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The Gap, Inc. (GAP) fair value: what the stock is really worth

As of Nov 6, 2026: fair value (intrinsic value) of The Gap, Inc. stock $20.67, price $21.48, that is 3.8% below the price, quality 60 out of 100. Rating: fairly valued. Calculated from audited financials with 24 of our 26 valuation models and 37 quality factors, updated daily.

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Consumer Cyclical US

TG The Gap, Inc. logo Some data Nov 9, 2026

The Gap, Inc.

GAP · US
Fairly valued, in an uptrend

The stock costs about what our calculation considers fair.

Quality 60/100
Low debt
Generates free cash flow
3.2% dividend yield · Well covered
Ranks above peers (10/15)
Positive coverage
Costs just 6.5 times its yearly profit.
Fair value $20.67 · Fairly valued
Mixed Growth (revenue 5y +2.2 %/yr in USD)
Thin margins · 8.1% net margin (TTM)
Moderate moat 56/100 · thin data
Insiders sold $24.2M (6M)
Some data

Risks from the AI analysis

🚩Ultra-fast fashion rivals like Shein and Temu🚩Overseas supply chain and tariff exposure
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What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

Price vs Fair Value

$28.66 $6.64 Fair Value $20.67 Aug 2021 Nov 2026

White line = price, green steps = our fair value per fiscal year. As of Nov 9, 2026.

How to read this chart

60‑month range $6.64 – $28.66 · fair‑value band $14.55 – $27.65 · the $21.48 price screens above the $20.67 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 9, 2026.

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Company profile

The Gap, Inc. operates as an apparel retail company in the United States, Canada, Japan, Taiwan, and internationally. The company offers apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, and Athleta brands.

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The company offers its products through company-operated stores, franchise stores, websites, and third-party arrangements, as well as licensing partnerships. It has franchise agreements to operate Old Navy, Gap, Banana Republic, and Athleta in Asia, Europe, Latin America, the Middle East, and Africa.

The Gap, Inc. was incorporated in 1969 and is headquartered in San Francisco, California.

Stock analysis

The Gap, Inc. (GAP) currently trades at $21.48, while our model-based Fair Value estimate is $20.67, so the stock looks roughly fairly valued today (gap 3.9%).

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Valuation

Bull case: the Multiples group reads highest at a median of $43.00 per share, and 20 of the 24 models we run sit above the $21.48 price.

Bear case: the Dividend Discount group reads lowest at $6.68, and 4 of the 24 models stay below the price. Data coverage for this calculation is medium.

Scenario range: $14.55 (bear) to $27.65 (bull), the price of $21.48 sits inside it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.

Quality & growth

The Quality Score stands at 60/100 (solid quality), in the Consumer Cyclical sector.

Mixed Growth: Revenue is growing, but margins or cash flow do not fully confirm the trend.

The Gap, Inc. reported revenue of $15.4B in FY2026 versus $16.7B in FY2022, a compound −2.0%/yr. Reported net income was $816M in FY2026, compounding +33.6%/yr from FY2022.

Key figures

Market cap $8.2B Mid · P/E ratio 6.5 · P/S ratio 0.54 · EPS (TTM) $3.32 · Dividend yield 3.2% · Net margin 8.1% · Return on equity 33.8% · Return on assets (EBIT) 5.8% (5-year average).

Competitive moat

Our AI-assisted moat analysis scores the competitive advantage at 56 out of 100 (low confidence).

What moves the price

The share trades about 25% below its 52-week high and 17% above its 52-week low, currently below its 200-day average.

For context, the median of 10 Consumer Cyclical peers we cover trades at −18% fair-value upside, at −4%, GAP screens cheaper than that median.

