Depreciation and Amortization 981,000,000
Capital Expenditure -1,157,000,000
Unlevered Free Cash Flow 544,230,769
Current Assets 7,445,000,000
Current Cash 1,162,000,000
Current Liabilities 5,232,000,000
Current Debt 43,000,000
Non-Cash Working Capital (NCWC) 1,094,000,000
Change in NCWC 158,000,000
EBIT 1,485,000,000
Tax Provision 322,000,000
Depreciation and Amortization 962,000,000
Capital Expenditure -932,000,000
Unlevered Free Cash Flow 1,336,260,563
Current Assets 7,444,000,000
Current Cash 1,455,000,000
Current Liabilities 5,075,000,000
Current Debt 22,000,000
Non-Cash Working Capital (NCWC) 936,000,000
Change in NCWC -55,000,000
EBIT 1,554,000,000
Tax Provision -29,000,000
Depreciation and Amortization 991,000,000
Capital Expenditure -760,000,000
Unlevered Free Cash Flow 1,730,000,000
Current Assets 7,626,000,000
Current Cash 1,297,000,000
Current Liabilities 5,647,000,000
Current Debt 309,000,000
Non-Cash Working Capital (NCWC) 991,000,000
Change in NCWC -466,000,000
EBIT 1,892,000,000
Tax Provision 341,000,000
Depreciation and Amortization 1,058,000,000
Capital Expenditure -912,000,000
Unlevered Free Cash Flow 894,298,319
Current Assets 7,652,000,000
Current Cash 1,109,000,000
Current Liabilities 5,728,000,000
Current Debt 642,000,000
Non-Cash Working Capital (NCWC) 1,457,000,000
Change in NCWC 484,000,000
EBIT 2,327,000,000
Tax Provision 608,000,000
Depreciation and Amortization 1,061,000,000
Capital Expenditure -1,113,000,000
Unlevered Free Cash Flow 1,915,843,861
Current Assets 8,679,000,000
Current Cash 2,246,000,000
Current Liabilities 5,536,000,000
Current Debt 76,000,000
Non-Cash Working Capital (NCWC) 973,000,000
Change in NCWC -179,000,000
EBIT 2,887,000,000
Tax Provision 864,000,000
Depreciation and Amortization 1,036,000,000
Capital Expenditure -472,000,000
Unlevered Free Cash Flow 2,228,331,380
Current Assets 8,688,000,000
Current Cash 2,273,000,000
Current Liabilities 5,726,000,000
Current Debt 463,000,000
Non-Cash Working Capital (NCWC) 1,152,000,000
Change in NCWC 63,000,000
EBIT 2,766,000,000
Tax Provision 804,000,000
Depreciation and Amortization 1,020,000,000
Capital Expenditure -863,000,000
Unlevered Free Cash Flow 2,014,880,349
Current Assets 7,876,000,000
Current Cash 1,836,000,000
Current Liabilities 5,075,000,000
Current Debt 124,000,000
Non-Cash Working Capital (NCWC) 1,089,000,000
Change in NCWC 299,000,000
EBIT 2,666,000,000
Tax Provision 767,000,000
Depreciation and Amortization 1,049,000,000
Capital Expenditure -942,000,000
Unlevered Free Cash Flow 2,099,201,712

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