Macy’s Inc (M) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Macy’s Inc stock $42.74, price $23.08, upside +85.2%, quality 64 out of 100. Rating: strongly undervalued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 8, 2026.
How to read this chart
60‑month range $9.34 – $30.79 · fair‑value band $30.85 – $59.00 · the $23.08 price screens below the $42.74 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). 1 fiscal year is left out: there the valuation rested on only a fraction of the usual models. As of Nov 8, 2026.
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Macy's, Inc., an omni-channel retail organization, operates stores, websites, and mobile applications in the United States.
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The company sells various merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and Bluemercury brands.
It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. Macy's, Inc. was founded in 1830 and is based in New York, New York.
Stock analysis
Macy’s Inc (M) currently trades at $23.08, while our model-based Fair Value estimate is $42.74, implying the stock looks roughly 46% undervalued today.
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Valuation
Bull case: the Multiples group reads highest at a median of $47.94 per share, and 19 of the 24 models we run sit above the $23.08 price.
Bear case: the Dividend Discount group reads lowest at $6.80, and 5 of the 24 models stay below the price. Data coverage for this calculation is high.
Scenario range: $30.85 (bear) to $59.00 (bull), the price of $23.08 sits below it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 64/100 (solid quality), in the Consumer Cyclical sector.
Weak Growth: Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Macy’s Inc reported revenue of $22.6B in FY2026 versus $25.4B in FY2022, a compound −2.9%/yr. Reported net income was $642M in FY2026, compounding −18.1%/yr from FY2022.
Key figures
Market cap $6.4B Mid · P/E ratio 8.5 · P/S ratio 0.28 · EPS (TTM) $2.73 · Dividend yield 3.2% · Net margin 3.3% · Return on equity 16.0% · Return on assets (EBIT) 7.5% (5-year average).
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 37 out of 100 (low confidence).
What moves the price
The share trades about 11% below its 52-week high and 39% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Consumer Cyclical peers we cover trades at 5% fair-value upside, at 85%, M screens cheaper than that median.
Fair Value models
Bear$30.85Fair Value $42.74Bull$59.00
Price $23.08 · Upside +85.2%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($1.53 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
SaleDanielle L. KirganEVP, Chief HR Officer6× since Dec 11, 2025: 125,206 shares, avg. $22.01$2.8MApr 6, 2026
SaleAntony SpringChairman & CEO, Director5× since Mar 25, 2026: 136,575 shares, avg. $17.91$2.4MApr 6, 2026
SaleTracy M PrestonEVP, CLO & Corporate Secretary2× since Mar 30, 2026: 8,007 shares, avg. $17.86$142,993Apr 6, 2026
SaleOlivier BronCEO, Bloomingdale's4× since Dec 8, 2025: 28,491 shares, avg. $19.93$567,877Apr 6, 2026
Plus 2 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.
Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.40/100
Revenue growth is inconsistent: the periods point in different directions, so there is no trend to rely on.
Revenue growth 1 year
−1.7%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−3.9%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+4.6%
Start year 2021 (pandemic). Over 10 years: −1.8% a year
Revenue growth 33 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+3.6%
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What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate.
−2.9%
Earnings growth per share plus dividend.
Earnings per share, growth per year−6.1%
Dividend (yield on the price)3.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.−6.1% vs −3.2%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−25% → 5%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−6.8%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
−0.8%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −9.0% a year for the price and −3.1% for the forecasts.
News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation.Neutral
Recent news coverage is roughly neutral, about typical for how stocks are covered.
AI conclusion: Macy's demonstrates strength through five consecutive quarters of positive comparable sales and stable margins via store optimization, yet its main weakness remains the limited durable moat in a highly competitive department store sector.
Main risk: Low-cost platforms such as Shein and Temu could continue drawing price-sensitive customers away from department stores or force Macy’s to cut prices and margins on apparel and home goods.
Bull case: Macy’s could leverage its AI shopping tools and curated luxury banners to retain higher-value customers and differentiate from pure discounters.
Bear case: Persistent price pressure from fast-fashion and online marketplaces could erode sales volumes and force further store closures or margin compression.