Fair Value models

Bear $14.55 Fair Value $20.67 Bull $27.65
Price $21.48 · Downside -3.8%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 9 months old). Earnings retained since then ($2.04 per share) are deliberately not added. Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds. Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Best data coverage
FCF DCF $22.06 $27.32 $33.36 82
Growth DCF $22.36 $27.20 $32.54 80
Owner Earnings $22.06 $27.32 $33.36 78
All 24 models by family
DCF Models
FCF DCF $22.06 $27.32 $33.36 82
Owner Earnings $22.06 $27.32 $33.36 78
5Y Revenue Exit $26.46 $38.06 $52.22 73
5Y EBITDA Exit $31.39 $46.66 $63.50 75
5Y P/E Exit $29.98 $44.21 $58.13 71
10Y Revenue Exit $23.65 $32.59 $43.28 67
10Y EBITDA Exit $26.92 $37.58 $50.28 69
10Y P/E Exit $26.16 $36.16 $46.95 65
Earnings-Based
Graham-Dodd $15.80 $32.84 $41.52 66
EPV $19.85 $21.90 $23.58 74
Dividend Discount
Gordon GGM $5.01 $6.78 $8.31 69
DDM Multi-Stage $5.01 $6.58 $8.07 67
Multiples
P/E Multiple $38.33 $51.11 $63.88 63
P/S Multiple $29.62 $39.49 $49.36 58
P/B Multiple $22.74 $30.32 $37.90 55
EV/EBIT $34.33 $48.61 $62.89 65
EV/EBITDA $32.75 $46.51 $60.27 67
EV/Revenue $20.36 $32.74 $45.12 53
Asset-Based
NCAV (Graham) $5.03 $6.74 $10.06 54
Growth DCF
Growth DCF $22.36 $27.20 $32.54 80
Rev-Margin DCF $26.46 $38.35 $50.76 73
Economic Profit
Residual Income $11.80 $14.37 $19.23 76
ROIC Compounder $20.23 $22.81 $25.22 72
Growth Earnings
Growth-Adj P/E $27.99 $39.98 $51.98 67

The fair value above starts from this blend and is adjusted for a year distorted by one-off effects.

Open the full fair value analysis →

Quality Score breakdown

Overall quality 60/100

It rates the business: profits, how they develop, real cash, balance sheet, investing and share count.

Profitability 68
How much profit the company makes from its sales and capital
Quality Growth 36
Are margins and returns getting better?
Cashflow 48
Do the profits arrive as real cash?
Financial strength 71
Debt, balance sheet and risk of trouble
Investment 60
Does it invest with discipline instead of growing at any price?
Low Volatility 14
How calm the share price moves, does not count
Price momentum 38
Price momentum of the last 3 to 12 months, does not count
Near the 52-week high 28
Distance to the 52-week high, does not count
New shares 74
Buys back shares or issues new ones?

Open the full quality analysis →

Insider trades

In the last 6 months, 2 officers or directors sold shares worth $24.2M and none bought.

  • SaleWilliam Sydney FisherDirector, 10% owner4× since Dec 3, 2025: 1,500,000 shares, avg. $24.73$37.1MOct 6, 2026
  • SaleJulie GruberChief Legal&Compliance Officer5× since Nov 25, 2025: 199,130 shares, avg. $25.50$5.1MOct 6, 202610b5-1 plan
  • SaleEric Kayen ChanChief Business & Strat Officer13,377 shares at $26.19$350,302Apr 10, 2026
  • SaleJohn J Fisher10% owner3× since Nov 26, 2025: 553,971 shares, avg. $26.47$14.7MApr 8, 2026
  • SaleAmanda J ThompsonChief People Officer25,000 shares at $25.14$628,500Apr 6, 2026
  • SaleSarah GilliganChief Sup Chn & Transform Ofcr69,912 shares at $25.00$1.7MMar 23, 202610b5-1 plan
  • SaleHoracio BarbeitoPresident & CEO, Old Navy113,684 shares at $24.01$2.7MMar 20, 202610b5-1 plan
  • SaleMark BreitbardPresident & CEO, Gap Brand4× since Mar 16, 2026: 155,570 shares, avg. $23.82$3.7MMar 19, 202610b5-1 plan
  • SaleKatrina O'ConnellChief Financial Officer4× since Mar 16, 2026: 189,438 shares, avg. $23.85$4.5MMar 19, 202610b5-1 plan
  • SaleRobert J FisherDirector, 10% owner500,000 shares at $27.45$13.7MDec 1, 2025

Plus 1 more entries from the last 12 months.

Plus 14 other filings such as grants, option exercises or tax withholding. They are not market purchases or sales.

Sales are often planned (taxes, diversification, 10b5-1 plans). Purchases with their own money are seen as the stronger sign. For information only: not part of the quality score or Fair Value.

