Gap Valuation
| GAP Stock | 27.46 0.22 0.79% |
At this time, the firm appears to be undervalued. Gap retains a regular Real Value of USD29.45 per share. The prevalent price of the firm is USD27.46. Our model calculates the value of Gap from evaluating the firm fundamentals such as Return On Equity of 0.25, current valuation of 13.29 B, and Return On Asset of 0.0606 as well as inspecting its technical indicators and probability of bankruptcy. Key fundamental drivers impacting Gap's valuation include:
Price Book 2.8228 | Enterprise Value | Enterprise Value Ebitda 7.5835 | Price Sales 0.6738 | Forward PE 12.0337 |
Undervalued
Today
Please note that Gap's price fluctuation is very steady at this time. Calculation of the real value of Gap is based on 3 months time horizon. Increasing Gap's time horizon generally increases the accuracy of value calculation and significantly improves the predictive power of the methodology used.
Gap's intrinsic value may or may not be the same as its current market price of 27.46, in which case there is an opportunity to profit from the mispricing, assuming the market price will eventually merge with its intrinsic value. | Historical | Market 27.46 | Real 29.45 | Target 30.3 | Hype 27.41 |
The intrinsic value of Gap's stock can be calculated using various methods such as discounted cash flow analysis, price-to-earnings ratio, or price-to-book ratio. That value may differ from its current market price, which is determined by supply and demand factors such as investor sentiment, market trends, news, and other external factors that may influence Gap's stock price. It is important to note that the real value of any stock may change over time based on changes in the company's performance.
Estimating the potential upside or downside of The Gap helps investors to forecast how Gap stock's addition to their portfolios will impact the overall performance. We also use other valuation drivers to help us estimate the true value of Gap more accurately as focusing exclusively on Gap's fundamentals will not take into account other important factors: Traditionally, analysts and sophisticated investors use multiple methods for valuing a cash-flow-generating entity or its stock. For example, some money managers use Gap's intrinsic value based on its ongoing forecasts of Gap's financial statements. In contrast, other private, professional wealth advisors use a multiplier approach by looking to relative value analysis against Gap's closest peers.
Gap Cash |
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Gap Total Value Analysis
The Gap is currently forecasted to have company total value of 13.29 B with market capitalization of 10.29 B, debt of 5.47 B, and cash on hands of 310 M. Please note that company total value may be misleading and is a subject to accounting gimmicks. We encourage investors to carefully check all of the Gap fundamentals before making security assessment based on enterprise value of the company| Takeover Price | Market Cap | Debt Obligations | Cash |
13.29 B | 10.29 B | 5.47 B | 310 M |
Gap Investor Information
About 40.0% of the company shares are held by company insiders. The book value of Gap was currently reported as 9.8. The company has Price/Earnings To Growth (PEG) ratio of 1.64. Gap last dividend was issued on the 7th of January 2026. The entity had 3:2 split on the 22nd of June 1999. Based on the analysis of Gap's profitability, liquidity, and operating efficiency, The Gap may be sliding down financialy. It has an above-average risk of going through some form of financial straits next quarter.| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Total Cash From Operating Activities | 1.4 B | 1.7 B |
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Gap Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Gap has an asset utilization ratio of 126.93 percent. This connotes that the Company is making USD1.27 for each dollar of assets. An increasing asset utilization means that The Gap is more efficient with each dollar of assets it utilizes for everyday operations.Gap Profitability Analysis
Considering Gap's profitability and operating efficiency indicators, The Gap is yielding more profit at the moment then in previous quarter. It has a moderate risk of reporting better profitability numbers in March. Profitability indicators assess Gap's ability to earn profits and add value for shareholders.Net Income | First Reported 1985-10-31 | Previous Quarter 216 M | Current Value 236 M | Quarterly Volatility 151.6 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Gross Profit Margin | 0.43 | 0.47 |
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For Gap profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Gap to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Gap utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Gap's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Gap over time as well as its relative position and ranking within its peers.
