Marcin Frąckiewicz

January 24, 2026, 2:09 AM EST. Macy's Inc (M) has seen a short-term share price pullback, falling 10.7% year to date to $20.32, despite a strong 38.7% gain over the past year. A Discounted Cash Flow (DCF) analysis values Macy's at around $28.03 per share, implying the stock trades at a 27.5% discount to intrinsic value. This suggests potential undervaluation, supported by a favorable free cash flow outlook through 2035. Currently, Macy's price-to-earnings (P/E) ratio of 11.33 is well below the Multiline Retail industry average of 20.07, indicating the market might be pricing in slower growth or higher risk. Investors eyeing the department store sector should consider this mix of short-term price volatility alongside longer-term fundamental strength.