Source: SEC Form 4, as of Nov 6, 2026. All filings at the SEC ↗

Revenue & earnings trend

Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card. 54/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Revenue growth 1 year
+1.9%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
−0.5%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+2.2%
Start year 2021 (pandemic). Over 10 years: −0.3% a year
Revenue growth 40 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+8.2%
What shareholders gained per year (last 5 years) ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Basis: adjusted.
≈ +26.7%
Earnings growth per share plus dividend.
Earnings per share, growth per year≈ +23.5%
Dividend (yield on the price)3.2%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.base effect: 21.6% / −0.5%
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.−6% → 7%
⚠ Base effect: the rate starts in the earnings trough around 2021 (starting value 0.93 per share, median 2.12 in 2016 to 2019). It measures the recovery from the trough, not lasting growth.

Growth Forecast

Little optimism in the price
The price assumes less growth than the company has delivered so far and less than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
−1.9%
The company could shrink this much every year for the next five years and today's price would still be justified.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+2.4%
Yearly sales growth analysts expect, extended to five years.
After inflation (USA: IMF forecast 2.4% a year to 2030, 3.1% from 2016 to 2025) that is about −4.2% a year for the price and 0.0% for the forecasts.
Forecast 2027 (sales)+1.1%
Forecast 2028 (sales)+2.8%
Projected 2029 (sales)+2.7%
Projected 2030 (sales)+2.6%
Projected 2031 (sales)+2.5%

Watch GAP, get fair value alerts →

Earlier news

News mood ⓘNews mood, the average tone of recent news (100 articles), rated against how stocks are usually covered. 🚀 Hype = unusually upbeat · 🙂 Positive = above average · 😐 Neutral = typical · 🙁 Negative = below average · 😨 Very negative = unusually downbeat. It reflects the tone of coverage, not our valuation. Positive
Recent news coverage is more positive than average.
Note from the team Oct 11, 2026
AI conclusion: Core banners have stabilized under current leadership while the activewear division continues to trail, reflecting limited evidence of durable advantage amid retail competition.
Main risk: Rivals such as Shein and Temu with on-demand small-batch production and AI-driven trend detection could capture more customers in casual and activewear by offering lower prices and faster cycles, squeezing margins and sales at Old Navy, Gap and Athleta.
Bull case: By accelerating its own AI tools for design and personalized shopping while sharpening brand differentiation, Gap could win back customers from ultra-fast rivals and mitigate tariff impacts through diversified sourcing.
Bear case: If Shein and Temu continue eroding market share with cheaper faster fashion and tariffs inflate costs without mitigation, Gap's core banners and Athleta could see persistent sales declines and margin pressure in a commoditizing apparel market.
Gap sees the exit of Athleta’s top executive as an opening to reset the brand after its extended sales slump. Core banners have stabilized under current leadership, yet the activewear division still trails and demands disciplined execution to regain ground. Will the reset finally strengthen Athleta’s contribution or expose ongoing structural weaknesses in a crowded market?
Join the discussion →

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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Apparel Retail · 101 stocks

Beats the industry median on 10/15 measures
Overall it ranks above its industry peers.
Valuation
Quality Score 60 · Above median
Fair Value upside −3.8% · Below median
Profitability
Return on equity (12 months) 33.8% · Top 25%
Return on assets 6.5% · Above median
Net margin (12 months) 8.1% · Above median
Operating margin (12 months) 6.7% · Below median
Growth and dividend
Revenue growth (quarter YoY) −2.0% · Below median
Dividend yield (12 months) 3.2% · Above median
Balance sheet
Debt / equity 0.39× · Highest 25%

Valuation Multiplesvs Apparel Retail median · lower = cheaper

P/E (12 months) 6.5× · Cheapest 25%
P/B 2.17× · Pricier than median
P/S (12 months) 0.54× · Cheaper than median
Price / free cash flow (fiscal year) 10.0× · Cheaper than median
EV/EBITDA 4.9× · Cheaper than median
PEG 1.17× · Cheaper than median

Strength profile in five axes (Snowflake)

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE (fair-value potential)28 · sector 54
FUTURE (revenue growth)0 · sector 14
PAST (return on equity)100 · sector 39
HEALTH (low debt)80 · sector 100
DIVIDEND (yield)63 · sector 59

Context: sector, industry, market

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

Similar stocks

10 more Apparel Retail stocks, each showing price versus our Fair Value estimate.

