The Gap, Inc.

LSE:0ITS Stock Report

Market Cap: US$9.0b

Gap Valuation

Is 0ITS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of 0ITS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: 0ITS ($24.46) is trading below our estimate of fair value ($34.18)

Significantly Below Fair Value: 0ITS is trading below fair value by more than 20%.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for 0ITS?

Key metric: As 0ITS is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for 0ITS. This is calculated by dividing 0ITS's market cap by their current earnings.
What is 0ITS's PE Ratio?
PE Ratio11x
EarningsUS$823.00m
Market CapUS$9.01b

Price to Earnings Ratio vs Peers

How does 0ITS's PE Ratio compare to its peers?

The above table shows the PE ratio for 0ITS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.7x
BWNG N Brown Group
74.4xn/aUK£185.9m
KGF Kingfisher
13.1x9.5%UK£4.5b
JD. JD Sports Fashion
14.4x23.2%UK£4.9b
FRAS Frasers Group
8.7x13.2%UK£2.7b
0ITS Gap
11x3.8%US$9.0b

Price-To-Earnings vs Peers: 0ITS is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

How does 0ITS's PE Ratio compare vs other companies in the GB Specialty Retail Industry?

1 CompanyPrice / EarningsEstimated GrowthMarket Cap
WRKS TheWorks.co.uk
1.9xn/aUS$15.31m
No more companies available in this PE range
0ITS 11.0xIndustry Avg. 14.3xNo. of Companies4PE01020304050+
1 CompanyEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: 0ITS is good value based on its Price-To-Earnings Ratio (11x) compared to the UK Specialty Retail industry average (14.3x).

Price to Earnings Ratio vs Fair Ratio

What is 0ITS'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.

0ITS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: 0ITS is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

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 0ITS forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$24.46
US$28.59
+16.9%
15.5%US$35.00US$16.00n/a20
Dec ’25US$24.25
US$28.59
+17.9%
15.4%US$35.00US$16.00n/a19
Nov ’25US$20.85
US$27.85
+33.6%
17.4%US$35.00US$14.00n/a19
Oct ’25US$21.16
US$27.85
+31.6%
17.4%US$35.00US$14.00n/a19
Sep ’25US$22.40
US$28.08
+25.4%
17.0%US$35.00US$14.00n/a19
Aug ’25US$23.02
US$28.28
+22.9%
17.1%US$35.00US$13.00n/a19
Jul ’25US$23.32
US$27.47
+17.8%
19.6%US$35.00US$13.00n/a20
Jun ’25US$28.55
US$26.60
-6.8%
23.2%US$35.00US$9.00n/a20
May ’25US$19.99
US$21.63
+8.2%
21.4%US$32.00US$9.00n/a21
Apr ’25US$27.55
US$21.58
-21.7%
21.3%US$32.00US$9.00n/a21
Mar ’25US$19.11
US$19.28
+0.9%
23.7%US$26.00US$8.00n/a20
Feb ’25US$19.40
US$18.45
-4.9%
26.4%US$26.00US$8.00n/a20
Jan ’25US$20.88
US$17.15
-17.9%
24.9%US$25.00US$8.00n/a21
Dec ’24US$21.01
US$16.10
-23.4%
22.8%US$23.50US$8.00US$24.2520
Nov ’24US$12.76
US$12.04
-5.6%
32.2%US$23.50US$6.00US$20.8519
Oct ’24US$10.65
US$11.39
+6.9%
31.7%US$23.50US$6.00US$21.1620
Sep ’24US$11.67
US$11.33
-2.9%
31.9%US$23.50US$6.00US$22.4020
Aug ’24US$10.54
US$11.09
+5.2%
34.3%US$23.50US$6.00US$23.0220
Jul ’24US$8.88
US$10.89
+22.6%
34.9%US$23.50US$6.00US$23.3220
Jun ’24US$7.97
US$11.09
+39.2%
36.1%US$23.50US$6.00US$28.5520
May ’24US$9.65
US$12.17
+26.2%
31.9%US$23.50US$7.00US$19.9919
Apr ’24US$10.03
US$12.29
+22.6%
31.7%US$23.50US$7.00US$27.5518
Mar ’24US$12.62
US$12.83
+1.7%
32.4%US$25.00US$7.00US$19.1119
Feb ’24US$13.51
US$12.62
-6.6%
33.9%US$25.00US$7.00US$19.4019
Jan ’24US$11.32
US$12.93
+14.3%
31.5%US$25.00US$7.00US$20.8819
Dec ’23US$14.42
US$12.51
-13.2%
31.5%US$25.00US$7.00US$21.0119

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 Analysis2024/12/20 02:35
End of Day Share Price 2024/12/20 00:00
Earnings2024/11/02
Annual Earnings2024/02/03

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 here.

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 .

Analyst Sources

The Gap, Inc. is covered by 68 analysts. 19 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
Daniela NedialkovaAtlantic Equities LLP
Jeff BlackAvondale Partners