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Is Macy's Inc (M) Stock Trading Below Fair Value?

Friday, July 01, 2022 01:44 PM | InvestorsObserver Analysts
Is Macy's Inc (M) Stock Trading Below Fair Value?

InvestorsObserver gives Macy's Inc (M) a weak valuation score of 27 from its analysis. The proprietary scoring system considers the underlying health of a company by analyzing its stock price, earnings, and growth rate. M currently holds a better value than 27% of stocks based on these metrics. Long term investors focused on buying-and-holding should find the valuation ranking system most relevant when making investment decisions.

Valuation Rank - 27
M gets a 27 Valuation Rank today. Find out what this means to you and get the rest of the rankings on M!

Metrics Analysis

M has a trailing twelve month Price to Earnings (PE) ratio of 3.5 which places it below the histroical average of roughly 15. M is currently trading at a good value due to investors paying less than what the stock is worth in relation to its earnings. M's trailing-12-month earnings per share (EPS) of 5.20 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
M has a 12 month forward PE to Growth (PEG) ratio of 0.35. Markets are overvaluing M in relation to its projected growth as its PEG ratio is currently above the fair market value of 1. 5.1999998's PEG comes from its forward price to earnings ratio being divided by its growth rate. PEG ratios are one of the most used valuation metrics due to its incorporation of more company fundamentals metrics and a focus on the firm's future rather than its past.

Summary

M' has a strong valuation at its current share price on account of a undervalued PEG ratio due to strong growth. M's PE and PEG are better than the market average leading to a above average valuation score. Click Here to get the full Report on Macy's Inc (M) stock.

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