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Valuation Report - Macy's

In: Business and Management

Submitted By hemcpa
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| Macy’s Inc. Valuation Report | |

Table of Contents Objective 2 External Sources of Information 2 Company Identification 2 History 3 Executive Management 3 Financial Overview 4 Stock Classes and Ownership 5 Market Data and Analysis 5 Overview of Valuation Approach and Method 7 Valuation Results 9 Appendix A 10 Appendix B 11

Macy’s Valuation Report
Objective
Our objective is to estimate the Free Cash Flow (FCF) value of Macy’s Inc. as of July 24, 2011 (date of valuation). Macy’s Inc. is a C-Corporation organized under the laws of Delaware. It is primarily engaged in the business of premier retail fashion. The standard of value was Free Cash Flow Value, which measures the company’s ability to generate cash after accounting for capital expenditures, which is a fundamental basis for stock pricing. FCF provides a viable indication of Macy’s ability to develop new products, buy back stock, pay dividends, or reduce its debt depending on the amount of cash the company has to expand. Since FCFs indicate the financial health of a company in its current environment, this valuation’s purpose is to determine Macy’s ability to increase stock prices and maximize shareholder wealth.
External Sources of Information
We have used various external sources of economic and industry data to assess the condition of the general economy, trends in the fashion retail industry, and the condition of the securities markets. Among those sources, we used Plunkett Research, Fashion Products, Wikinvest, Yahoo! Finance, Hoovers, Macy’s Inc., SEC filings, Financial Industry Regulatory Authority (FINRA) and Standard and Poor’s. We have consulted macysinc.com for internal documents where we examined various Macy’s proxy statements and annual financial statements including balance sheets, income statements, and cash flow statements. Analyses of these sources…...

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