The Gap, Inc.

DB:GAP Stock Report

Market Cap: €9.2b

Gap Valuation

Is GAP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Future Cash Flow Value

  • Significantly Below Future Cash Flow Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Future Cash Flow Value

What is the Fair Price of GAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Ultimate guide to DCF valuation for stock investing

Learn how to determine fair value like the best investors in the world.

Below Future Cash Flow Value: GAP (€23.59) is trading below our estimate of future cash flow value (€24.12)

Significantly Below Future Cash Flow Value: GAP is trading below future cash flow value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GAP?

Key metric: As GAP is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for GAP. This is calculated by dividing GAP's market cap by their current earnings.
What is GAP's PE Ratio?
PE Ratio12.7x
EarningsUS$851.00m
Market CapUS$10.83b

Price to Earnings Ratio vs Peers

How does GAP's PE Ratio compare to its peers?

The above table shows the PE ratio for GAP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average32.2x
ZAL Zalando
22.7x21.21%€5.5b
AG1 AUTO1 Group
68x32.54%€5.4b
FIE Fielmann Group
19.4x12.40%€3.5b
HBM HORNBACH Baumarkt
18.6xn/a€2.1b
GAP Gap
12.7x4.54%€10.8b

Price-To-Earnings vs Peers: GAP is good value based on its Price-To-Earnings Ratio (12.7x) compared to the peer average (32.2x).

Historical Price to Earnings Ratio

Historical Price to Earnings Ratio compares a stock's price to its earnings over time. Higher ratios indicate that investors are willing to pay more for the stock.

Fetching historical data

Price to Earnings Ratio vs Industry

How does GAP's PE Ratio compare vs other companies in the European Specialty Retail Industry?

4 CompaniesPrice / EarningsEstimated GrowthMarket Cap
GAP 12.7xIndustry Avg. 16.7xNo. of Companies15PE01020304050+
4 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GAP is good value based on its Price-To-Earnings Ratio (12.7x) compared to the European Specialty Retail industry average (16.7x).

Price to Earnings Ratio vs Fair Ratio

What is GAP's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GAP PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio12.7x
Fair PE Ratio13.6x

Price-To-Earnings vs Fair Ratio: GAP is good value based on its Price-To-Earnings Ratio (12.7x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst GAP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
Current€23.59
€25.63
+8.69%
13.57%€34.69€19.12n/a17
Feb ’27€22.69
€25.32
+11.60%
13.57%€34.26€18.89n/a17
Jan ’27€21.86
€24.67
+12.85%
10.45%€30.62€19.22n/a17
Dec ’26€22.87
€23.87
+4.40%
12.12%€31.01€18.26n/a18
Nov ’26€19.97
€21.21
+6.21%
13.89%€27.48€16.31n/a18
Oct ’26€18.03
€20.81
+15.47%
13.23%€27.26€16.18n/a17
Sep ’26€18.64
€20.84
+11.82%
13.02%€27.36€16.24n/a17
Aug ’26€16.95
€22.95
+35.36%
11.44%€28.01€17.24n/a17
Jul ’26€18.44
€22.82
+23.78%
10.08%€27.44€16.89n/a19
Jun ’26€19.80
€23.44
+18.40%
10.49%€28.19€17.35n/a19
May ’26€18.88
€22.83
+20.87%
11.80%€29.11€16.76n/a19
Apr ’26€18.84
€25.97
+37.80%
10.53%€31.49€22.23n/a19
Mar ’26€21.59
€27.42
+27.04%
10.27%€32.78€23.62n/a18
Feb ’26€23.55
€27.63
+17.37%
11.00%€33.36€23.35€22.6919
Jan ’26€23.40
€27.28
+16.57%
15.45%€33.67€15.39€21.8619
Dec ’25€22.74
€27.29
+20.03%
15.37%€33.41€15.27€22.8719
Nov ’25€18.72
€25.01
+33.58%
17.39%€31.43€12.57€19.9719
Oct ’25€19.56
€25.01
+27.87%
17.39%€31.43€12.57€18.0319
Sep ’25€20.60
€25.41
+23.35%
16.99%€31.67€12.67€18.6419
Aug ’25€21.56
€26.12
+21.15%
17.12%€32.32€12.01€16.9519
Jul ’25€21.99
€25.64
+16.58%
19.57%€32.66€12.13€18.4420
Jun ’25€24.88
€24.52
-1.44%
23.17%€32.26€8.30€19.8020
May ’25€19.50
€20.16
+3.43%
21.36%€29.83€8.39€18.8821
Apr ’25€25.50
€19.93
-21.85%
21.27%€29.55€8.31€18.8421
Mar ’25€17.35
€17.77
+2.43%
23.68%€23.96€7.37€21.5920
Feb ’25€17.14
€17.02
-0.68%
26.43%€23.98€7.38€23.5520
€24.53
Fair Value
3.9% undervalued intrinsic discount
17
Number of Analysts

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/02/09 04:59
End of Day Share Price 2026/02/06 00:00
Earnings2025/11/01
Annual Earnings2025/02/01

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

The Gap, Inc. is covered by 48 analysts. 17 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
null nullArgus Research Company
Mark AltschwagerBaird
Adrienne Yih-TennantBarclays