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

By Nick Russo

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 4.19. Kohl's is next with a an EV/EBITDA ratio of 5.24. Macy's ranks third lowest with a an EV/EBITDA ratio of 5.55.

Nordstrom follows with a an EV/EBITDA ratio of 6.58, and JC Penney rounds out the bottom five with a an EV/EBITDA ratio of 13.81.

SmarTrend recommended that its subscribers protect gains by selling shares of JC Penney on September 29th, 2016 by issuing a Downtrend alert when the shares were trading at $9.43. Since that call, shares of JC Penney have fallen 14.0%. 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 macy's Nordstrom JC Penney

Ticker(s): DDS KSS M JWN JCP