• Return to Headlines

Relatively Low EV/EBITDA Ratio Detected in Shares of Dillard's in the Department Stores Industry (DDS, KSS, JCP, M, JWN)

By Amy Schwartz

Below are the three companies in the Department Stores industry with the lowest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Dillard's ranks lowest with a an EV/EBITDA ratio of 4.03. Kohl's is next with a an EV/EBITDA ratio of 4.82. JC Penney ranks third lowest with a an EV/EBITDA ratio of 5.20.

Macy's follows with a an EV/EBITDA ratio of 5.27, and Nordstrom rounds out the bottom five with a an EV/EBITDA ratio of 6.85.

SmarTrend recommended that its subscribers protect gains by selling shares of Macy's on March 21st, 2017 by issuing a Downtrend alert when the shares were trading at $28.62. Since that call, shares of Macy's have fallen 20.7%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: lowest ev/ebitda ratio dillard's kohl's JC Penney macy's Nordstrom

Ticker(s): DDS KSS JCP M JWN