Gap Earnings per Share Projection vs Actual
The next projected EPS of Gap is estimated to be 0.38 with future projections ranging from a low of 0.53 to a high of 0.5475. Gap's most recent 12-month trailing earnings per share (EPS TTM) is at 2.22. Please be aware that the consensus of earnings estimates for The Gap is based on EPS before non-recurring items and includes expenses related to employee stock options.Gap Earnings Estimation Breakdown
The calculation of Gap's earning per share is based on the data from the past 12 consecutive months, used for reporting the company's financial figures. The next projected EPS of Gap is estimated to be 0.38 with the future projection ranging from a low of 0.53 to a high of 0.5475. Please be aware that this consensus of annual earnings estimates for The Gap is based on EPS before non-recurring items and includes expenses related to employee stock options.Last Reported EPS
0.53 Lowest | Expected EPS | 0.55 Highest |
Gap Earnings Projection Consensus
Suppose the current estimates of Gap's value are higher than the current market price of the Gap stock. In this case, investors may conclude that Gap is overpriced and will exhibit bullish sentiment. On the other hand, if the present value is lower than the stock price, analysts may conclude that the market undervalues the equity. These scenarios may suggest that the market is not as efficient as it should be at the estimation time, and Gap's stock will quickly adjusts to the new information provided by the consensus estimate.
| Number of Analysts | Historical Accuracy | Last Reported EPS | Estimated EPS for 31st of January 2026 | Current EPS (TTM) | |
| 19 | 85.64% | 0.62 | 0.38 | 2.22 |
Gap Ownership Allocation
The Gap has a total of 371.92 Million outstanding shares. Over half of Gap's outstanding shares are owned by outside corporations. These outside corporations are typically referred to as corporate investors that purchase positions in a given instrument to benefit from reduced trade commissions. Also note that around nine million five hundred fifty-eight thousand three hundred eighty-nine invesors are currently shorting Gap expressing very little confidence in its future performance.Gap Profitability Analysis
The company reported the last year's revenue of 15.09 B. Total Income to common stockholders was 844 M with profit before taxes, overhead, and interest of 6.27 B.Gap Past Distributions to stockholders
About Gap Valuation
The stock valuation mechanism determines Gap's current worth on a daily basis. In general, an absolute valuation approach attempts to find the value of Gap based exclusively on its fundamental and basic technical indicators. As compared to an absolute model, our relative valuation model uses a comparative analysis of Gap. We calculate exposure to Gap's market risk, different technical and fundamental indicators, and relevant financial multiples and ratios and then compare them to those of Gap's related companies.| Last Reported | Projected for Next Year | ||
| Gross Profit | 7.2 B | 4.6 B | |
| Pretax Profit Margin | 0.09 | 0.11 | |
| Operating Profit Margin | 0.08 | 0.11 | |
| Net Profit Margin | 0.06 | 0.06 | |
| Gross Profit Margin | 0.47 | 0.43 |
Gap Quarterly Retained Earnings |
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A single share of Gap represents a small ownership stake in the entity. As a stockholder of Gap, your percentage of company ownership is determined by dividing the number of shares you own by the total number of shares outstanding and then multiplying that amount by 100. Owning stock in a company generally confers both corporate voting rights and income from any dividends paid to the stock owner.
Gap Dividends Analysis For Valuation
As of 02/12/2026, Dividend Payout Ratio is likely to grow to 0.25, while Dividends Paid is likely to drop slightly above 197.7 M. . At this time, Gap's Retained Earnings are relatively stable compared to the past year. As of 02/12/2026, Price Earnings Ratio is likely to grow to 10.13, while Earnings Yield is likely to drop 0.04.
| Last Reported | Projected for Next Year | ||
| Dividends Paid | 258.8 M | 197.7 M | |
| Dividend Yield | 0.02 | 0.01 | |
| Dividend Payout Ratio | 0.24 | 0.25 | |
| Dividend Paid And Capex Coverage Ratio | 2.54 | 2.02 |
There are various types of dividends Gap can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Gap shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from The Gap directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Gap pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Gap by the value of the dividends paid out.
Gap Growth Indicators
Investing in growth stocks can be very risky. If the company such as Gap does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
| Common Stock Shares Outstanding | 384 M | |
| Quarterly Earnings Growth Y O Y | -0.139 | |
| Forward Price Earnings | 12.0337 |
Gap Current Valuation Indicators
Gap's valuation analysis is a process of estimating the intrinsic value of all assets and outstanding equities. There are different methodologies and models we use to develop the final Gap's valuation. The techniques such as discounted cash flow and fundamental indicators such as book value per share or market capitalization are well known and widely used across most financial advisers and money managers.
Valuations are an essential part of business, for companies themselves, but also for investors. For companies, such as Gap, valuations can help measure their progress and success and can help them track their performance in the market compared to others. In addition, investors can use Gap's valuations to help determine the worth of potential investments. They can do this by using data and information made public by a company. Regardless of who the valuation is for, it essentially describes Gap's worth.Additional Tools for Gap Stock Analysis
When running Gap's price analysis, check to measure Gap's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Gap is operating at the current time. Most of Gap's value examination focuses on studying past and present price action to predict the probability of Gap's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Gap's price. Additionally, you may evaluate how the addition of Gap to your portfolios can decrease your overall portfolio volatility.