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Model Introduction
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1Key Inputs
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Units ($ in millions)
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Company nameMacy's
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TickerM
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SectorConsumer Retail
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LBO date12/1/2023
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Latest 10Q Shares Outstanding274,073,323
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Latest 10K Share Outstanding271,395,080
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Fiscal year end1/28/2023
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Date of latest 10K filing1/28/2023
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Date of latest 10Q filing10/28/2023
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WACC Information
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After tax cost of debt4.84%
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Cost of equity16.40%
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Weighted average cost of capital#REF!
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Exit
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Proposed entry EV/EBITDA5.6 X
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Proposed exit EV/EBITDA5.6 X
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IRR at exitNM
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Cash on cash multiple0 X
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Other assumptions
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Effective tax rate of Macy's as of the latest filing
22.5%
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Use growth or margins?Margins
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Circuit BreakerOff
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Background and operations of Macy's:
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The company's operations are conducted through Macy's, Macy's Backstage, Market by Macy's, Bloomingdale's and
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Bluemercury. Macy's sells a wide range of merchandise, including apparel and accessories, cosmetics, home furnishings
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and other consumer goods. Most of the stores are located in urban or suburban sites, mainlhy in densely populated areas
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in the US. The company's also owns FDS Bank, a wholly owned subsidiary, that provides certain collections, customer
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service and credit marketing services in respect of all credit card accounts that are owned either by Citi or FDS.
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The ratail business is seasonal in nature with a high proportion of sales and operating income generated in th months of
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November and December. Working capital requirements fluctuate during the year, increasing in mid-summer in anticipation
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of the fall merchandising season and increasing prior to the months of November and December.
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Principal private label brands offered by the company include Alfani, And Now This, Aqua, Bar III, Belqique, Charter Club,
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Club Room, Epic Threads, Family PJ's, First Impressions, and Holiday Lane among others.
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Case Manager
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Active CaseBase Case
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Divident RecapCash
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Output:
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Share price as of the LBO $ 15.76
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Additional notes:
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