Macy's (Comparative Multiple Analysis)

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Link to services page Summary | Profile | SWOT | Cash Flow | Comps | Buffett | WACC Improve your investment analysis with by seeing the Macy's's Discounted Cash Flow analysis, Macy's's Warren Buffet analysis, and Macy's's Weighted Average Cost of Capital (WACC) Analysis. Notes on the Comparative Multiple Analysis of Macy's WikiWealth compares Macy's's revenue, EBITDA, and EBIT multiples to their peers in order to determine the appropriate fair valuation. Click in the top right corner to experiment with Macy's's comparative analysis. Notes from the analysis: 1. WikiWealth uses quantitative measures to determine the multiple range for Macy's. 2. Free cash flow to the firm (FCF) multiple is free cash flow to equity holders plus interest owed to Macy's's debt holders. 3. Multiples incorporate benefits due to economies of scale; WikiWealth compares absolute enterprise value multiples to competitor's multiples. 4. WikiWealth excludes outliers when calculating individual company multiples. Helpful Information for Macy's's Analysis How does this work? The Comparative Investment Analysis determines the value of Macy's by comparing Macy's financial ratios, prices, growth rates, margins, etc. to those of relevant peer groups. Value Investing Importance? This method is widely used by investment professionals to determine the correct price of investments, especially initial public offerings (IPOs). It is one element of WikiWealth's three Wall Street approaches used to determine the correct fair value of Macy's. See the Macy's cash flow (DCF) analysis for a completely different approach that's popular on Wall Street for determining the value of an investment in Macy's. Also, see the Macy's's buffett intrinsic valuation analysis for WikiWealth's attempt to replicate the investing formula's used by Warren Buffett and Macy's's valuation conclusion for a quick summary.