Macys Current Valuation vs. Price to Book Fundamental AnalysisMacys is rated below average in price to book category among related companies. It is rated below average in current valuation category among related companies reporting about 8,151,041,667 of Current Valuation per Price to Book. Price to Book (P/B) ratio is used to relate a company book value to its current market price. A high P/B ratio indicates that investors expect executives to generate more returns on their investments from a given set of assets. Book value is accounting value of assets minus liabilities.
Price to Book ratio is mostly used in financial services industries where assets and liabilities are typically represented by dollars. Although low Price to Book ratio generally implies that the firm is undervalued, it is often a good indicator that the company may be in financial or managerial distress and should be investigated more carefully.Enterprise Value is a firm valuation proxy that approximates current market value of a company. It is typically used to determine takeover or merger price of a firm. Unlike Market Cap, this measure takes into account the entire liquid asset, outstanding debt, and exotic equity instruments that company has on its balance sheet. When takeover occurs, the parent company will have to assume the target company's liabilities but will take possession of all cash and cash equivalents.
Enterprise Value can be a useful tool to compare companies with different capital structures. Long term liability and current cash or cash equivalents can have a huge impact on market valuation of a given company.Macys is rated below average in current valuation category among related companies. After adjusting for long-term liabilities, total market size of Diversified Wholesale And Retail industry is now estimated at about 223.61 Billion. Macys holds roughly 15.65 Billion in current valuation claiming about 7% of equities under Diversified Wholesale And Retail industry.