Macy's has posted five consecutive quarters of positive comparable sales alongside stable margins as it narrows its store base to higher-performing locations and lifts its luxury banners. S&P just moved the credit outlook to positive, opening a path to investment-grade status in the next 12 to 18 months if the gains continue. Our models see the shares as undervalued, yet will the operational improvements secure lower borrowing costs or will any slowdown in sales or margin pressure from tariffs keep leverage stuck above target levels?
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Department Stores · 107 stocks
Beats the industry median on 11/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score64 · Top 25%
Fair Value upside+85.2% · Top 25%
Profitability
Return on equity (12 months)16.0% · Top 25%
Return on assets4.0% · Above median
Net margin (12 months)3.3% · Above median
Operating margin (12 months)3.2% · Below median
Growth and dividend
Revenue growth (quarter YoY)1.2% · Above median
Dividend yield (12 months)3.2% · Above median
Balance sheet
Debt / equity0.50× · Highest 25%
Valuation Multiplesvs Department Stores median · lower = cheaper
P/E (12 months)8.5× · Cheapest 25%
P/B1.31× · Pricier than median
P/S (12 months)0.28× · Cheapest 25%
Price / free cash flow (fiscal year)6.0× · Cheaper than median
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Cite: Fair Value Calculator (2026). "Macy’s Inc Fair Value". https://www.fairvalue-calculator.com/stock/M
Frequently asked questions
Is Macy’s Inc (M) overvalued or undervalued?
As of Nov 8, 2026, our model estimates a fair value of $42.74 versus a price of $23.08, about +85% upside (undervalued).
What is the fair value of M?
Our model-based fair value for Macy’s Inc is $42.74 (as of Nov 8, 2026), built from audited fundamentals. The current price: $23.08.
What is the quality score of M?
Macy’s Inc has a Quality Score of 64/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Macy’s Inc (M)?
Our model-based price target is the fair value of $42.74 (as of Nov 8, 2026) from 24 valuation models. Cautious scenario $30.85, optimistic scenario $59.00. It is a calculation from audited fundamentals, not an analyst target.
What is the Macy’s Inc stock forecast for 2026?
Our models put fair value at $42.74, about +85% upside versus a price of $23.08 (undervalued). Cautious scenario $30.85, optimistic scenario $59.00. The calculation is refreshed regularly with new filings.
What is the revenue of Macy’s Inc (M)?
Macy’s Inc reported trailing-twelve-month revenue of about $22.8B (latest available figure, as of Nov 8, 2026).
Does Macy’s Inc pay a dividend?
Macy’s Inc currently shows a dividend yield of 3.24% relative to its recent price (as of Nov 8, 2026).
How much is the dividend of Macy’s Inc (M) and when is the ex-dividend date?
Macy’s Inc pays a dividend of $0.748 per share a year, a dividend yield of 3.2%. The last ex-dividend date was Sep 15, 2026. A dividend has been paid every year since at least 2003. The payout ratio is 27.4% of earnings. Free cash flow covers the dividend 5.41 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into Macy’s Inc (M)?
For today's price to be fair in a discounted-cash-flow model, Macy’s Inc would have to grow free cash flow by -6.8 % per year for five years (discount rate 10.9 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +4.6 % per year. As of Nov 8, 2026.
What discount rate (WACC) does the fair value of M use?
Our models discount Macy’s Inc at 10.9 %: a base by market capitalisation (mid), damped by beta 1.47, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Macy’s Inc that is -6.8 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (10.9 %) and the same formula as our fair value.
How much growth has Macy’s Inc (M) delivered so far?
Over the past 5 years revenue at Macy’s Inc grew +4.6 % a year. The price currently implies free-cash-flow growth of -6.8 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Macy’s Inc (M) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into Macy’s Inc (-6.8 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Macy’s Inc (M)?
The free-cash-flow yield on the price is 16.56 %: that much free cash flow Macy’s Inc produces per unit of market value. When it exceeds the discount rate of our models (10.9 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Macy’s Inc (M)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Macy’s Inc it is $42.74 per share (as of Nov 8, 2026), against a price of $23.08. It is the blended result of 24 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is Macy’s Inc stock overvalued or undervalued in 2026?
