Date of Award

Winter 3-31-2019

Document Type

Project (696 or 796 registration)

Degree Name

Master of Science in Accounting & Finance

Department

Graduate Studies

Committee Chair

Eduardo Pablo

Keywords

Recommendations, insider trading, Penney, shareholder analysis, environment

Abstract

Macy’s, Inc. is recognized as one of the nation’s leading Omni channel retailers that operates department stores, websites and mobile applications to sell finished goods. It is the parent company of Macy’s, Bloomingdale’s, and Bluemercury.

In this report, I have examined the past five years and current year’s financial statements – balance sheet, income statements and cash flow statements. A completed ratio analysis has been conducted with these data. Further, I used a discounted cash flow model to forecast future free cash flows. With my projections and valuations, the model estimates Macy’s stock price at USD 45.79 per share almost double from its current value that is at USD 24.03 as of 3/31/2019. Due to this huge discrepancy I have further conducted a relative valuation and also reviewed the insiders trading to get more clarification. This report also includes many qualitative data for Macy’s that would support my result.

The main objectives of conducting this financial analysis and valuation is to provide a recommendation whether to buy Macy’s stock or not.

Creative Commons License

Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.

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