Hudson’s Bay Co. (TSX:HBC) is one of Canada’s oldest companies and one of the largest retailers out there. The company has stores around the world and owns great real estate assets. The stock has been beaten up badly over the past year as retail stores continue to show weakness in the face of Amazon.com, Inc.

The stock has fallen quite a bit, such that there may be a margin of safety present for investors who seek huge value with their stock selections. While a 31.75 price-to-earnings multiple doesn’t look like a value stock, it actually is very cheap right now with a price-to-book ratio of just one and an absurd price-to-sales ratio of 0.2.

When you look at the price-to-sales and the price-to-book ratio, there’s no question that the stock is dirt cheap right now. If you’re a contrarian investor, you could limit your downside with a terrific pick like Hudson’s Bay.

Hudson’s Bay has a fantastic management team with a proven track record of growth. The management team’s compensation is dependent on the performance of the business, and it’s in the best interest of the managers to keep their shareholders happy.

It’s no mystery that investors have been very pessimistic and fearful of retail stocks like Hudson’s Bay. As Warren Buffett used to say, “… be fearful when others are greedy, and greedy when others are fearful.” We may be at a point where investor pessimism is at its maximum, and if you’re a true contrarian investor with a long-term horizon, now may be the time to pick up shares of Hudson’s Bay while they’re dirt cheap.

Hudson’s Bay owns a considerable amount of real estate, so if a real estate collapse happened, the company would get hit quite hard compared to your typical retailer. However, I believe this risk is already priced into the stock at current levels, and I don’t see Hudson’s Bay getting too much cheaper from here.

Hudson’s Bay is a great Canadian name that will most likely survive this rout in retail stocks, but Amazon will always be there to scare investors out of great retail names like this one. If you’re still a believer in retail stores, then it doesn’t get much better than Hudson’s Bay, and know that the managers are working with you if you’re a shareholder, which is always a great thing.

The five- to seven-year target price on the stock is currently at about $42, which represents an upside of 284%, not including dividends, at current levels. The stock is one of the cheapest out there, and if Hudson’s Bay was on your radar, now is the perfect time to pick up shares and hold on to them while you collect the modest 1.35% dividend yield.

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For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

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Fool contributor Joey Frenette has no position in any stocks mentioned. David Gardner owns shares of Amazon.com. The Motley Fool owns shares of Amazon.com.