As of Nov 8, 2026, M trades below its calculated fair value: price $23.08, fair value $42.74, a gap of about +85% (undervalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of M?
No. The price is what the market pays today ($23.08); the fair value is what the company's own numbers justify ($42.74). For Macy’s Inc the two are $19.66 per share apart. That gap is exactly why we show both numbers side by side.
How much is Macy’s Inc worth?
The market values Macy’s Inc at about $6.4B (market capitalisation, as of Nov 8, 2026). Per share that is $23.08; our models calculate a fair value of $42.74 per share.
What do the bullish and bearish scenarios say about M?
Our models span a range for Macy’s Inc: cautious scenario $30.85, base $42.74, optimistic $59.00 per share (as of Nov 8, 2026, price $23.08). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of M?
Macy’s Inc trades at a price-to-earnings ratio of 8.5 (as of Nov 8, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $42.74 is built from several models across several years. Median P/E at fiscal year-end, 9 fiscal years (2017 to 2026), reported earnings, FY2026 ex one-offs: 7.5. Other multiples: PEG 2.5, P/B 1.3, P/S 0.3, EV/EBITDA 5.4.
What is the PEG ratio of M?
The PEG ratio of Macy’s Inc is 2.54 (P/E divided by earnings growth, as of Nov 8, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of Macy’s Inc (M)?
Balance-sheet figures for Macy’s Inc (as of Nov 8, 2026): return on equity 16.0%, debt of 0.50 per unit of equity. They feed the Quality Score of 64/100, which measures business quality independently of the share price.
How far is M from its 52-week high?
Macy’s Inc trades at $23.08, about 11% below its 52-week high of $25.99 and 39% above the low of $16.65 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $42.74 is for.
Which stocks are comparable to Macy’s Inc?
From the same area (Consumer Cyclical) we also value Falabella S.A, Dillard's, Inc, 99 Speed Mart Retail Holdings, Central Retail Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Macy’s Inc stock attractive at the current price?
The data as of Nov 8, 2026: price $23.08, calculated fair value $42.74 (+85%), Quality Score 64/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of M calculated?
We run Macy’s Inc through 24 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $42.74 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.0% above its aggregate fair value. Macy’s Inc currently trades 46% below its own fair value, and the market average says nothing about that. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Macy’s Inc (M)?
The closing price on Nov 6, 2026 was $23.08. Our model-based fair value is $42.74, about +85% upside (undervalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Macy’s Inc right now?
The price is below even our cautious bear case ($30.85). The market is more pessimistic than our downside scenario. Solid quality (64/100) at a price below fair value, the discount is the argument here, not the business quality. A fairly wide model range ($30.85 to $59.00) leaves room in how you read the outcome.
Where does the earnings growth of Macy’s Inc (M) come from?
Earnings per share at Macy’s Inc grew −8.0 % a year from 2015 to 2026. Broken into its drivers: revenue per share +0.2 %, EBIT margin −9.1 %, tax rate +2.0 %, residual (interest, one-offs) −1.0 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Macy’s Inc
How large is the market capitalisation of Macy’s Inc (M)?
The market capitalisation of Macy’s Inc is $6.4B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Macy’s Inc (M)?
The price-to-sales ratio of Macy’s Inc is 0.28 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Macy’s Inc (M)?
Earnings per share at Macy’s Inc are $2.73 (price ÷ EPS = P/E 8.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Macy’s Inc (M)?
The dividend yield of Macy’s Inc is 3.2% (payout 27.4%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Macy’s Inc (M)?
The net margin of Macy’s Inc is 3.3% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Macy’s Inc (M)?
The return on equity (ROE) of Macy’s Inc is 16.0% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Macy’s Inc (M)?
On an EBIT basis the return on assets of Macy’s Inc is 7.5% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Macy’s Inc (M)?
The operating margin of Macy’s Inc is 3.2% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Macy’s Inc (M)?
Revenue at Macy’s Inc is growing +1.2% versus a year earlier (3y avg −3.9%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Macy’s Inc (M)?
Earnings per share at Macy’s Inc are growing +100% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Macy’s Inc (M) carry?
The net debt of Macy’s Inc is $4.0B (fiscal year 2026, ≈ 3.7 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 8, 2026