The Gap, Inc. (GAP) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
The Gap, Inc. stock (GAP) is currently trading at $23.91. The Gap, Inc. PE ratio is 11.23. The Gap, Inc. PS ratio (Price-to-Sales) is 0.58. Analyst consensus price target for GAP is $30.65. WallStSmart rates GAP as Hold.
- GAP PE ratio analysis and historical PE chart
- GAP PS ratio (Price-to-Sales) history and trend
- GAP intrinsic value — DCF, Graham Number, EPV models
- GAP stock price prediction 2025 2026 2027 2028 2029 2030
- GAP fair value vs current price
- GAP insider transactions and insider buying
- Is GAP undervalued or overvalued?
- The Gap, Inc. financial analysis — revenue, earnings, cash flow
- GAP Piotroski F-Score and Altman Z-Score
- GAP analyst price target and Smart Rating
The Gap, Inc.
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GAP Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · The Gap, Inc. (GAP)
GAP trades 90% above its Graham fair value of $14.48, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
The Gap, Inc. (GAP) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, return on equity, price/sales. Concerns around operating margin and revenue growth. Fundamentals are solid but monitor weak areas for improvement.
The Gap, Inc. (GAP) Key Strengths (5)
Paying less than $1 for every $1 of annual revenue
Every $100 of equity generates $23 in profit
Good growth relative to its price
61.62% held by institutions, strong professional interest
Mid-cap company balancing growth potential with stability
Supporting Valuation Data
The Gap, Inc. (GAP) Areas to Watch (5)
Earnings declining -16.00%, profits shrinking
Near-zero operating margins, business under pressure
Revenue growing slowly at 2.10% annually
Thin profit margins with limited profitability
Fairly priced relative to book value
The Gap, Inc. (GAP) Detailed Analysis Report
Overall Assessment
This company scores 55/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 5 register as strengths (avg 8.4/10) while 5 fall into concern territory (avg 2.6/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Price/Sales, Return on Equity, PEG Ratio. Valuation metrics including PEG Ratio (1.39), Price/Sales (0.58) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 23.10%.
The Bear Case
The primary concerns are EPS Growth, Operating Margin, Revenue Growth. Some valuation metrics including Price/Book (2.34) suggest expensive pricing. Growth concerns include Revenue Growth at 2.10%, EPS Growth at -16.00%, which may limit upside. Profitability pressure is visible in Operating Margin at 4.89%, Profit Margin at 5.31%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether EPS Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 23.10% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 2.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. Strengths and concerns are roughly balanced. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (Price/Sales, Return on Equity) and negatives (EPS Growth, Operating Margin). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
WallStSmart Analysis Synopsis
Data-driven financial summary for The Gap, Inc. (GAP) · CONSUMER CYCLICAL › APPAREL RETAIL
The Big Picture
The Gap, Inc. is in a high-growth phase, prioritizing rapid expansion over margins. Revenue reached 15.4B with 210% growth year-over-year. Profit margins are thin at 5.3%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
Revenue growing at 210% YoY, reaching 15.4B. This pace significantly outperforms most APPAREL RETAIL peers.
ROE of 2310.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
What to Watch Next
Margin expansion: can The Gap, Inc. push profit margins above 15% as the business scales?
Growth sustainability: can The Gap, Inc. maintain 210%+ revenue growth, or will competition slow it down?
Volatility is elevated with a beta of 2.24, so expect amplified moves relative to the broader market.
Sector dynamics: monitor APPAREL RETAIL industry trends, competitive moves, and regulatory changes that could impact The Gap, Inc..
Bottom Line
The Gap, Inc. is a high-conviction growth story with revenue accelerating at 210% while profitability is still developing. For growth-oriented investors, the trajectory is compelling. For value investors, the thin 5.3% margins and premium valuation suggest patience until the unit economics mature further.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
Data sourced from SEC Form 4 filings
Last updated: 11:30:51 AM
About The Gap, Inc.(GAP)
NYSE
CONSUMER CYCLICAL
APPAREL RETAIL
USA
The Gap, Inc. is a leading global apparel retailer founded in 1969, recognized for its portfolio of well-known brands such as Gap, Banana Republic, Old Navy, and Athleta. Headquartered in San Francisco, California, the company operates in over 40 countries and is dedicated to providing quality, value, and style to a diverse customer base. Emphasizing digital transformation and sustainability, Gap is expanding its e-commerce capabilities while focusing on innovative product development and strategic growth initiatives to maintain its competitive edge in the ever-evolving retail sector.