Stock Price Fair Value vs Fair Value Compare
lululemon athletica inc., LULU $110.79 $307.70 +178% vs GAP
Industria de Diseño Textil, S.A ITX €59.04 €64.94 +10% vs GAP
Aritzia Inc ATZ C$155.00 C$170.50 +10% vs GAP
Urban Outfitters, Inc URBN $84.70 $92.85 +10% vs GAP
Fast Retailing Co 6288 HK$39.08 HK$32.03 −18% vs GAP
The TJX Companies, Inc TJX $135.30 $85.31 −37% vs GAP
Burlington Stores, Inc BURL $246.76 $150.41 −39% vs GAP
Ross Stores, Inc ROST $231.09 $118.41 −49% vs GAP
Trent Limited TRENT ₹3,079 ₹1,277 −59% vs GAP
Victoria's Secret & Co VSXY $108.05 $34.31 −68% vs GAP

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The Gap, Inc.: fair value per Fair Value Calculator

Cite: Fair Value Calculator (2026). "The Gap, Inc. Fair Value". https://www.fairvalue-calculator.com/stock/GAP

Frequently asked questions

Is The Gap, Inc. (GAP) overvalued or undervalued?
As of Nov 9, 2026, our model estimates a fair value of $20.67 versus a price of $21.48, about 4% lower (fairly valued).
What is the fair value of GAP?
Our model-based fair value for The Gap, Inc. is $20.67 (as of Nov 9, 2026), built from audited fundamentals. The current price: $21.48.
What is the quality score of GAP?
The Gap, Inc. has a Quality Score of 60/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for The Gap, Inc. (GAP)?
Our model-based price target is the fair value of $20.67 (as of Nov 9, 2026) from 24 valuation models. Cautious scenario $14.55, optimistic scenario $27.65. It is a calculation from audited fundamentals, not an analyst target.
What is the The Gap, Inc. stock forecast for 2026?
Our models put fair value at $20.67, about 4% lower versus a price of $21.48 (fairly valued). Cautious scenario $14.55, optimistic scenario $27.65. The calculation is refreshed regularly with new filings.
What is the revenue of The Gap, Inc. (GAP)?
The Gap, Inc. reported trailing-twelve-month revenue of about $15.3B (latest available figure, as of Nov 9, 2026).
Does The Gap, Inc. pay a dividend?
The Gap, Inc. currently shows a dividend yield of 3.17% relative to its recent price (as of Nov 9, 2026).
How much is the dividend of The Gap, Inc. (GAP) and when is the ex-dividend date?
The Gap, Inc. pays a dividend of $0.68 per share a year, a dividend yield of 3.2%. The last ex-dividend date was Oct 7, 2026. A dividend has been paid every year since at least 1986. The payout ratio is 16.4% of earnings (on adjusted earnings, reported 20.5%). Free cash flow covers the dividend 3.45 times. Our assessment: Well covered. A low payout and the dividend is fully funded by free cash flow, a comfortable, sustainable dividend.
What growth is priced into The Gap, Inc. (GAP)?
For today's price to be fair in a discounted-cash-flow model, The Gap, Inc. would have to grow free cash flow by -1.9 % per year for five years (discount rate 12.2 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +2.2 % per year. As of Nov 9, 2026.
What discount rate (WACC) does the fair value of GAP use?
Our models discount The Gap, Inc. at 12.2 %: a base by market capitalisation (mid), damped by beta 2.03, country premium for USA. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For The Gap, Inc. that is -1.9 % per year for five years, then slowing evenly to 2 % by year ten, using the same discount rate (12.2 %) and the same formula as our fair value.
How much growth has The Gap, Inc. (GAP) delivered so far?
Over the past 5 years revenue at The Gap, Inc. grew +2.2 % a year. The price currently implies free-cash-flow growth of -1.9 % per year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of The Gap, Inc. (GAP) growing?
The median revenue growth in the sector is +4.7 % a year. That is the yardstick for the growth priced into The Gap, Inc. (-1.9 % per year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of The Gap, Inc. (GAP)?
The free-cash-flow yield on the price is 9.98 %: that much free cash flow The Gap, Inc. produces per unit of market value. When it exceeds the discount rate of our models (12.2 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of The Gap, Inc. (GAP)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For The Gap, Inc. it is $20.67 per share (as of Nov 9, 2026), against a price of $21.48. It is the blended result of 24 valuation models in 8 families (DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings).
Is The Gap, Inc. stock overvalued or undervalued in 2026?
As of Nov 9, 2026, GAP trades above its calculated fair value: price $21.48, fair value $20.67, a gap of about −4% (fairly valued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of GAP?
No. The price is what the market pays today ($21.48); the fair value is what the company's own numbers justify ($20.67). For The Gap, Inc. the two are $0.8110 per share apart. That gap is exactly why we show both numbers side by side.
How much is The Gap, Inc. worth?
The market values The Gap, Inc. at about $8.2B (market capitalisation, as of Nov 9, 2026). Per share that is $21.48; our models calculate a fair value of $20.67 per share.
What do the bullish and bearish scenarios say about GAP?
Our models span a range for The Gap, Inc.: cautious scenario $14.55, base $20.67, optimistic $27.65 per share (as of Nov 9, 2026, price $21.48). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of GAP?
The Gap, Inc. trades at a price-to-earnings ratio of 6.5 (as of Nov 9, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of $20.67 is built from several models across several years. Excluding one-off items of fiscal year 2026 it is 8.1 (reported for FY2026: 10.1). Median P/E at fiscal year-end, 8 fiscal years (2017 to 2026), reported earnings, 4 of the years ex one-offs: 12.8. Other multiples: PEG 1.2, P/B 2.2, P/S 0.5, EV/EBITDA 4.9.
What is the PEG ratio of GAP?
The PEG ratio of The Gap, Inc. is 1.17 (P/E divided by earnings growth, as of Nov 9, 2026). That is above 1, so the growth is already paid for in the price.
How solid is the balance sheet of The Gap, Inc. (GAP)?
Balance-sheet figures for The Gap, Inc. (as of Nov 9, 2026): return on equity 33.8%, debt of 0.39 per unit of equity. They feed the Quality Score of 60/100, which measures business quality independently of the share price.
How far is GAP from its 52-week high?
The Gap, Inc. trades at $21.48, about 25% below its 52-week high of $28.66 and 17% above the low of $18.35 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of $20.67 is for.
Which stocks are comparable to The Gap, Inc.?
From the same area (Consumer Cyclical) we also value Industria de Diseño Textil, S.A, The TJX Companies, Inc, Fast Retailing Co, Ross Stores, Inc, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is The Gap, Inc. stock attractive at the current price?
The data as of Nov 9, 2026: price $21.48, calculated fair value $20.67 (−4%), Quality Score 60/100, from 24 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of GAP calculated?
We run The Gap, Inc. through 24 models from 8 families: DCF Models, Earnings-Based, Dividend Discount, Multiples, Asset-Based, Growth DCF, Economic Profit, Growth Earnings. Every model gets the same audited fundamentals; the fair value of $20.67 builds on their evidence-weighted average, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 13.3% above its aggregate fair value. The Gap, Inc. itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of The Gap, Inc. (GAP)?
The closing price on Nov 6, 2026 was $21.48. Our model-based fair value is $20.67, about 4% lower (fairly valued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with The Gap, Inc. right now?
The price sits close to our fair value, market and models broadly agree here, little valuation tension. A fairly wide model range ($14.55 to $27.65) leaves room in how you read the outcome.
Where does the earnings growth of The Gap, Inc. (GAP) come from?
Earnings per share at The Gap, Inc. grew −2.1 % a year from 2015 to 2026. Broken into its drivers: revenue per share +0.4 %, EBIT margin −5.3 %, tax rate +2.4 %, residual (interest, one-offs) +0.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.

