Valuation Report - Macy's

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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…show more content…
Although the restructuring resulted in a 4% workforce downsize, Macy’s currently utilizes approximately 166,000 employees. History Macy’s, founded in 1858 by Rowland Hussey Macy, opened as a fancy dry goods store at the corner of 14th Street and 6th Street in New York City. After several failures to launch a retail store, Mr. Macy finally succeeded and decided to adopt Macy’s signature symbol as a red star to highlight the launch of R.H. Macy & Company. Although first day sales totaled $11.06, R.H. Macy & Co ended the year with $90K in revenue. Throughout Macy’s history, it has been known as a pioneer for retail industry firsts such as being the first retailer to promote a woman to an executive position, the first to practice the one-price system guaranteeing the same price for goods to all customers, the first to put prices in advertisements, the first to offer colored towels, and the first to hold a NYC liquor license. Due to its enamored success, Macy’s relocated to Herald Square at the corner of Broadway and 34th Street to become the “World’s largest store” generating over $36 million in sales as early as 1918. In 1924, Macy’s employees organized a Christmas Parade, which has now become the anticipated Macy’s Thanksgiving Day Parade. In 1994, R.H. Macy and Co. was acquired by Federated Department Stores, Inc., thus creating the largest premier department

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