Is Macy's, Inc. overvalued or undervalued?

As of 28 May 2025, Macy's, Inc. has moved from fair to very attractive in its valuation grade. The company appears undervalued, supported by a P/E ratio of 5, a Price to Book Value of 0.81, and an EV to EBITDA of 3.10. In comparison to peers, Macy's has a more favorable valuation with Wayfair, Inc. showing a P/E of -47.76 and Ollie's Bargain Outlet Holdings, Inc. at 40.14, indicating that Macy's is positioned significantly better in terms of valuation metrics.
Despite recent stock performance lagging behind the S&P 500 over the 3-year and 10-year periods, where Macy's returned 5.39% and 160.50% respectively compared to the S&P 500's 70.41% and 231.64%, its strong dividend yield of 393.21% and robust ROE of 16.14% suggest potential for future growth and value realization.