Key figures of The Gap, Inc.

How large is the market capitalisation of The Gap, Inc. (GAP)?
The market capitalisation of The Gap, Inc. is $8.2B. The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of The Gap, Inc. (GAP)?
The price-to-sales ratio of The Gap, Inc. is 0.54 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of The Gap, Inc. (GAP)?
Earnings per share at The Gap, Inc. are $3.32 (price ÷ EPS = P/E 6.5). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of The Gap, Inc. (GAP)?
The dividend yield of The Gap, Inc. is 3.2% (payout 16.4%, on adjusted earnings, reported 20.5%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of The Gap, Inc. (GAP)?
The net margin of The Gap, Inc. is 8.1% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of The Gap, Inc. (GAP)?
The return on equity (ROE) of The Gap, Inc. is 33.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of The Gap, Inc. (GAP)?
On an EBIT basis the return on assets of The Gap, Inc. is 5.8% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of The Gap, Inc. (GAP)?
The operating margin of The Gap, Inc. is 6.7% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at The Gap, Inc. (GAP)?
Revenue at The Gap, Inc. is growing −2.0% versus a year earlier (3y avg −0.5%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at The Gap, Inc. (GAP)?
Earnings per share at The Gap, Inc. are growing +142% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does The Gap, Inc. (GAP) carry?
The net debt of The Gap, Inc. is $3.0B (fiscal year 2026, ≈ 3.6 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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