The Gap, Inc.

NYSE:GAP Stock Report

Market Cap: US$9.0b

Gap Valuation

Is GAP 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 GAP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GAP ($23.88) is trading below our estimate of fair value ($33.08)

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

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 Ratio10.9x
EarningsUS$823.00m
Market CapUS$8.98b

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 Average22.2x
ANF Abercrombie & Fitch
14.4x5.6%US$7.3b
VSCO Victoria's Secret
21.8x3.6%US$3.4b
URBN Urban Outfitters
15x5.6%US$4.9b
BURL Burlington Stores
37.5x19.2%US$17.7b
GAP Gap
10.9x3.8%US$9.0b

Price-To-Earnings vs Peers: GAP is good value based on its Price-To-Earnings Ratio (10.9x) compared to the peer average (22.2x).

Price to Earnings Ratio vs Industry

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

6 CompaniesPrice / EarningsEstimated GrowthMarket Cap
TKLF Tokyo Lifestyle
1.9xn/aUS$14.65m
SSOK Sunstock
0.8xn/aUS$556.28k
MASN Maison Luxe
0.09xn/aUS$168.03k
CONN.Q Conn's
n/an/aUS$2.49k
GAP 10.9xIndustry Avg. 16.1xNo. of Companies10PE01224364860+
6 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: GAP is good value based on its Price-To-Earnings Ratio (10.9x) compared to the US Specialty Retail industry average (16.1x).

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 Ratio10.9x
Fair PE Ratio17.3x

Price-To-Earnings vs Fair Ratio: GAP is good value based on its Price-To-Earnings Ratio (10.9x) compared to the estimated Fair Price-To-Earnings Ratio (17.3x).

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 GAP forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$23.88
US$28.59
+19.7%
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$20.74
US$27.85
+34.3%
17.4%US$35.00US$14.00n/a19
Oct ’25US$21.08
US$27.85
+32.1%
17.4%US$35.00US$14.00n/a19
Sep ’25US$22.43
US$28.08
+25.2%
17.0%US$35.00US$14.00n/a19
Aug ’25US$23.22
US$28.28
+21.8%
17.1%US$35.00US$13.00n/a19
Jul ’25US$23.27
US$27.47
+18.1%
19.6%US$35.00US$13.00n/a20
Jun ’25US$28.96
US$26.60
-8.2%
23.2%US$35.00US$9.00n/a20
May ’25US$19.83
US$21.63
+9.1%
21.4%US$32.00US$9.00n/a21
Apr ’25US$27.25
US$21.58
-20.8%
21.3%US$32.00US$9.00n/a21
Mar ’25US$19.06
US$19.28
+1.1%
23.7%US$26.00US$8.00n/a20
Feb ’25US$19.34
US$18.45
-4.6%
26.4%US$26.00US$8.00n/a20
Jan ’25US$20.91
US$17.15
-18.0%
24.9%US$25.00US$8.00n/a21
Dec ’24US$21.02
US$16.10
-23.4%
22.8%US$23.50US$8.00US$24.2520
Nov ’24US$12.93
US$12.04
-6.9%
32.2%US$23.50US$6.00US$20.7419
Oct ’24US$10.63
US$11.39
+7.1%
31.7%US$23.50US$6.00US$21.0820
Sep ’24US$11.66
US$11.33
-2.8%
31.9%US$23.50US$6.00US$22.4320
Aug ’24US$10.62
US$11.09
+4.4%
34.3%US$23.50US$6.00US$23.2220
Jul ’24US$8.93
US$10.89
+21.9%
34.9%US$23.50US$6.00US$23.2720
Jun ’24US$8.08
US$11.09
+37.3%
36.1%US$23.50US$6.00US$28.9620
May ’24US$9.13
US$12.17
+33.3%
31.9%US$23.50US$7.00US$19.8319
Apr ’24US$10.04
US$12.29
+22.4%
31.7%US$23.50US$7.00US$27.2518
Mar ’24US$12.57
US$12.83
+2.1%
32.4%US$25.00US$7.00US$19.0619
Feb ’24US$14.16
US$12.62
-10.9%
33.9%US$25.00US$7.00US$19.3419
Jan ’24US$11.28
US$12.93
+14.7%
31.5%US$25.00US$7.00US$20.9119
Dec ’23US$14.41
US$12.51
-13.2%
31.5%US$25.00US$7.00US$21.0219

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 Analysis2024/12/19 22:43
End of Day Share Price 2024/12/19 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